• Cardano price is witnessing exhaustion as it hovers above the supply zone’s upper limit at $2.16.
  • The Alonzo upgrade and NFT on Cardano blockchain could serve as catalysts for further gains.
  • ADA price has to sustain above $2.15 to have a chance at a new all-time high above $2.46.

Cardano price has shown extraordinary performance over the past three weeks as it more than doubled in value. This growth has managed to ignore all the sell signals and rise exponentially to where it currently stands.

ADA is just a few percentage points away from retesting the all-time high and even setting up a new one.

Smart contracts and NFTs

In a recent announcement on August 13, the head of delivery for Cardano, Nigel Hemsley, said that the Alonzo mainnet hard fork would be ready on September 12.

This upgrade will bring the smart contract capabilities to the Cardano blockchain. Although ADA is also called the “Ethereum killer,” the network lacked smart contract functionality, a major drawback.

However, during the recent Cardano 360 episode, Hemsley stated,

Once we hard fork the testnet it gives us this period of stability where we can test it and so can exchanges… We will submit a proposal for a mainnet hard fork and also patch you with our Plutus application backend so we can have a complete smart contract release ready for people to use, ready for the Alonzo hard fork on Monday, September 12.

This update is good news for users who have been waiting with bated breath for the release of the smart contract capability on Cardano for a long time.

With the implementation of smart contracts and multi-asset functionalities, ADA is close to expanding its already large ecosystem of users. Depending on how the mainnet hard fork goes, investors can expect the developers to flock around this new functionality or stay away from it. 

On a similar note, SXSW EDU is conducting an educational conference to explore the possibilities and educate people on Non-Fungible Tokens (NFTs) on the Cardano and other blockchains.

Cardano price has a chance to retest all-time high

Cardano price has rallied 121% between July 20 and August 15 and is currently hovering above a supply zone’s upper limit at $2.16. Out of this massive and exponential growth, ADA rallied 23% on or around the time of the Alonzo announcement. 

This thrust pushed the so-called “Ethereum killer” to slice through a supply zone extending from $1.83 to $2.16. If ADA manages to bounce off $2.16 and stay above it, it will confirm a successful flip into a demand zone. Such a move will promote more gains and a retest of the all-time high at $2.46 in some cases.

However, ADA might not be able to sustain this uptrend and might undergo a minor correction. The Momentum Reversal Indicator (MRI) has put up warning signs in the form of a yellow down arrow on the 12-hour chart. If ADA continues to rally, this index will flash a sell signal in the form of a red ‘one’ candlestick that forecasts a one-to-four candlestick correction.

Therefore, investors need to watch out for ADA for a move in either direction.

ADA/USDT 12-hour chart

ADA/USDT 12-hour chart

If the buying pressure overwhelms the bearish momentum, ADA will stay above $2.16 and make a run at the all-time high at $2.46. If the bid orders continue to pour in, Cardano price might set up a new all-time high at $2.87, coinciding with the 127.2% Fibonacci retracement level.

On the other hand, a failure to sustain above $2.16 might lead to an 8% retracement to $1.97 and, in some cases, $1.82.

But a breakdown of the $1.82 support barrier will invalidate the bullish thesis and potentially confirm a reversal of the trend.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why Polygon’s MATIC bulls could be too eager and drop the ball on this rally

Why Polygon’s MATIC bulls could be too eager and drop the ball on this rally

Polygon (MATIC) price action has been on treading nervously this week, with weekly earnings switching back and forth between profit and loss. It all comes down to trading this Friday to see if bulls can eke out a winning week.

More Polygon News

How can traders squeeze in more gains as Shiba Inu price teases a 42% rally

How can traders squeeze in more gains as Shiba Inu price teases a 42% rally

Shiba Inu price positively reacted to the United States inflation report, forming a bullish candle on its daily chart. The second-largest meme coin brushed shoulders with $0.00001287 but pulled back to test support highlighted by the 100-day Simple Moving Average (SMA) at $0.00001170.

More Shiba Inu News

CRO price sees bulls using their last ammunition to attack $0.16

CRO price sees bulls using their last ammunition to attack $0.16

Crypto.com Coin (CRO) price action is looking to execute a bullish breakout above $0.16. Ignorant bulls will try to be part of that rally, but that could prove a big mistake as a few risks need to be taken into account to be sure that this rally still has legs.

More Crypto.com News

Solana traders’ focus on $58 as the rally starts to slow down

Solana traders’ focus on $58 as the rally starts to slow down

Solana (SOL) price action is set to close out the week with a mere 7% gain depending on where it ends  Friday evening after the US closing bell. Overall it has been a good trading week from a fundamental perspective and technicals in a supporting role.

More Solana News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP