- Cardano price is likely to slow down and return to the $0.516 support level after rising 55%.
- A bounce around the aforementioned level could trigger another 52% uptrend.
- A four-hour candlestick close below $0.471 will invalidate the bullish thesis for ADA.
Cardano price has managed an explosive run over the past four days as Bitcoin traders make a comeback. This impressive recovery now seems to be preparing for a new stage.
Cardano blockchain development through the roof
This bullish outlook is supported by recent developments in a fundamental scenario and a chain scenario. Perhaps most significant is the recent increase in ADA blockchain development activity.
Based on data from Santiment, this metric hit an all-time high of 68 on May 27. Considering Vasil’s upcoming hard fork, which is set to debut in June, this spike in development activity makes perfect sense.
The new upgrade should, in theory, boost the smart contract capabilities of Cardano and its smart contract platform known as Plutus.
ADA development activity
Investors try to catch up
Added to this spike in backend activity for the Cardano blockchain is the recent surge in 24-hour transaction volume. This number currently hovers around $14.24 billion below Bitcoin’s at $18.60 billion.
This massive volume of transactions on the ADA chain indicates a high level of activity from investors or users. Investors should note that Cardano has undergone massive changes, not only due to the recent Vasil hard fork – from the implementation of smart contracts and the ability to create native assets, the activity of investors, developers and users has increased exponentially.
As a result, the massive transaction volume that nearly rivals big crypto could be a combination of transactions across blockchain, dApps, and NFT markets.
24-hour ADA transaction volume
The recent launch of NFT markets adds even more credence to such a high trading volume for Cardano. Pool.pm, a data aggregation platform, shows that over 5 million NFTs or native assets have been created on the Cardano blockchain.
This massive increase in user interest in the ADA blockchain came after Mary’s hard fork launched on March 1, 2021. In July 2020, Cardano founder Charles Hoskin foreshadowed the launch of the multi-asset feature in tweeting,
By this time next year, I predict there will be hundreds of assets running on Cardano, thousands of DApps, tons of cool projects, and many unique uses and utilities. 2021 is going to be so much fun to watch Cardano grow and evolve. The community is definitely ready to innovate
—Charles Hoskinson (@IOHK_Charles) July 26, 2020
More recently, Hoskinson responded to a criticism indicating that his aforementioned tweet,
Great age and 4 million assets issued. How about informing yourself before screwing up and looking like an idiot.
Ethereum-killer connects to Ethereum
The launch of the Iagon Token Bridge adds credibility to Cardano’s fundamental outlook. This bridge allows investors to exchange their ERC-20 tokens for native Cardano tokens. Similar to the connections between different ecosystems, this bridge between the ETH and ADA ecosystem will allow users to connect, transfer and trade their assets seamlessly.
Moreover, the main reason for bridges is to enable the transfer of cash or capital between blockchains. Since Ethereum is the reigning champion in terms of network effects and total locked-in value, competing blockchains are trying to siphon off this liquidity.
Therefore, the recent increase in development activity and users interacting with the Cardano blockchain can be explained by the ability to connect and seamlessly transfer assets to and from the Ethereum blockchain.
With these major updates from a fundamental standpoint, technicals should see a noticeable increase in the market value of the underlying token, as evidenced by the roughly 55% rally in ADA over the past five years. days.
ADA price ready for new move
Cardano price swept the lower boundary of the $0.487-$0.614 range on May 26, but took another day to consolidate and recover. Since the May 27th low at $0.444, ADA has risen around 55%, reaching the top of the range at $0.614 and marking the hurdle at $0.677.
As investors continue to take profits, ADA will return to stable support levels. In this regard, $0.614 can serve as a support point, but the barriers that will prevent further selling are $0.516 and $0.541.
Investors can hoard ADA at these discounted prices and wait patiently for the next step, which could propel Cardano’s price by 52% to reach the lower boundary of the $0.785-$0.90 hurdle.
ADA/USDT 1-Day Chart
While things favor traders regarding the price of Cardano, a sudden increase in selling pressure could reverse ADA to retest the low range at $0.487. If Cardano price produces a four-hour candle near $0.471, it will invalidate the bullish thesis by producing a lower low.
In this case, ADA could crash to $0.397, where buyers could make a comeback.
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Cardano Price Potential Grows with Launch of Ethereum Bridge, Ghost Trades and Millions of NFTs | Cryptocurrency
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