Cardano (ADA), the public blockchain that has recently gained lots of popularity, has had a bullish day, rising over 10% over the past 24 hours to surpass the native token of centralised exchange Binance Binance Coin (BNB) to take 4th place.
Brief Analysis
Taking a look at the past year of ADA, there is the usual mooning associated with most cryptocurrencies, the crypto world becoming a hotspot for the online world from 2021. ADA begins with a steady rocky track at the beginning, having a slight slump over August 2020 to fall to its original price and continue the track. Towards the end of 2020 ADA begins to gain some momentum, bumping up a bit. The momentum of ADA picks up pace at the beginning of 2021, hitting new records as it spikes upwards and hits a resistance of around 30 cents. From February ADA comes into a stronger momentum, rocketing to above a dollar. The following months ADA fluctuations around the $1.20 mark, a series of rises and dips. From May the resistance is broken, rocketing up to a new ATH (All Time-High) of over $2.20, following by a tumble with the recent market crash. Currently, ADA seems to hit a similar resistance pattern from the previous months starting from March, indicating a possibly repeated trend of a few months resistance and one month bullish.
Zooming into 1 month, ADA takes a 'head and shoulder' trend. In the centre is the 'head' of ADA, its peak and highest point of the month, either side of the graph for ADA being the 'shoulders' or the lowest points of the trend. The resistance point of an oscillating trend is visible from the 20th of May, ADA appearing the still be in this trend. From this pattern, it is expected that ADA will go to a maximum of $1.80 before dropping. However, ADA may break the resistance and storm even higher as its popularity and use accelerate with significant blockchain developments.
Going into 1 day, the bullish period of ADA becomes instantly noticeable. It is a linear trend upwards, with no significant drops or pumps evident. This is surprising to see from the crypto market being majorly volatile, rarely having stable trends. However, it is important to note that ADA has a general stable sense to it, its movements generally not erratic but slow, though at times is considerable like the current bullish day for ADA. Another note to take is that the day period taken by TradingView is only for the current day in UTC (Coordinated Universal Time).
ADA's Progress
Two days ago, ADA developer Input Output Hong Kong (IOHK) revealed that it has successfully put out a testnet that will have great importance in the integration of smart contracts, expected to be done so within the next few months. The tweet of the announcement from IOHK attached below can be found here: https://twitter.com/InputOutputHK/status/1397952781802164228.
The rollout of the testnet Alonzo, after the American math and computer scientist Alonzo Church, means that smart contracts will be onto ADA, thus challenging its competitor Ethereum (ETH). With the young age of ADA yet high popularity, the onset of the following projects will plausibly set ADA further up the leaderboard of crypto, potentially in the following years, even shorter, overtaking ETH to become the new ETH. However, ETH is looking at updating as well and addressing its issues through ETH 2.0, fully releasing towards the end of this year. This makes an interesting competition, underdog ADA going up against crypto king ETH.
With the Alonzo mainnet, it is expected to go on by the end of August. ADA founder Charles Hoskinson stated the following:
The most critical engineering path, integration path, coordination path, and community path are for the next 90 days
This is referring to the Alonzo mainnet, thus indicating the importance it holds to the ADA blockchain.
Inside the IOHK Twitter page, they have recently revealed the release of the ERC-20 converter, a bridge to ADA from ETH. The testnet is announced to be out in June. The tweet is attached below from the following link: https://twitter.com/InputOutputHK/status/1398701979975753733.
Further Reading
The Daily Hodl - Cardano and Other Altcoins To Massively Outperform Ethereum, According to Macro Guru Raoul Pal - https://dailyhodl.com/2021/05/30/cardano-and-other-altcoins-to-massively-outperform-ethereum-according-to-macro-guru-raoul-pal/
The Daily Hodl - Cardano Successfully Launches Crucial Testnet As Smart Contract Integration Approaches - https://dailyhodl.com/2021/05/29/cardano-successfully-launches-crucial-testnet-as-smart-contract-integration-approaches/
Decrypt - Cardano (ADA) Rises 11% On Sleepy Sunday Morning - https://decrypt.co/72314/cardano-ada-rises-while-market-stagnates
Wikipedia - Alonzo Church - https://en.wikipedia.org/wiki/Alonzo_Church
