Cardano’s native blockchain asset ADA hit a new high on Monday, as investors pinned their hopes on an upcoming smart contracts feature that it hopes to drive adoption of the cryptocurrency.
The ADA / USD pair peaked at $ 2,899 around 9:00 UTC, leading to anticipation that it would easily close above $ 3 in the coming sessions.
Many analysts, including chartist pseudonym PostyXBT, they pointed that the Cardano token had entered a “price discovery mode.” Meanwhile, David Gokhshtein hinted that ADA / USD could continue its bull run until September 12, the day that Cardano is going to integrate a smart contracts feature to its blockchain via the “Alonzo” update.
$ ADA is just a monster right now.
I’m trying to figure out it’s price before 12/9/2021.
– David Gokhshtein (@davidgokhshtein) August 23, 2021
ADA is a monster right now.
I am trying to calculate the price before 9/12/2021.
In detail, the Alonzo update introduces a native smart contract development language called Plutus to the Cardano ecosystem. Plutus is now available for testing and brings functional programming to smart contract creation to everyday users.
As a result, ADA bulls anticipate token adoption to skyrocket in upcoming sessions as Cardano attracts decentralized app developers, operating in the emerging sectors of decentralized finance and non-fungible tokens, to its contract ecosystem. smart.
But Cardano’s technical indicators predict a shock in the short term, something that could cause the ADA / USD pair to correct down to 40% despite maintaining its long-term bullish outlook.
The daily relative strength index (RSI) of the Cardano token has ventured into overbought territory, around 83. Traders consider an RSI reading above 70 to be overvalued. As a result, it leads them to sell the asset to ensure maximum profits.
For example, a rise in ADA / USD rates in the first quarter of 2021 sent its RSI reading above 90 points. Later, the pair began to consolidate sideways while holding support near its 50-day exponential moving average (50-day EMA; the scarlet wave).
The ADA price is now on top of gains of 114% so far this month and 1.511% so far this year. At the same time, an oversold RSI paints a tentative profit-taking scenario. Therefore, if the Q1 / 2021 fractal repeats, the next ADA support line comes in close to its 50-day EMA at $ 1.73, almost 40% below current prices of $ 2.83.
$ ADA Alonzo fork is in less than 3 weeks. Allegedly 100+ launches coming
And a major Summit
My first targets are going to be above $ 3 for TP1
I don’t know how high this goes in price discovery so will just play it as we go. Exciting weeks ahead https://t.co/47tnpZS3Rw pic.twitter.com/0ZRUZrMcpy
– Pentoshi Wont DM You (@ Pentosh1) August 19, 2021
The ADA fork, Alonzo, is in less than 3 weeks. Supposedly more than 100 launches on the way
And an important summit
My first goals are going to be above $ 3 for the TP1.
I don’t know how high this goes in price discovery, so we’ll just play as we go. Exciting weeks ahead
But a correction won’t necessarily deplete Cardano’s long-term bullish outlook. Given the potential success of its Alonzo upgrade, the project could end up attracting more speculative offers on the upside for its ADA token. As a result, the ADA / USD exchange rate expects to remain in price discovery mode.
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