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Cardano [ADA] investors should closely monitor this new development

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Cardano [ADA] has been on the radar of the crypto community lately. While the much-anticipated Vasil upgrade has been something to look forward to, other developments have followed.

First, it was ADA flipping Ripple [XRP] to become the seventh most valued cryptocurrency in market capitalization. Now, it has extended to good news for the Cardano developer community.

According to DappRadar, the global Decentralized Application (DApp) store, Cardano will soon be on its platform. When implemented, ADA developers would be able to create smart contracts blockchain applications via the Cardano network.

It’s the big league but…

As the largest blockchain distribution channel, DappRadar has provided investors with real-time market data. Additionally, the inclusion of Cardano would mean that it would join the likes of Ethereum [ETH], Polygon [MATIC], and Binance Coin [BNB] in growing thousands of DAppd on the platform. But has this transformed into benefits for ADA?

CoinMarketCap reported that ADA’s performance from the last seven days was a 10.93% uptick. While DappRadar announced its intention 24 hours back, ADA seemed to have picked a price increase as it went up 2.89% to $0.50 at press time.

Despite the price increase, it may sound too soon for investors to get excited. This position is due to the unencouraging volume influx. 

On-chain analytic platform, Santiment, noted that the ADA volume only increased to $647.12 million. This rise was less than 2% of its volume from the previous day.

Also, whale transactions worth $1 million and more had decreased. Formerly at 17 on 5 September, it went down to three transactions at press time. 

Source: Santiment

Restoration power

DeFiLlama showed that Cardano-based DApps had increased 0.14% in Total Value Locked (TVL) worth since the update was announced.

At press time, the TVL was worth $90.46 million. DApps, including Miniswap, and ADAX Pro, were all green, with the latter recording a 2542% increase in the last seven days.

Source: DeFiLlama

As for its price momentum, this development could signal a breath of new life for ADA. This is because the cryptocurrency seemed to have recovered from the earlier capitulation. Also, the Exponential Moving Average (EMA) indicated strong momentum. 

At the time of this writing, the 20-day EMA (blue ) was solidly above the 50 EMA (yellow). At this level, ADA may maintain a good buying momentum and a potential uptick in the short term.

However, investors may need to watch the trend as the Bollinger Bands (BB) showed high signs of volatility. 

Source: TradingView

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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