Cardano News – Cardano (ADA) Soars: Key Drivers Behind Today’s Price Surge on July 9

Cardano News – Cardano (ADA) Soars: Key Drivers Behind Today’s Price Surge on July 9

Cardano News – Cardano commenced the week with a strong performance, climbing 2% in the past 24 hours to reach $0.3725 on July 8. This upward movement has allowed ADA to recover all the losses experienced on Sunday, July 7, indicating a shift in investor sentiment towards the layer-1 token.

This rise in ADA’s price contrasts with the broader bearish trend in the cryptocurrency market. For instance, Bitcoin and Ether, the two largest cryptocurrencies by market capitalization, have seen declines of approximately 1.89% and 0.79%, respectively.

Several bullish factors are contributing to ADA’s price increase today.

Cardano Founder Announces Chang Hard Fork Near Completion ADA’s recent gains are attributed to an update from Cardano’s founder, Charles Hoskinson, regarding the progress of the Cardano network and the upcoming Chang hard fork. During an Ask Me Anything (AMA) session on July 7, Hoskinson detailed the ongoing efforts and achievements, emphasizing that the Cardano Chang Hard Fork is nearly ready.

Reflecting on the challenges and milestones over the years, Hoskinson acknowledged that it has been a challenging period, but the ecosystem has managed to navigate these difficulties, particularly in governance. He highlighted the completion of all components of CIP 1694, which took about two years but is crucial for Cardano’s architecture.

Central to Hoskinson’s update was the announcement that node 9.0, essential for the Chang hard fork, is almost complete.

“What’s exciting about node 9.0 is it’s the Chang Hard Fork, It’s basically there,” Hoskinson stated. The Chang hard fork is a significant upgrade for the Cardano ecosystem. According to Hoskinson, it is expected to initiate the transition to the Voltaire era, the final stage in Cardano’s roadmap to create a fully decentralized blockchain ecosystem, a process that has taken two years.

Historical performance suggests the potential for a significant rally in ADA’s price ahead of this upgrade. According to IntoTheBlock, ADA experienced a notable increase prior to its last major upgrade in 2021, rising by 130% from $1.35 to $3.10 within a month.

This historical trend has led to expectations that the upcoming Chang hard fork could similarly trigger a substantial price rally for ADA, explaining the current price movement.

Cardano Network Growth

ADA’s potential upside is also supported by recent growth in the Cardano network. Data from IntoTheBlock indicates that the number of active addresses on the Cardano blockchain increased from 21,560 on June 17 to 36,700 currently. Similarly, new addresses have risen from 6,110 to 10,420 over the same period.

Additional data from IntoTheBlock shows that addresses holding 10 million to 100 million ADA have grown from 356 in early February to approximately 400 at present. This suggests that large holders have been increasing their positions in 2024, demonstrating their confidence in the token’s long-term potential.

This confidence is further reflected in the net capital flows into crypto asset funds last week. Cardano funds received $100 million during the week ending July 5, bringing the year-to-date inflows to $9 million, according to a CoinShares weekly report.

ADA’s Bullish Divergence

The rise in ADA’s price today follows a period of growing bullish divergence between its price and the relative strength index (RSI).

Notably, ADA’s price declined between June 17 and July 7, forming lower lows, while its daily RSI ascended, forming higher lows. According to technical analysis principles, a divergence between falling prices and rising RSI indicates strength in the prevailing uptrend, encouraging traders to buy more during local dips.