- The Alonzo upgrade did very little in protecting the ADA price from falling 8% between Sunday September 12 and Monday September 13.
- The Cardano price correction continues as it drops by approximately 1.3% over the last 24 hours.
- ADA’s bullish continuation crypto signals persist increasing the odds of Cardano continuing its uptrend.
The successful launch of the much-awaited and publicized Cardano Alonzo hard Fork on Sunday September 12 did little in preventing the ADA from falling. Despite the correction, Cardano bullish technical factors remain.
The Alonzo hard fork upgrade introduced smart contracts functionalities onto the Cardano blockchain allowing it to enter the world of Decentralized Applications (dApps) and Decentralized Finance (DeFi). The implementation of the Alonzo hard fork is implemented now allows users to create and deploy their unique smart contracts on the Cardano network, giving way to native dApps.
The development team behind Cardano expects dozens of projects that deployed smart contracts on the testnet to increase on-chain activity on the mainnet in the following months.
ADA price ignores Alonzo upgrade, suppliers selling the news?
The ADA/USD price fell by 8% on Monday in tandem with other major cryptocurrencies despite the successful roll-out of Cardano’s smart contracts following the Alonzo upgrade.
Cardano price dropped by as much as 12.91% to lows of about $2.25 on Monday, perhaps due to profit-taking among suppliers following ADA’s over1,200% price rise in 2021.
It was expected that Cardano’s Alonzo hard fork launch would bolster the ADA price to higher with users tapping into the booming decentralized finance (DeFi) and nonfungible token (NFT) sector as they get an alternative to the and costlier transaction fees on Ethereum. This has not been the case as the Cardano price continues to drop.
At the time of writing, ADA/USD price teeters around $2.38, dropping 1.3% over the last 24 hours. Cardano continues to be underpinned by the $2.57 resistance level. A break out above this level could see ADA rise to tag $2.66 major resistance level. A clear breakout above $2.66 could see Cardano re-test the September 02 ATH at $3.15 with the rise towards the $5.0 psychological level becoming a possibility.
ADA/USD Daily Chart
Cardano’s bullish outlook is accentuated by the the upsloping moving averages and the position of the MACD in the positive region above the zero line. Also note that the Cardano sits on strong support areas provided by the 50-,100- and 200-day SMAs downward.
However, if the bears tighten their grip on ADA and it slides below the immediate suport at $2.30, Cardano price could drop further to tag the 50-day SMA at $21.66, the 100-day SMA at $1.75 and the 200-day SMA around $1.57 respectively.
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Nancy Lubale
