Cardano's price action seems to be evolving around the upcoming Alonzo hardfork.
Key Takeaways
- Cardano has become the third-largest cryptocurrency by market cap after breaking $2 earlier today.
- Charles Hoskinson is expected to announce the date smart contracts will launch on Cardano as part of the Alonzo hardfork today, which may explain the rise.
- Further buying pressure could see ADA climb to new all-time highs, but a postponement could lead to a selloff.
Cardano has skyrocketed as market participants await a protocol upgrade that will expand the network’s utility.
Cardano Moves Past $2
Cardano has surged nearly 20% in the last 24 hours.
ADA is trading above $2 for the first time since May, which puts its market cap above $65 billion. It’s overtaken Tether to become the third-largest cryptocurrency, behind only Bitcoin and Ethereum.
The sudden upswing seems to be fueled by mounting speculation around Cardano’s smart contract functionality. Founder Charles Hoskinson is expected to reveal further details about Cardano’s forthcoming Alonzo hardfork today, which includes plans to launch smart contracts on the network. Cryptocurrency enthusiasts have turned bullish on the token’s future price action.
Behavior analytics platform Santiment reveals that the recent upward impulse was supported by a spike in buying pressure across the board. Cardano’s trading volume has skyrocketed by 250% over the last four days.
Another uptick in buy orders may signal the continuation of the uptrend, potentially pushing the asset into price discovery mode.
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows that nothing stands in Cardano’s way to new all-time highs. The only considerable supply zone lies between $2.15 and $2.20. Around this price level, more than 20,000 addresses have previously purchased over 150 million ADA.
A decisive close above this resistance level could see market participants rush to cryptocurrency exchanges to buy in, consequently pushing prices further up.
Investors must note that the cryptocurrency community expects Cardano’s Alonzo hardfork to occur in early October. An unanticipated delay in the protocol upgrade could lead to disappointment, encouraging market participants to sell.
Under such unique circumstances, the IOMAP reveals that the most significant support level sits between $1.72 and $1.79, where over 100,000 addresses hold nearly 2 billion ADA.