Cardano (ADA) was on fire recently. At this point, it’s no surprise that the asset is generating massive returns in just a short amount of time. With so many big things planned for the project, the price has continued to rise. Now the ADA has broken a critical point of resistance in its race to the top. The coin had plummeted from $ 3 following the knockdown from its initial resistance point test. But has successfully broken through this barrier.
ADA successfully retests $ 3 | Source: ADAUSD on TradingView.com
In the early hours of the morning, the price of the digital asset hit a new all-time high of $ 3.10. Before you hit an apparent roadblock and correct back down. Though this downward revision doesn’t look negative for ADA.
A downward correction is typical of assets that have rallied in a short period of time. Basically, you give the market time to make up for the valuation of the asset. The correction in ADA caused it to fall back towards $ 3. However, this point acted more as a jumping-off point for Cardano, which brought the price back to a more comfortable resting point for the time being.
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Still, the asset looks poised for another rally. Given the current momentum and general market sentiment surrounding ADA, it won’t come as a surprise to see it hit $ 4 next week. The growing interest has led to an accumulation of wealth. Future use cases will set Cardano on the path to becoming one of the most widely used blockchains in space. This gives its native asset ADA the boost it needs to grow fast enough to break the $ 4 mark.
Factors driving Cardano (ADA) towards $ 4
Most of the momentum ADA has seen is due to the expected upgrades coming this month. The team behind the Cardano project announced in August that the final upgrade, the Alonzo Purple Hard Fork, which will bring smart contracts to the network, will be released on September 12th. This will bring the blockchain to a level where it can compete with Ethereum, the leading smart contracts platform.
With users assuming they can do decentralized financial services and mint NFTs on the network, investors have put money into ADA. We expect the price to skyrocket both before and after this final upgrade is announced.
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Cardano founder Charles Hoskinson said the project is on the right track. And Cardano has received the green light from its shareholders to release Alonzo Purple as planned. With less than two weeks to go to launch, the price is expected to continue to recover, with the current rate safely pushing ADA to $ 4 before the smart contracts ability is released. After that, the introduction of the network will drive the price even higher due to its new use cases.
Featured image from 123RF, chart from TradingView.com