Cardano network activity and ADA oversold price action suggest a powerful breakout
On-chain growth, an increase in DeFi usage, and a positive technical outlook could support a breakout in ADA price.
Market analysis
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Caradano's native gasoline payment token, ADA, received a major blow in early June when the SEC deemed it a security in its lawsuit against Binance and Coinbase.
The lawsuit triggered a 42.5% decline in the price of ADA from $0.37 at a two-year low to $0.21 within days of the SEC lawsuit.
>Furthermore, the token has come under additional downward selling pressure due to the delisting of US-based trading apps Robinhood and eToro.
However, under the hood, the network grew with a slight increase in DeFi activity after a scalability upgrade in May.
Technical and on-chain analysis of the token also shows positive recovery potential.
Cardano's DeFi ecosystem is boomingOver the years, Cardano has come under fire for continuous delays and network updates.
Cardano founder Charles Hoskinson attributed the setbacks to “betting on the wrong technology and being a bit ambitious with the roadmap” in an interview with Cointelegraph, acknowledging that 85 % of initial roadmap completed.
Nevertheless, the network saw a spike in activity following the implementation of the long-awaited Hydra scalability upgrade launched in the first week of May 2023.
Total fees paid on Cardano soared a year after upgrade, before crashing amid SEC lawsuit. However, the activity has been on a consistent uptrend over the past few weeks.
On-chain growth, an increase in DeFi usage, and a positive technical outlook could support a breakout in ADA price.
Market analysis
Join us on social networks
Caradano's native gasoline payment token, ADA, received a major blow in early June when the SEC deemed it a security in its lawsuit against Binance and Coinbase.
The lawsuit triggered a 42.5% decline in the price of ADA from $0.37 at a two-year low to $0.21 within days of the SEC lawsuit.
>Furthermore, the token has come under additional downward selling pressure due to the delisting of US-based trading apps Robinhood and eToro.
However, under the hood, the network grew with a slight increase in DeFi activity after a scalability upgrade in May.
Technical and on-chain analysis of the token also shows positive recovery potential.
Cardano's DeFi ecosystem is boomingOver the years, Cardano has come under fire for continuous delays and network updates.
Cardano founder Charles Hoskinson attributed the setbacks to “betting on the wrong technology and being a bit ambitious with the roadmap” in an interview with Cointelegraph, acknowledging that 85 % of initial roadmap completed.
Nevertheless, the network saw a spike in activity following the implementation of the long-awaited Hydra scalability upgrade launched in the first week of May 2023.
Total fees paid on Cardano soared a year after upgrade, before crashing amid SEC lawsuit. However, the activity has been on a consistent uptrend over the past few weeks.
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