Why Cardano (ADA) Surged 20% This Week?

Despite its relatively late entrance into the crypto industry space, Cardano (ADA) has become one of the most talked-about blockchains in the market. From achieving impressive development activities to introducing its highly-anticipated Alonzo upgrade, Cardano is on its way to becoming a powerhouse of applications. Let's look at Cardano's performance in the past year, what's been driving its success, and its expected future. 

Cardano has achieved considerable growth in the past year. According to Santiment, Cardano was the most robust blockchain in terms of "Developer Activity" in 2022. Specifically, Cardano boasted more than 50 contributions to its respective GitHub repo per day. Furthermore, Cardano Foundation mentioned several impressive achievements, such as a 192% rise in native tokens wallets, Plutus scripts, transactions, delegated wallets, numerous partnerships and collaborations, the Cardano Summit 2022, and other events around the world. Currently, Cardano (ADA) price is USD 0.3437, with an increase of 21% this week. 

Cardano (ADA) Price Action in 2023

The price of Cardano (ADA) is currently near the local support at $0.3450, which creates the opportunity for it to return to the middle of the channel at $0.36. On a bigger time frame, the ADA price has almost reached the resistance at $0.376. Market analysts see the potential for bullish momentum in the midterm in light of the current technicals. If the crypto market continues its bullish sentiment, sideways trading in the range of $0.40-$0.60 could be expected from ADA in the short term.

The success of Cardano can be attributed to several fundamental factors. Firstly, Cardano's Alonzo upgrade enabled it to support various crypto applications, namely non-fungible tokens (NFTs) and smart contracts. This upgrade is significant because it puts Cardano in the same class as Ethereum, one of the world's leading blockchains, and opens new fields of use for the currency. Every blockchain application, including those used in decentralized finance (DeFi), usually begins with smart contracts. As such, the ability to support smart contracts is significant for the economic success of any crypto platform. 

Furthermore, Cardano's intense developer activity is another crucial factor that is the foundation of its success. Specifically, Cardano's contributions to GitHub highlighted the hard work done by its developers and the belief in its success. This has become even more expansive with the introduction of its Alonzo upgrade and is expected to remain strong in the coming years. 

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The Cardano Foundation's evaluation of the ADA movement during 2023 thus far indicates the asset's near-term potential and growth. Still, it is up to the developer and investor communities to continue their dedication toward the Cardano (ADA) to tap into its full potential. With the foundations and technicals pointing to a bullish outcome, ADA investors should continue tracking the mid-term trends to stay on top of the movement. Cardano (ADA) has become one of the most competitive coins in the crypto market. Its Alonzo upgrade, high developer activity, and numerous partnerships and collaborations have enabled the coin to grow exponentially and create a place for itself. Cardano's future remains bright, with the possibility of its price increasing to 1$ in 2023.