- Alonzo’s hard fork upgrade is a key force behind the current bullishness.
- ADA has set its sight on smart contracts, which has long been dominated by Ethereum.
ADA price rose by 5.37% in 24 hours to register $3.02 at 0858 GMT on Thursday, as it sustained the recent price upsurge that has seen it rise by about 105% in one month and solidify its third-place slot in crypto market capitalization ranking.
The hype around Alonzo upgrade
Following the US exit from Afghanistan, Cardano CEO Charles Hoskinson is convinced that digital assets like Cardano may play a role in guaranteeing Afghani citizens’ financial privacy by providing means to move and store their money without third parties knowing their transactions.
So far, Cardano has risen by more than 1500% in 2021 and this has certainly caught the attention of the market. ADA is actively working towards Alonzo, an eagerly awaited update. The IOHK, the team developing Cardano, just confirmed that the new testnet is ready to handle smart contracts.
For months, crypto fans have been talking about Alonzo, the upgrade that will enable the Cardano blockchain to be smart contract compliant. The Alonzo upgrade is set to be rolled out for use later in September. In addition, it will also ensure that Cardano can handle Decentralized Apps.
To top it off, IOHK has introduced a platform that will allow users to migrate their ETH holdings to Cardano’s blockchain. Over a hundred projects have already expressed their intention to switch to Cardano, according to Charles Hoskinson.
Winning over skeptics
The launch of the Alonzo purple testnet proved that PolyNetwork and Polygon founder’s previous gamble against smart contract integration had failed. Polynetwork also predicted that ADA’s price would not reach $3 by 2021 and subsequently made a wager on this belief. All these predictions have been proven wrong.
Things are certainly looking up for altcoins on the institutional front as well. A report published on Aug. 30 by CoinShare, revealed total inflows of $24 million into altcoin-based investment products. This bettered the previous week’s investments by about 14%.
ADA currently ranks third behind BTC and ETH in market capitalization. Its price surge in recent weeks has been so sudden that it is possible that some investors may be waiting for the price to fall before purchasing it. Alternatively, a sustained resurgence of ADA could force undecided investors into joining the fray. That looks quite possible, considering that ADA has risen by 115% in a month and was 3.2% higher against Bitcoin and 2.8% up against Ethereum at 0850 GMT on Thursday.
The largest challenge Cardano is up against is the difficulty of wide-scale adoption. Nevertheless, this week, over $10 million poured into Cardano — its greatest ever influx.
The technical outlook for ADA
ADA is confirmed bullish based on the fact that the price is currently above the 20-EMA. The strong market momentum is also portrayed by the RSI, which is at 69. A sustained bullish push could propel the ADAUSD price higher to $ 3.16.
However, with the RSI at 69, ADA is nearing an overbought territory and this could bring in bearishness in the market. In that case, ADA may slip to find the first support at $2.94 and a further bearish control may push the price down to the second support at $2.73.
