Cardano bets $70 mln on its future: Will ADA be next to explode?

Key takeaways

Cardano community approves $70 million grant to IOE for upgrades. With ADA holding key technical support levels, a breakout above $0.74 could set the stage for further upside.

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Cardano [ADA] is gearing up for a major leap forward. The community has approved a $70 million grant for Input Output Engineering (IOE) to lead key upgrades across the network.

With funds released based on milestones and built-in transparency checks, the move would strengthen trust and potentially bring fresh momentum for ADA’s price.

Cardano community approves $70 mln grant

The Cardano community has approved over 96 million ADA (worth roughly $70 million) for Input Output Engineering (IOE) to execute major upgrades on the network.

Backed by nearly 74% of voters, the proposal is one of the largest treasury allocations in Cardano’s history.

“The roadmap, developed in alignment with community priorities and approved earlier this year, outlines one of the most ambitious development phases in the chain’s history.”

With this, IOE announced its focus on improving scalability, cross-chain functionality, and developer tools through upgrades like Ouroboros Leios, Hydra, and Mithril.

The grant will be disbursed in phases, tied to specific milestones, with oversight from Intersect and on-chain smart contracts to ensure transparency and accountability.

The IOE has also announced intent to publish regular updates and budget reports, to keep the community informed and engaged.

Development activity spikes

Cardano’s development activity has surged notably, with a rising number of contributors driving consistent code updates in late July.

This uptick came even as ADA’s price dropped below $0.62, so builder confidence remained strong despite market weakness.

As of early August, ADA has rebounded to $0.735, in line with a fresh rise in dev activity and contributor count.

These would be a sign of growing investor optimism tied to the $70M grant approval and upcoming upgrades, making a case for a sustained recovery.

ADA holds support as bulls test key MAs

ADA attempted a rebound after finding support near $0.69, just above the lower Bollinger Band.

Trading at $0.7304 at press time, ADA sat above the 200 EMA ($0.7067) and was retesting the 50 EMA ($0.7240) as resistance.

The MACD remained in bearish territory but showed signs of easing momentum, hinting at a potential bullish crossover. Bollinger Bands were tightening, suggesting a volatility squeeze could happen.

If ADA reclaims the midline and clears $0.74, it could target $0.79 next. Failure to break above the 50 EMA may trigger another drop toward $0.68. Price structure will remain neutral-bullish as long as support holds.