• IOHK revealed Alonzo, the next protocol update for the Cardano blockchain.
  • The upgrade will build on top of the recent releases like Mary, Allegra and so on to bring smart contract capabilities.
  • ADA price falters but holds up as buyers eye a 78% bull run to record levels.

Cardano’s latest protocol update will be a game-changer and could play a key role in triggering the ascent for the ADA price.

Alonzo promises major makeover

IOHK, the development team behind Cardano, announced the next protocol level update for Cardano, known as “Alonzo.” The roadmap reveals that this upgrade will arrive in the summer of this year.

The recent announcement reads,

Alonzo will add support for smart contracts – digital agreements – to Cardano about four months from now. It will open up opportunities for businesses and developers, by allowing the creation of smart contracts and decentralized applications (DApps) for decentralized finance (DeFi).

The latest announcement comes after Cardano received two critical updates, the multi-asset support functionality and the Plutus platform. These updates will serve as a foundation on which the Alonzo update will be built.

This development will be implemented using IOHK’s hard fork combinator technology and will make Cardano a versatile platform for building smart contracts that fuel business needs.

ADA price falters but stays on track

The Cardano price is trading on the 12-hour chart inside an ascending triangle pattern, which constitutes several higher lows and a series of higher highs connected using trend lines. This technical formation forecasts a 46% upswing, determined by measuring the distance between the first swing high and low.

Adding this measure to the breakout point, aka the triangle’s base at $1.49, reveals the ADA price target of $2.16.

At the time of writing, ADA is hovering above the triangle’s hypotenuse at $1.18. The Cardano price shows that the Bollinger Bands tightly envelop it, suggesting that a highly volatile move will follow.

With the 50 Simple Moving Average (SMA) at $1.16 acting as a significant demand barrier, a bounce seems likely. If buyers push the Cardano price above the flat resistance at $1.49, it will signal a breakout.

In such a scenario, the ADA price could catapult 46% toward the target at $2.16. This upswing is not going to be a cakewalk, mainly due to crucial areas of interest at $1.67, $1.76 and $1.90, which coincide with the 127.2%, 141.4% and 161.8% Fibonacci extension levels, respectively.

ADA/USDT 1-day, 12-hour chart

ADA/USDT 1-day, 12-hour chart

Regardless of the optimism, the bullish outlook will face the ax if the ADA price drops below $1.03, a 15% correction from the current price. Such a move will create a lower low and opens Cardano up to further downside pressure.

If the bearish momentum persists, a 7% slide to $0.96 seems likely.

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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Ethereum price on cusp of massive breakout if key level holds

Ethereum price had a significant 23% correction in the past week but holds above a key support level on the 12-hour chart. The digital asset still has robust on-chain metrics supporting it and aims for a rebound.

More Ethereum News

VeChain consolidates as clear trend fails to establish

VeChain price has been on a tear since the start of 2020 and shows no sign of slowing down despite the recent market crash. Now, VET awaits a volatile breakout from its consolidation to establish a clear trend.

More VeChain News

Chainlink could be the first to recover amid market crash

Chainlink, like the rest of the market, has experienced a significant correction in the past four days However, the digital asset continues to hold above a crucial support level and on-chain metrics show it could be one of the strongest during this correction.

More Chainlink News

Cardano on-chain metrics reveal paradigm shift in nature of investors

Cardano price shows the loss of momentum from the buyers’ end, which has resulted in a breakdown of a critical support level. Now, a continuation of this momentum could ensue as blockchain data reveals a grim future for ADA.

More Cardano News


Bitcoin Weekly Forecast: Institutional wave of BTC adoption follows new all-time highs

Bitcoin price hitting a new all-time high and Coinbase’s direct listing are perhaps two of the most important developments surrounding the pioneer cryptocurrency over the past week.

Read the weekly forecast