Cardano (ADA) Social Buzz Peaks as SEC Validates Its Government Smart Contract Use

• SEC acknowledging Cardano’s role in “smart contracts for government services,” highlights its potential role in governance, academic credentialing, and secure infrastructure management.
• Meanwhile, whales accumulated 190 million ADA in the last 24 hours, signaling strong investor confidence and rising market interest.

Cardano’s social sentiment has picked up significantly well over the last week as the U.S. Securities and Exchange Commission (SEC) classified ADA’s use cases suitable for smart contracts used in government services.

In one of the recent documents, the SEC shared how America’s digital asset stockpile of XRP, SOL, and ADA can play a crucial role in the country’s digital economy. The document reads that Cardano could be best suited for academic credentialing, smart contracts for government services, as well as secure infrastructure management.

Cardano Sees Surge in Social Media Sentiment Amid SEC Classification

Blockchain analytics firm Santiment noted that the Cardano blockchain experienced a significant uptick in positive social media sentiment thereby reaching a four-month high. The heightened optimism comes as the U.S. Securities and Exchange Commission (SEC) recently classified Cardano’s use case as “smart contracts for government services,” reinforcing its real-world utility.

Source: Santiment

This development has bolstered confidence among the Cardano community, driving bullish sentiment to its highest levels in over four months, as mentioned in our previous news article. The renewed enthusiasm reflects growing interest in ADA as a key player in blockchain applications for governance and public services.

Apart from America, Cardano is also getting visibility in other parts of the globe. Recently, Cardano founder Charles Hoskinson met with Takuya Hirai, Japan’s former Digital Minister, during a courtesy visit. Hirai commended Cardano for its dedication to advancing the development of smart contracts and decentralized applications, highlighting the platform’s significant role in the blockchain ecosystem, as detailed in our last news piece.

ADA Price Surge and Whale Action

Amid the broader crypto market recovery following the FOMC meeting on Wednesday, the Cardano (ADA) price has gained 3%, moving to $0.75 levels, with daily trading volumes surging by 70% to $1.12 billion. Furthermore, the derivatives data from Coinglass shows that the Cardano futures open interest has surged 2.41% to more than $760 million.

On the other hand, crypto analyst Ali Martinez has reported significant whale activity in the Cardano ecosystem. According to Martinez, large investors purchased 190 million ADA tokens in the last 24 hours, signaling growing interest and confidence in the cryptocurrency.

Source: Ali Martinez

On the other hand, the Cardano price has formed a bullish inverted head-and-shoulders pattern, leading to a breakout above $0.76 on the 4-hour chart. This move has triggered a 10% price surge, with ADA targeting a potential high of $0.85.

However, traders should remain cautious as the 200 EMA resistance, currently around $0.83, may pose a challenge to further upward momentum.

Source: TradingView