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- On Friday, Cardano’s ADA coin made a victorious comeback to the $2 threshold, with weekly gains above 50%
- Impending technology enhancements, most notably smart contracts on Cardano, followed the increase, which prominent trader Lark Davis called a highly positive trigger
- This week, Cardano isn’t the only cryptocurrency fighting major resistance levels. Following a strong surge that saw it hold $40,000 as new support, Bitcoin (BTC) is now focusing on $47,000, a big sell wall that has held $50,000 out of reach thus far
On Friday, Cardano’s ADA coin made a victorious comeback to the $2 threshold, with weekly gains above 50%. According to data, the ADA/USD pair swiftly rose on Friday after breaking over a strong barrier. The pair had circled $2.07 at the time of writing and was still climbing, adding $0.25 overnight. This was ADA’s highest price since May 18, when the cross-crypto price collapse triggered by China’s mining shakeout began.
The upgrade to Cardano’s mainnet, scheduled for full release on September 12, completes the Alonzo suite of changes, which have been gradually deployed over the previous several months and are separated into Blue, White, and Purple phases. The most recent, Alonzo Purple, started its testnet phase earlier this month, causing the network’s native currency, ADA, to jump more than 20% in 24 hours.
Impending technology enhancements, most notably smart contracts on Cardano, followed the increase, which prominent trader Lark Davis called a highly positive trigger. A mere 6X would put it on par with Ethereum in terms of market cap, he said, predicting increases of several hundred percent once the smart contract functionality goes online.
It’s possible that Cardano will be 50X one day, but given the market cap, it’s not very likely in the immediate term. That significant price movement continued in anticipation of Friday’s release, reaching a high of US$2.20 on Sunday – a gain of more than 50% in less than a week. It was trading at US$2.15 at press time, having hovered at that level for the previous week before falling somewhat. With the spike in interest, the fourth-largest cryptocurrency by market valuation, at roughly US$69 billion, is closing in on Binance Coin, which is in third place at about US$71 billion.
This week, Cardano isn’t the only cryptocurrency fighting major resistance levels. Following a strong surge that saw it hold $40,000 as new support, Bitcoin (BTC) is now focusing on $47,000, a big sell wall that has held $50,000 out of reach thus far.
Meanwhile, despite several months of poor performance, optimism in the probable return of profits among decentralized finance tokens remains high. Smart contracts, like the minting of non-fungible tokens, enable decentralized finance apps to function on networks and have mainly been the realm of the Ethereum network until now. Smart contracts will be integrated into Cardano for the first time, bringing both features to the mainnet for the first time. It will also have an ERC-20 converter, which will allow ETH tokens to function on the network.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
