Cardano (ADA) ascends 20% in 24 hours as rival Ether’s rally slows down

Cardano ADA Alonzo Purple
image from medium.com
  • ADA exhibits strong bullish incentive as it surges towards the $2 benchmark value.
  • The token outpriced competition following a significant milestone in the upcoming smart contract upgrade.
  • Cardano adoption continues with an important listing overseas.

YEREVAN (CoinChapter.com) — Cardano decentralized public blockchain’s native token ADA posted better gains than its rival Ethereum’s native asset Ether (ETH) in the past 24 hours.

The ADA/USD exchange rate surged more than 18% in the past 24 hours to reach $1.82 for the first time in more than two months. In comparison, Ether only climbed by 2.5% but reached its three-month peak of $3,248 in the early European session.

Traders’ bid for Ether slowed down after it closed above $3,000 late last week, in a rally that appeared in the wake of Ethereum’s milestone software upgrade. Dubbed as the London hard fork, the update made Ether deflationary for the first time in history through a fee-burning mechanism. In addition, the scarcity feature prompted its prices upward.

On the other hand, ADA also inched higher in tandem, albeit its gains were limited compared to Ethereum’s. For instance, both ADA/USD and ETH/USD bottomed out sessional on July 21; but while the former rallied by up to 75%, the latter’s maximum rebound came out to be around 89%.

Cardano technical outlook

ADA sped toward its psychological resistance target of $2 during its Wednesday price rally. Nonetheless, the strong upside move also flashed some warning signs in the form of an overbought relative strength index (RSI). At 81.03, the RSI alerted about ADA’s excessive valuation, noting that traders might start unwinding their bullish positions for interim profits.

ADA on a strong rally. Source: ADAUSD on TradingView.com
ADA is on a strong rally. Source: ADAUSD on TradingView.com

In detail, the RSI indicates the overall momentum of a stock or digital asset. The reflection of trader’s perception of that momentum directs their behavior. When the RSI rises over 70, it flashes a red flag to the investors that it might be time to withdraw, as the asset is overbought.

Also read: Coinbase whales behind the latest Bitcoin bull run towards $47K, data suggests.

The said correction does not necessarily constitute a trend reversal in the Cardano markets. The Santiment analytical platform agrees, citing ADA’s healthy bullish bias over the years.

Also read: Cardano Founder Charles Hoskinson says Peter Bradt’s ADA prediction “makes no sense.”

Moreover, the ADA/ETH exchange rate has also soared 22% in the past two days. The surge signifies a growing number of traders who prefer Cardano over Ethereum, as the former promised greater returns.

Cardano vs. Ethereum. Source: ADAETH on TradingView.com
ADA vs. ETH. Source: ADAETH on TradingView.com

Fundamentals

The Cardano ecosystem is in the middle of a large upgrade. On a larger scale, the update aims to launch smart contracts on the mainnet, thus making Cardano a more serious competitor to Ethereum.

The infographic below shows the full roadmap, including the development plans for the next few years. The ecosystem is currently in the Goguen era, which will result in the deployment of smart contracts. The blockchain company further divided Goguen into three stages: Alegra, Mary, and Alonzo. The latter has three more subdivisions: White, Blue, and Purple.

Cardano roadmap. Source: easycrypto.com
Cardano roadmap. Source: easycrypto.com

Both White and Blue phases have been a success, and Cardano moved into the Alonzo Purple stage, as the company announced on August 6.

The Purple upgrade will be the last test launch before deploying smart contract solutions onto the mainnet. Moreover, Input-Output Hong Kong (IOHK), the blockchain engineering company behind ADA, will hard fork the network and open the Alonzo Purple testnet to any willing developer to join.

Cardano has also gone more global, with broader adoption overseas. In addition, the company received a big boost to its legitimacy with BitPoint Japanese crypto exchange listing. BitPoint, and the Japanese market in general, is notorious for its high standards for cryptocurrency listings.

The blockchain company checked all the required regulatory approval points and expanded its exposure to the Japanese market. Overall, the bright prospects of the Cardano ecosystem will help the company deliver solid returns to investors in the future.

Also read: Chuck Schumer f***ed us all, Cardano founder on the crypto tax bill.

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