Cardano price looks primed to breakout to new all-time highs
- Cardano advances unabated on its path towards decentralization.
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The so-called “Ethereum killer” will reach 100% decentralization by the end of March.
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ADA price is holding key support at $1.10 as volume remains light.
Cardano’s protocol moves closer to full decentralization while ADA price awaits for volatility to strike back.
100% decentralization by April
IOHK, the development company behind Cardano, announced that the network is 90% through the goal of having all blocks being created by community stake pools, putting an end to the federated nodes.
If achieved, It will signal full governance by the stakeholders and, hopefully, for the collective good.
The transition to decentralization will provide the foundation for more decentralized finance (DeFi), stablecoins, and non-fungible tokens (NFTs).
The announcement will further add to the interest in Cardano’s native cryptocurrency, ADA. The cryptocurrency has rallied over 800% since the December 2020, making it one of the biggest gainers over the last few months.
ADA price at an inflection point
In trading, there is a saying that goes, “price contraction leads to price expansion.”
ADA’s 12-hour chart is a clear example of price contraction as it awaits the confirmation of decentralization at the end of March.
Over the last 5 days, Cardano price has traded sideways in a very tight range on low volume and has pushed through the February 26 downtrend line. The price action has shaped a small descending triangle.
ADA/USD 12-hour chart
ADA is in a timely position for purchase, and the volume compression signals that selling pressure has been exhausted. A breakout above $1.346 would confirm that the cryptocurrency is ready to test the all-time high at $1.485 and potentially target $1.7615.
On the downside, a daily close below $1.0375 would signal a bearish resolution to the tight consolidation and leave Cardano price exposed to a decline to $0.8043.
Author
FXStreet Team
FXStreet
