Cardano Price Forecast: ADA consolidation to prevail ahead of significant breakout
|- Cardano plans to hold in consolidation ahead of 32% breakout to $0.36.
- Cardano launches new decentralized oracles for blockchain interoperability and complex DeFi solutions.
Cardano is changing hands at $0.1058 after hitting a substantial wall slightly above $0.11. The barrier has remained intact since the beginning of September, forcing ADA to settle for consolidation. An ascending trendline ensured that downside price action is mitigated. Besides, it shows Cardano holding onto a generally up-trending market despite the crucial resistance.
Cardano revolutionizes oracles with new developments
Ergo Platform, a strategic partner of Emurgo, a firm charged with handling Cardano blockchain, recently announced oracle solutions tailor-made for the ADA ecosystem. Ergo's newly-developed oracle solution for Cardano blockchain is will connect data from its pools to ADA distributed ledger using tx metadata as a conduit.
According to Ergo, the new oracles have a solid foundation for interoperability to and from its platform and Cardano blockchain. The goal is to develop oracles that support complex decentralized finance solutions, for instance, Ergo-Cardano swaps.
Cardano price could hold longer in consolidation
Cardano is among the most active cryptocurrency projects in development, especially after the Shelly mainnet. With the oracles' launch, ADA could soon start to rival Ethereum within the decentralized finance (DeFi) sector.
On the other hand, Cardano seems to have ignored the news amid prevailing consolidation. An ascending triangle formed on the 12-hour chart suggests that the sideways trading may prolong before a breakout comes into the picture. The hypotenuse of the triangle needs to hold for this bullish narrative to be executed.
ADA/USD 12-hour chart
IntoTheBlock's IOMAP reveals immense support beneath the smart contract token. The most robust demand zone runs from $0.104 to $0.106. Here, about 20,500 addresses previously bought approximately 4.5 billion ADA. If this support stays intact, the least resistance path will remain upwards. The trajectory ahead of Cardano is relatively smooth, according to the model.
Cardano IOMAP chart
Cardano's network has also been growing consistently, which is a bullish sign. IntoTheBlock's "Daily New Addresses" metric shows a higher low pattern from the beginning of November. An increased network growth suggests that the project is continually being adopted. On the other hand, it highlights the inflow and outflow of the tokens within the network, affecting price performance.
Cardano network growth chart
It is worth mentioning that that bullish outlook will be invalidated if the triangle's hypotenuse fails to hold the price. Losses that may come into the picture are likely to overshoot the support at $0.10, extending the lower leg to $0.075.
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