TLDR
- Cardano has overtaken Ethereum in core developer activity with 21,439 GitHub commits in 12 months
- ADA is currently trading around $0.70, with analysts eyeing potential recovery to $1.20-$1.30
- Current price pattern shows similarities to the 2021 consolidation that preceded a 4000% rally
- Strong accumulation for seven consecutive weeks totaling $379 million in ADA purchases
- Network fundamentals show mixed signals with network fees down 52% over the past three months
Cardano (ADA) has recently claimed the top spot in core developer activity, surpassing Ethereum for the first time. This milestone comes as the cryptocurrency navigates a period of price consolidation while analysts debate its potential for future growth.
According to data from Cryptometheus, Cardano recorded 21,439 GitHub commits across 550 core repositories over the past 12 months. This places it ahead of Ethereum, which logged 20,962 commits during the same period.
The activity spans 12 core projects and 36 ecosystem projects, accounting for 4,276 GitHub repositories overall. This level of development directly challenges the past criticism that Cardano is a “ghost chain” with limited utility.
Cardano founder Charles Hoskinson has taken the opportunity to predict that Ethereum will crash by 2040, pointing to what he describes as outdated technology, layer 2 fragmentation, and decreasing developer engagement.
Currently, ADA trades at approximately $0.70, maintaining what some analysts describe as a key support level. This price point has held steady despite a 12% drop last month.
Historical Pattern Comparison
Technical analysts have noted interesting similarities between the current market structure and patterns observed before the 2021 rally.
The weekly chart shows that ADA broke through an important resistance zone in November. Since then, the price has consolidated within this zone, with former resistance now being tested as support.
This pattern closely resembles what occurred in 2020 prior to ADA’s explosive 4000% rise to its all-time high of $3.10. If this historical pattern repeats, some analysts suggest a potential 450% increase from current levels.
Market data from Coinglass reveals strong accumulation trends, with investors purchasing $379 million worth of ADA over seven consecutive weeks. This represents 1.7% of the cryptocurrency’s total market capitalization of $22 billion.
For context, during a comparable phase in 2020, only $9.57 million was accumulated. The current buying pressure is nearly forty times higher, which could potentially lead to supply scarcity and upward price pressure.
Realistic Expectations
Despite these positive signals, there are reasons for caution regarding short-term price expectations.
Trading volume for ADA has decreased from earlier peaks this year. While February saw volumes exceed $1.8 billion as the price reached $0.80, current volume hovers around $640 million.
Network fundamentals also present mixed signals. Cardano’s network fees, which reflect blockchain usage, have declined by 52% over the past three months to just $8,100.
The Relative Strength Index (RSI) has only entered overbought territory once this year, suggesting that recent price movements have been driven more by short-term excitement than sustained momentum.
While some analysts maintain optimistic long-term targets as high as $10 by 2029, the immediate outlook appears more measured, with many expecting the price to remain below $1 for the remainder of Q2.
For traders watching ADA closely, the consolidation around $0.70 with ongoing development progress and strong accumulation patterns might indicate a build-up phase before the next market cycle.
The post Cardano (ADA) Price: Historical Pattern Comparison Shows Potential for Upward Movement appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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