Cardano (ADA) had a grand entrance into the month of July, i.e., last week before Bitcoin’s pullback influenced a market-wide plummet that left the ADA/USD trading pair dropping to lower lows around $0.3165.
Related: Cardano Boss Charles Hoskinson Hints At Big Upgrades Coming This Month
This week, Cardano bulls outsmarted the bearish wave that engulfed the overall crypto market by buying the dip, and now the price is on its way to recovery, having retested $0.3750 over the last 48 hours.
As such, ADA has recouped all losses incurred on July 7th; a factor that has attracted positive investor sentiment towards the 22nd largest cryptocurrency by market capitalization. Judging from the charts since the start of the week, ADA is one of those lucky gems to be in the bullish zone as the rest continue to record losses.
Source: Tenor
The Upcoming Cardano Chang Hardfork
A major catalyst driving ADA’s recent gains is the announcement of an upcoming hard fork dubbed Chang. Cardano founder Charles Hoskinson announced the update while speaking during a July 7 Ask Me Anything session.
The founder described some of the ongoing efforts that culminated into this moment, saying that it has taken the team at least 2-years to achieve the upcoming Chang hard fork.
According to Hokinson, Chang marks a critical moment for Cardano as it's the final stage for the network to transition into a fully decentralized blockchain ecosystem. In the run-up to Cardano’s previous upgrade, which took place in 2021, ADA rose by a staggering 130% where it tested $3.10 from $1.35.
Cardano is preparing for the Chang Hard Fork, set to occur by the end of July.
— IntoTheBlock (@intotheblock) July 6, 2024
It's worth noting that before its previous hard fork in 2021, $ADA surged 130%, from $1.35 to $3.10 in just a month. pic.twitter.com/E8zTEgZM6k
Holders are optimistic that the cryptocurrency will retrace a similar pattern and achieve new multi-month highs in the next few days leading to the upgrade.
Cardano Network Growth and Onchain Analysis
Onchain data also suggests ADA’s recent upside is in sync with the Cardano network’s growth, which, as per IntoTheBlock, registered an increase in active addresses from June 17’s 21,560 to 36,700. At the same time, users have registered 10,420 new addresses, up from 6,110 within the same period.
Whale holders with a balance of 10 million to 100 million ADA coins have increased from 356 to 400 since February. This data shows that whale hodlers have been stepping up their game to fill their bags in anticipation of more long-term upsides, thereby asserting their faith in Cardano.
ADA/USD Technical Analysis
On the technical side of things, market data indicates ADA’s aggregated ratio of LONG/SHORT is 2.35, with only 30% Shorts against 70% Longs. This already suggests market participants are strongly supporting Cardano’s price and hope it will perform bullishly in the coming days.
If Cardano bulls survive the ongoing Bitcoin onslaught, the price of ADA will likely surge by 43% and test $0.62. This is possible if the bulls manage to crash resistance points at $0.46, $0.54, and $0.60.
The ongoing Bitcoin bearishness is a result of the ongoing Mt.Gox repayments to creditors, as well as a massive sell-off of seized BTC by the U.S. and German governments. In case the sellers prevail and manage to overcome Cardano bulls, the price of ADA could drop to as low as $0.24, given that the next key support level on the downside is $0.28.
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That’s all for Cardano this week. Stay tuned for more HODL insights and market analysis.
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