Cardano Market Overview: ADA/USD impending reversal from $0.055 highs
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Cardano Market Overview: ADA/USD impending reversal from $0.055 highs

  • Cardano bulls remain unbothered of the overbought conditions.
  • Cardano seeks support above $0.050 as focus stays on the key $0.1 resistance.
  • Cardano grinds closer to the implementation of a new smart contract execution model.

Cardano has been among the best performing cryptocurrencies in the crypto space this week. Data provided by CoinMarketCap shows ADA still trading 14% higher since the same time on Tuesday. Cardano currently holds the 10th spot on the market with a market cap of $1. Billion. The digital asset has a 24-hour exchange trading volume of $228 million.

Cardano draws near to smart contract implementation

In a recent paper, released on January 27, Cardano (ADA) revealed how it plans to implement smart contracts in its soon to come Goguen update. However, the release date for the system is certain besides, Cardano is known for its historical delays.

The EUTXO system has been specially designed to improve on Bitcoin’s pure UTXO model. Cardano’s new model introduces a mechanism that has the ability to spit the execution of smart contract into numerous transactions. The model ensures that each transaction output has a data field able to contain arbitrary data linked to a specific smart contract. Moreover, the model makes sure that specific chain outputs utilize a similar contract node by use of a concept referred to as contract continuity.

Cardano price analysis

Cardano has been very focused not to lose sight of the psychological level at $0.1 even though it has only managed to trade halfway there. It is essential to note the significant progress ADA has made since opening the year 2020 at $0.032. Initially, there was a stubborn resistance at $0.0475, however, following the surge on Monday, ADA climbed to higher levels, stepping above $0.050.

At the time of writing, ADA is dancing at $0.0554 and digging higher into the Bollinger Band upper curve resistance. The RSI trend within the overbought shows that the bulls are unbothered by the overbought conditions and are likely to pull ADA towards the coveted $0.1 level. On the other hand, former resistance zones will work as key support areas, including $0.0525, the BB 4-hour middle curve at $0.0475, $0.0425, $0.0375 and lastly $0.0325.

ADA/USD 4-hour chart

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