Cardano (ADA) Makes Strong Gains After Hoskinson’s Update
The bullish sentiment towards cryptocurrencies in general as well as optimism about the upcoming Alonzo upgrade have sent Cardano’s prices soaring lately, driving a daily gain of over 16%. At the time of writing, ADA/USD is trading at around $1.754.
The potential Ethereum killer is gearing up to bring smart contracts to its blockchain, which will drive up its popularity in the DeFi space. Cardano, being a greener, cheaper and faster network than Ethereum could pull away some its sheen as the leading platform that supports DeFi projects.
Over the past three weeks, ever since the mood towards cryptocurrencies improved, Cardano’s ADA has strengthened by almost 60%. Its Co-founder Charles Hoskinson has confirmed in his latest update that the hard fork to the network which will usher in several new features, including smart contracts, will happen before the Cardano Summit scheduled to take place in September. On Friday, the date of the HFC will be revealed and we can expect the bullish momentum in the cryptocurrency to continue at least until then and possibly beyond, as long as the market sentiment supports.
The latest upgrade has futures traders also excited, with aggregate open interest on ADA futures contracts rising steadily after dropping to a low of $285 million back in mid-July. However, professional traders are more cautious about the future outlook for ADA, and could turn more upbeat once the event is completed and its results start showing.
Key Levels to Watch
On the 4-hour chart of ADA/USD, the moving averages and the MACD indicator are exhibiting a strong bullish bias. Although, other technical indicators such as the momentum and Stochastic RSI are suggesting interest building up among sellers, possibly looking for profit-taking at the moment.
Cardano’s price has broken past the pivot point at $1.395 as well as the first two resistance levels at $1.527 and $1.627 respectively. Buyers appear to have set their sight on the key $2 level but before they can test that, they will face more resistance at $1.859.