Cardano

Hydra

United

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 Cardano's native token, ADA, has faced significant setbacks in recent months due to regulatory scrutiny from the United States Securities and Exchange Commission (SEC). However, the network's DeFi ecosystem has continued to flourish, providing a glimmer of hope for ADA bulls.   
 Hydra Upgrade Boosts DeFi Activity   
 In May 2023, <a href="https://optimisus.com/news/crypto-news/cardano-gears-up-for-a-summer-breakout-will-ada-hit-1-soon/" rel="noopener noreferrer nofollow">Cardano</a> launched the Hydra upgrade, a layer-2 scaling solution that has significantly improved the network's throughput and scalability.   
 This upgrade has led to a surge in DeFi activity on Cardano, with the total amount of ADA deposited in DeFi applications reaching twice its peak value during the 2021 bull market.   
 Decentralization Strengthens Cardano's Position   
 In addition to the Hydra upgrade, Cardano's decentralization has also been improving. A report by <a href="https://jarvislabs.substack.com/p/reports-of-cardanos-death-have-been" rel="noopener noreferrer nofollow">Jarvis Labs</a> found that ADA ranks among the most decentralized Layer-1 blockchains based on the Nakamoto coefficient.   
 This increased decentralization could work in Cardano's favor when determining its classification as a security in the United States.   
 Positive Technical and On-Chain Analysis   
 On-chain analytics firm Santiment observed a significant amount of profit-booking at lower prices in early July as <a href="https://optimisus.com/news/crypto-news/bullish-confirmation-for-cardano-ada-amid-market-recovery-crypto-analyst-predicts/" rel="noopener noreferrer nofollow">ADA</a> rebounded toward the $0.30 resistance level. This oversold condition suggests an increased likelihood of price bounces.   
 Perpetual swap contract funding rate data from CoinGlass indicates that many traders held short positions on ADA, anticipating a downturn following the regulatory crackdown.   
 This negative sentiment, coupled with substantial sell-offs, could create an opportunity for a contrarian price rally in the short to medium term.   
 ADA Price Could Recover in the Long Term   
 From a technical standpoint, the ADA/USD pair has formed higher lows since hitting the June bottom around $0.21, indicating buyers are stepping in during dips.   
 Confirmation of a positive trend would occur if buyers successfully flip the horizontal resistance level at $0.30 into support.   
 Overall, while Cardano faces significant regulatory headwinds in the short term, the network's DeFi ecosystem is flourishing and its decentralization is improving. These factors could support ADA's price in the long term.  
 The post <a rel="noopener noreferrer nofollow" href="https://optimisus.com/news/crypto-news/cardano-network-activity-signals-potential-breakout-as-ada-price-remains-oversold/">Cardano Network Activity Signals Potential Breakout as ADA Price Remains Oversold</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://optimisus.com">Optimisus</a>.
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Cardano Network Activity Signals Potential Breakout as ADA Price Remains Oversold

Optimisus

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