Alonzo Hard Fork on September 12: Cardano (ADA) to Extend Bullishness
Cardano (ADA) appears to be recovering from its slide early on Monday after rallying by more than 50% over the past week and becoming the
Cardano (ADA) appears to be recovering from its slide early on Monday after rallying by more than 50% over the past week and becoming the fourth largest cryptocurrency by market capitalization. At the time of writing, ADA/USD is trading at around $2.16, holding above the key $2 level it breached in the previous week.
Optimism over the upcoming Alonzo upgrade has seen the potential Ethereum killer post one of the strongest rallies among leading digital currencies lately. Last Friday, Cardano’s Co-founder, Charles Hoskinson, confirmed that this upgrade will roll out on September 12, giving the blockchain network the capability to support smart contracts and making it more powerful to take on its competitors in the DeFi space.
Hoskinson’s confirmation of a timeline for when the much awaited features will be added boosted investor confidence in his blockchain further, taking ADA’s price above the key $2 mark for the first time since the crypto market crash which happened in mid-May this year. The positive sentiment is likely to continue driving up interest in Cardano and taking its value higher in the coming weeks leading up to the Alonzo hard fork.
The Alonzo hard fork is not only a great news for developers and users of the blockchain network but is also likely to drive up institutional interest in investing in the ADA token as well. While there is no Cardano-specific ETF just yet, Grayscale’s recent decision to add it to its Digital Large Cap Fund can encourage more organizations to look at offering this in their portfolios as well.
According to a leading crypto analyst and influencer, Elliot Wainman, the bullish momentum in ADA is likely to extend into the coming sessions. In a recent video posted by him on YouTube, “Charles Hoskinson dropped the bomb that they actually have a fixed date for the enabling of smart contracts on Cardano… Now people will start using ADA to access the wild universe that exists on top of Cardano.”
Key Levels to Watch
On the technical front, analysis of the 4-hour price chart of ADA/USD reveals a strong bullish bias among the moving averages. Although, leading technical indicators MACD and momentum are suggesting some interest among sellers as well.
Cardano’s price is holding above the pivot point at $1.93 but has some distance to go until buyers encounter resistance at $2.48. This suggests the bullish momentum can pick up and continue smoothly in the near-term as long as the sentiment towards cryptocurrencies in general remains optimistic.
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