The rise of Cardano (ADA) isn’t just from Bitcoin’s rally
Cardano is a blockchain platform that enables transactions with its native cryptocurrency, ADA, while allowing developers to build secure and scalable applications. Cardano is also involved with various payment programs, and it’s worth noting that many projects have been built on the Cardano network.
To make transactions and engage in governance, Cardano users need to purchase ADA. Ownership of ADA determines who gets to be a slot leader, add new blocks, and receive transaction fees. Additionally, ADA tokens are used for voting on software policies like inflation rates, incentivizing holders to maintain ADA’s value.
While Cardano (ADA) has benefitted from Bitcoin’s surge above $60,000, its price increase is not solely tied to Bitcoin’s rally. The rise also mirrors substantial progress within the Cardano ecosystem, including developments in its core technology, smart contracts, scaling solutions, and governance efforts.
In terms of core technology, the ledger team made significant strides by implementing reference script support for Plutus V1 in Conway. This, alongside bug fixes for stake distribution errors, strengthens the blockchain’s infrastructure. Meanwhile, the Plutus team has made progress with smart contract implementation, including launching the Plutus contract blueprint for Plutus Tx and refining the quick start guide to make onboarding smoother for developers.
The Cardano ecosystem is set for growth and development
Cardano has made substantial progress with its scaling solutions. The Hydra team has addressed significant bugs, refined fee estimation processes, and integrated transaction metadata enhancements. Additionally, the Mithril team launched an update featuring important improvements such as better stake distribution support and bug fixes. On the governance side, the SanchoNet team released a patch to resolve compatibility issues and simplify wallet upgrades.
Cardano has also seen a 90% rise in the creation of new wallet addresses, signaling a surge in network activity and increasing interest in the platform. This surge in activity helped Cardano reach a major milestone—its total blocks reached 10 million on March 01.
Another key development is that Cardano is preparing to launch its flagship fiat-backed stablecoin, USDM, set for release on March 16th. As ADA continues to attract investors, crypto analysts agree that the Cardano ecosystem is on track for further growth and development within the expanding cryptocurrency landscape.
A closer look at the technical analysis of Cardano (ADA)
Since February 01, 2024, Cardano (ADA) has risen more than 40%, from $0.48 to a high of $0.76. The current price of ADA is $0.72. As long as ADA’s price stays above $0.60, we can consider it in the “BUY-ZONE,” and a trend reversal is not expected.
Key support & resistance levels for Cardano (ADA)
In the chart (since May 2023), key support and resistance levels have been identified to help traders predict price movements. According to technical analysis, Cardano’s price movement is still controlled by bulls. If ADA moves past $0.80, the next resistance levels could be $0.90 or even $1.
The key support level stands at $0.60. A break below this level would be a “SELL” signal, and the price could drop to $0.55. A drop below $0.50, which is also strong support, could take the price to the $0.40 mark.
Reasons for the Cardano (ADA) price rise
The recent increase in ADA trading volumes suggests growing confidence among investors. Based on technical indicators, ADA still has room to rise. If it breaks above $0.80, the price could soon reach $1.
Traders should consider that ADA’s price tends to follow Bitcoin’s price trend. If Bitcoin reaches $65,000, ADA may see a significant price increase as well. Furthermore, the progress within the Cardano ecosystem, including advancements in core technology, smart contracts, scaling, and governance, is also positively influencing ADA’s price.
Indicators pointing to a potential decline in Cardano (ADA)
Investing in ADA is inherently risky and unpredictable. Although positive developments could drive significant price surges, there are also risks. ADA’s downturn can be caused by factors like negative rumors, market sentiment, regulatory shifts, technological changes, and broader macroeconomic trends.
Given the volatility of ADA, investors must exercise caution. If the $0.60 support level breaks, ADA could fall to $0.50, a significant drop.
Прозрения от анализатори и експерти
Cardano (ADA) has followed Bitcoin’s trend and seen a 40% price increase since February 01, 2024. However, ADA’s price surge is also a result of significant progress within the Cardano ecosystem.
Cardano has experienced a 90% increase in new wallet addresses, indicating growing network activity and interest. Additionally, ADA reached a historic milestone with over 10 million blocks on March 01.
As ADA continues to attract investors, experts agree that Cardano’s ecosystem is on track for significant growth. Notably, crypto analyst Dan Gambardello suggested that the recent milestone of reaching 10 million blocks could drive further gains for ADA in the coming weeks.
Опровержение: Cryptocurrencies are highly volatile and speculative. Only invest what you can afford to lose. The information provided here is for educational purposes and should not be considered as financial or investment advice.
