The valuation of Cardano (ADA) continues without respecting limits or resistance. The price of cryptocurrency soared over 13% this Monday (23) and has already accumulated a 37% increase in just two days. At the time of writing this text, an ADA is worth $2.92, or R$15.76 at the current price. In other words, the ADA has gone from $2.50 to almost $3.00 and, in fact, analysts already believe that cryptocurrency will cross that barrier. Now, the ADA is in a price discovery region where new resistances are coming.
“Historical moment”
First, the market is showing strong signs of an almost uncontrolled euphoria. Therefore, it must be recognized that there is a risk of falls in the price of the ADA. Brazilian trader Augusto Backes, in his daily live, highlighted that the moment is similar to the early years of Bitcoin (BTC). “I think we will have another four months of high, with lateral accumulations and a lot of euphoria. What we’re experiencing is something like the second or third year of the BTC,” said Backes. Unlike other traders, Backes doesn’t agree with the common view on price discovery. For him, the moment is precisely for the continuation of the high in which the ADA will be able to seek the region of US$ 3.50 as the next resistance. If this trend is confirmed, the ADA can still earn profits in excess of 17% even for those who buy at the current historical high. This is the first of the three Fibonacci regions predicted in the analysis, whose maximum could exceed $6.00.
September: launch month
The month of September will have an important date for Cardano: September 12th. This is the date on which, according to the launch roadmap, smart contracts will be implemented in the network. The change will come together with the Alonzo update, which will be installed the same day. Alonzo is an update that enables the implementation of smart contracts functionality in Cardano. Once that happens, anyone will be able to create and deploy their own smart contracts at Cardano, paving the way for decentralized native applications (dApps). While the update is long overdue, other people question Cardano’s timing. After all, the network was launched almost five years ago and still doesn’t have as advanced technologies as its competitors. Meanwhile, blockchains like Binance Smart Chain (BSC) and Solana (SOL) have support for decentralized finance (DeFi) and smart contracts, even though they are much newer than Cardano. On the other hand, network defenders justify these delays by stating that Cardano is focused on quality. That is, the network gives up speed in launching so that projects can be implemented safely and without errors. “Cardano always comes with the premise of being slow in development, but that this development is built on the basis of the absence of bugs or usability problems”, highlighted Backes. Read also: City in Argentina becomes the first 100% crypto in Latin America Read also: Profits from Axie Infinity will be taxed in Philippines, determines local Economy Minister Read also: My DeFi Pets announces update with VRF technology from Chainlink
