- Cardano price is likely to slow down and pull back to the $0.516 support level after a 55% rally.
- A bounce around the aforementioned level could trigger another 52% uptrend.
- A four-hour candlestick close below $0.471 will invalidate the bullish thesis for ADA.
Cardano price has managed to make an explosive run higher over the last four days as Bitcoin bulls make a comeback. This impressive upswing looks now to be preparing for another leg up.
Cardano blockchain development through the roof
Supporting this bullish outlook are the recent developments from both a fundamental and an on-chain scenario. Perhaps the most significant one is the recent uptick in the development activity for the ADA blockchain.
Based on Santiment’s data, this metric hit an all-time high of 68 on May 27. Considering the upcoming Vasil hard fork, which is set to debut in June, this spike in development activity makes complete sense.
The new upgrade should, in theory, boost the smart contract capabilities of Cardano and its smart contract platform known as Plutus.
ADA development activity
Investors try to catch up
Adding to this spike in backend activity for the Cardano blockchain is the recent uptick in the 24-hour transaction volume. This number is currently hovering around $14.24 billion under Bitcoin’s at $18.60 billion.
This massive on-chain volume transacted on the ADA chain indicates a high level of activity from investors or users. Investors need to note that Cardano has been undergoing massive changes not just due to the recent Vasil hard fork – since the implementation of the smart contracts and the ability to mint native assets, the activity of investors, developers and users has grown exponentially.
As a result, the massive transaction volume number that almost competes with the big crypto could be a combination of transactions on the blockchain, dApps and NFT marketplaces.
ADA 24-hour transaction volume
Further adding credence to such a high transaction volume for Cardano is the recent lift-off of the NFT marketplaces. Pool.pm, a data aggregation platform, shows that more than 5 million NFTs or native assets were minted on the Cardano blockchain.
Pool.pm
This massive uptick in user interest in the ADA blockchain came after the Mary hard fork that launched on March 1, 2021. In July 2020, Cardano’s founder Charles Hoskin foreshadowed the launch of multi-asset functionality by tweeting,
This time next year I predict there will be hundreds of assets running on Cardano, thousands of DApps, tons of interesting projects and lots of unique use and utility. 2021 is going to be so much fun watching Cardano grow and evolve. The community is definitely ready to innovate
— Charles Hoskinson (@IOHK_Charles) July 26, 2020