Cardano Market Update: ADA trends horizontally despite spike in developer activity

IOHK, the company behind Cardano, announced the Project Catalyst. It's a $250,0000 funding round that encourages entrepreneurs and developers to create on top of the Cardano chain. Developers are encouraged to build solutions that not only help Cardano but use the tech to solve bigger problems. Proposals include - house projects running via solar energy and underpinned by the Cardano blockchain, building and promoting new ways to encourage women in the blockchain space.

Charles Hoskinson, CEO of IOHK and Cardano founder, said:

Following the launch of Cardano’s decentralized era, in July, the platform has continued to accelerate. One of our goals has always been to ‘reinvent’ venture capital and make it fairer, and this fund is the next piece in the puzzle to achieve this. The fund, combined with its democratic voting system, means that every ADA holder can be a part of making key decisions for the future of the ecosystem. IOHK and Cardano are privileged to have a creative, committed, and talented community behind us, who share our goals of democratizing finance and essential services, and this shines through in some of the brilliant proposals we have received during the test processes. Looking ahead as we hand the keys to the community, this bodes very well for the future of Cardano.

ADA/USD daily chart

ADA/USD has been trending in a consolidating channel between $0.091 and $0.098 over the last 13 days. The relative strength index is trending next to the oversold zone, and there is enough space for the buyers or the sellers to take control. However, it looks like the price is going to keep trending horizontally for a while.

ADA IOMAP

The IOMAP also shows us that price movement is going to be pretty limited. ADA is currently sandwiched between strong resistance and support levels.

ADA/USD 4-hour chart

The 4-hour chart shows that the bulls and bears have been anything but lazy. In fact, it looks like they are engaged in a tug-of-war. The 4-hour price is presently consolidating in an ascending triangle pattern. The candlesticks have charted a morning star pattern as the price failed to break above the triangle.

ADA on-chain analysis

Developer activity

As per Santiment, there has been a spike in developer activity since the funding program's announcement. Cardano has been traditionally known for its high dev activities. So, while the price is sludging along horizontally, the network is still pretty healthy.