There are several factors tied to the price performance of an altcoin. During periods of high on-chain activity, it’s not unusual to see investors give preference to one project over another. Smart contract operator, Cardano, presented a similar narrative. Its price has risen by as much as 51% over the last three days, coinciding with spikes in developmental activity and network growth.
The Cardano network has undergone several network updates during May as the project inches closer to Vasil Hardfork (details can be found here). As developers initiate several upgrades prior to the deadline, the level of developmental activity has risen to its highest in Cardano’s history.
Another catalyst for its recent growth can be attributed to healthy on-chain activity. According to Cardano Blockchain Insights, the number of transactions on the network has grown significantly over the past few days, likely due to Project Catalyst payouts and the growth of Dripdropz – a platform that provides token dispensing services to the Cardano community.
What to expect in terms of price?
Following a period of lackluster movement between 16-28 May, Cardano bounced back from $0.445 support after the broader market turned the risk on over the weekend. On Tuesday morning, the candles broke past a bearish setup (descending triangle) while the Relative Strength Index moved past 50 for the first time since April 8 – signs that could fuel more gains for ADA.
However, a breakout was required above the 50-SMA (yellow) to carry on progressing further on the chart. The said breakout would put ADA on course to $0.775-resistance, from where the coveted $1-mark would be its next stop. Since the projected move represented a full 55% climb from ADA’s press time level, it was important that the broader market remains bullish over the course of the next few weeks.
Both fundamentals and technical backed ADA’s movement, which is exactly what a bullish investor would want to see during a rally. Should Bitcoin avoid another flash crash this week and hold strong above $30K, bulls would have no excuse to maintain their momentum and push ADA towards the $1-mark.
Credit: Source link