Cardano (ADA) has experienced a crazy runup of over 100% in a month’s time frame, moving up from $1.02 (₹75.90) to $2.20 (₹157) level. According to coinmarketcap.com, ADA is now the 3rd largest cryptocurrency by market capitalization, with a total market cap of $67.78 billion (₹5.1 trillion)as of 19th Aug 2021. And, the market dominance level stands at 3.55%.
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Cardano in recent months has gained massive popularity due to its unique and versatile blockchain on proof-of-stake (PoS) protocol that offers greater scalability along with environmental sustainability. Also, factors like the growing concern of the environmental impact of cryptocurrency mining have contributed to its rise.
For the uninitiated, Cardano is a third-generation PoS blockchain platform that enables the creation of decentralized applications (DApps) and comes with multi-chain interoperability features and verifiable smart contracts.
Here’s what the ADA USD price chart indicates of the near term possible price movement.
It’s a mixed indication coming from the analysis of the price chart.
The 20 days EMA has crossed above the 50 days EMA, which indicates a short term bullish trend in the counter. And, ADA is also comfortably holding on to the gains despite a bit of negative sentiment prevailing in the broader market, which is positive.
However, tread cautiously as other indicators like RSI, Stochastic, and MACD are in an overbought condition. If the price of ADA slips below the $1.78 level, there could be more correction. The next major support level is the $1.48 level. But, that’s unlikely to happen in the current market.
Watch out for the 50-Day EMA line for gauging the sentiment, unless it breaks below, the sentiment will be overall positive.
In another scenario, If ADA breaks above the $2.2 level, then it would most likely move towards its peak of $2.30 or higher.
The Alonzo Purple Upgrade- Why is it so Important?
One of the major reasons behind the euphoria surrounding Cardano is the Alonzo purple hard fork. It’s the final hard fork of the Alonzo phase, which included- Blue, White, and Purple. The hard fork is planned for September 12th, 2021.
The Alonzo Purple hard fork will enable many new features into the Cardano blockchain. For instance, the fork will enable the execution of smart contract functionality on its network, development of new DApps, and Defi functionality.
It will let Cardano directly compete with blockchain platforms like Ethereum, Binance Chain, Solana, Polkadot, and other similar blockchain platforms.
Konstantin Anissimov, executive director at London-based crypto exchange CEX.IO stated:
“With Friday’s revelation that the mainnet launch is on track, crypto investors and enthusiasts, in general, were hyped on the optimism that a supposedly superior blockchain infrastructure with the possibility to support the next generation of smart contracts is on the horizon,”.
P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.