on the crypto
Amid much excitement, the Cardano team kept their promise and finally announced the launch of the long-awaited smart contract feature on Friday night. This major update is expected around September 12th.
The Cardano team has recently been busy releasing updates, which shows that a lot of work has been done to ensure a smooth transition. This has greatly excited the Cardano community, as well as cryptocurrency traders, who have been relentlessly buying the ADA token since the team announced on August 6 that Alonzo Purple, the final testing phase, was ready to go.
Following the August 6 announcement, Cardano has initiated user integration and launched the third and final phase of its Alonzo updates, which will enable the creation of smart contracts on the Cardano network. This resulted in the price of the ADA token skyrocketing from $ 1,40 to over $ 2,25, an increase of more than 50% in one week.
So the question arises: is this rally sustainable?
There may be more good news for the ADA token as, in fact, such an important milestone that it finally materializes is news to be optimistic about and they are not the only ones.
Strong growth in developer activity
Many projects are already under development thanks to the smart contract in testnet. Developer activity has increased significantly since the start of Alonzo's test network, with the number of commits on Cardano reaching # 6 on Github for several days since August 11, when Alonzo Purple began integrating projects. The noteworthy problem here is that the number of confirmations is steadily increasing, and on August 600 it had nearly 545 confirmations, up from XNUMX just two days earlier. This shows that more and more developers are working or trying to build something in Alonzo, which is a very encouraging start.
The rise in the ADA price was supported by solid fundamentals with growth in developer activity showing adoption.
Clear bullish signs on the technical charts
The rise in prices was also accompanied by a good increase in volumes traded on the stock exchange, a sign of a sustainable recovery. While a sudden, sudden burst of volume is not a good thing, the steady increase in ADA's volume is a good sign that more investors are piling up with each higher price move.
With the ADA's approval for listing on Japanese exchanges recently, this opens the token to a new one market of over 100 million people who previously could not buy. Japan is the third largest economy in the world and its population has one of the highest cryptocurrency acceptance rates in the world.
Furthermore, the small power supply from the ADA is also one of the reasons why the price may continue to skyrocket. Currently, a whopping 71 percent of the ADA's total supply is invested in securing the network. This is by far the largest percentage of tokens wagered on any cryptocurrency project.
This share of staking it has increased by 11% since the beginning of June, when the Cardano network exceeded the 600.000 address mark for the first time. In the run-up to Alonzo's release, the network had grown to 749.400 unique addresses at the time of this writing, and continues to grow.
An important conclusion we can draw from the stakeout metrics analysis is that no one is selling their ADA token, even after a huge price hike last week. Cardano's surveillance program has an unlocked period; an investor is free to stop betting at any time to sell his chips. The fact that the group continues to grow despite the ADA's phenomenal price hike speaks volumes about the long-term commitment of the Cardano community.
It also means that there aren't many ADA tokens circulating in the market to buy and sell, exacerbating the effects of an upward contraction in price.
All of the above factors point to explosive times for the ADA token and only the Relative Strength Index (RSI) is in an extreme overbought zone at the moment, as the only obstacle that could slow this train. The price could encounter some resistance and consolidate as it approaches its all-time high of $ 2,47 in mid-May, which will be a good chance for its RSI to cool down a bit before it eventually breaks the all-time high.
However, as we approach the launch date of the Core Grid Smart Contract, some issues may still affect the ADA's ability to continue growing. In the unlikely event of complications related to the hard fork on September 12, the price could suffer.
Furthermore, how the ADA token will be used in smart contract applications could be an obstacle to the continuation of the ADA rally as it is not yet widely known whether the ADA token will be used to run applications on the Cardano network.
However, until user reports start raining after Cardano's smart contracts go live, the hype may continue to increase ADA after its RSI, which is at a ridiculous 97, declines.
Even though the Hard Fork is still nearly a month away, operators don't have to worry about the clutter as the Cardano Foundation has plenty of activities planned to keep the excitement alive.
Cardano brings a lot of marketing for greater adoption
To celebrate the transition to the era of smart contracts, Cardano has prepared a summit. Called Cardano Summit 2021, it will take place online from September 25-26, approximately two weeks after the hard fork. The event is proud to be global as it will be held across 7 continents, with a Cardano Hub each, has 20 community-driven events and is expected to be attended by at least 50.000 people.
The team's marketing efforts to host the event are intense, with many Twitter updates promoting the event, including opening invitations for community members to host local meetings in their home countries to be part of the summit. It seems that a carnival is coming, which can generate greater awareness for those who still do not know the token or its update. This could potentially bring in another group of new buyers.
In a booming market, with a major upgrade, a good adoption history, a severe supply / demand imbalance, and a host of marketing events, it seems like the time has come for the ADA to take off.
About Kim Chua, a market analyst at PrimeXBT:
Kim Chua is an institutional trading specialist with a successful track record spanning major banks including Deutsche Bank, China Merchants Bank, and others.
Over time, Chua launched a hedge fund that consistently produced triple-digit returns for seven years. Chua is also an educator at heart who developed her trading curriculum to pass her knowledge on to a new generation of analysts.
Kim Chua closely follows traditional and cryptocurrency markets and is eager to find future investment and trading opportunities as the two very different asset classes begin to converge.
