Cardano Rallies Ahead of Upcoming Alonzo Upgrade

Azeez Mustapha
9 August 2021 | Updated: 9 August 2021

Cardano (ADA) is in recovery mode on Monday following a steep decline from the $1.5000 axis on Sunday. The fifth-largest cryptocurrency now enjoys a bullish bias, as the broader cryptocurrency sentiment remains bullish.

The bullish momentum surrounding Cardano also comes from the highly-anticipated Alonzo upgrade, which should go live in a few weeks. Last week, IOHK revealed that the Alonzo (Purple) hard fork had gone live and operationalized its testnet. The holding company also provided a timeline for the HFC (hard fork combinator), noting that the network could witness the crucial Smart Contract capability rollout.

Cardano should possess the necessary tools to become a tough competitor with Ethereum in the DeFi sector with the upcoming upgrade. The blockchain’s Co-founder, Charles Hoskinson, asserted that once the HFC takes place, developers can facilitate Smart Contract on the network using Plutus code.

Many analysts are optimistic about the upcoming upgrade. The Head of Coin Bureau, who goes under the pseudonym ‘Guy,’ noted that he expects ADA to get as high as $4 -$5 by the end of this year. However, Guy cautioned that the proposed uptrend largely depends on a healthy bullish movement in the industry’s leader, Bitcoin.

Key Cardano Levels to Watch — August 9

Following a peak near the $1.5000 resistance over the weekend, ADA suffered a minor correction to the $1.4000 level. However, bulls appear to have regained control and have driven the price above the $1.4580 area.

ADAUSD – 4-Hour Chart

That said, we expect a retake of the critical $1.5000 level over the coming hours, as the broader market sentiment remains dominantly bullish. Failure to clear the $1.5000 level could trigger a consolidation between $1.5000 and $1.4000 (where our ascending trendline intersects with the $1.4000 support and the 50 SMA).

Meanwhile, our resistance levels are $1.500, $1.5500, and $1.6000, and our support levels are $1.4500, $1.4000, and $1.3500.

Total Market Capitalization: $1.82 trillion

Cardano Market Capitalization: $46.7 billion

Cardano Dominance: 2.56%

Market Rank: #5

 

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Azeez Mustapha

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.