ADA, native cryptocurrency of largest Proof-of-Stake blockchain Cardano, has been on a steady uptrend since last week following a major announcement. On August 21st, founder of the blockchain, Charles Hoskinson had announced during a YouTube session that the smart contract feature proposed for Cardano is due for launch by September 12. In light of this, ADA is dancing at the outskirts of a $3 price mark, just after creating a new high of $2.97 on Monday.
As of the previous week, ADA had broken out to register a week-high of $2.55, as it gathered momentum for a stellar performance into the new week. ADA is ranging at the $2.87 zone as of press time. Although just $0.30 short of the anticipated $3, a price correction is expected before it leaps to that price level and beyond, due to overbought risks.
40% Correction Expected on ADA
As indicated by technical indicators, ADA is already at the overbought area, portending a whopping 40% correction on ADA/USD, despite its primed and bullish appearance. ADA’s daily relative strength index (RSI) is already above 80, exactly at 83. An RSI reading beyond 70 is normally considered by traders as being overpriced. As such, they are spurred to sell all or part of their ADA holdings in a bid to lock in maximum profits.
Notwithstanding, the correction is likely not to affect ADA’s impressive run to the top given the nature of the touted Alonzo upgrade. Upon its successful launch, the upgrade will be regarded as a milestone achievement for Cardano, and may likely prop Cardano as a strong rival to Ethereum.
Despite being referred to as ‘Ethereum Killer,’ Cardano is yet to live up to this name- not exactly in terms of price, but in capabilities. Essentially, Alonzo will be a giant stride for the proof-of-stake blockchain, setting it up, as well as its native token, $ADA, for lofty heights in the coming months.
Alonzo will introduce smart contract capabilities to the blockchain in a native programming language entitled ‘Plutus,’ enabling developers to build decentralized applications with roots in the emerging sectors of decentralized finance and non-fungible tokens, both of which the Ethereum blockchain is currently spearheading transforming innovations in.
Staking Addresses Surge in Number
As the momentum continues to spread wide for Alonzo’s September 12 launch, staking pools are already bursting at the seams with plenty of ADA addresses. Earlier in August, the number of staking addresses had leaped to a whopping 660,000 from just 50,000 as of mid-July.
According to Input Output Hong Kong (IOHK), Cardano’s parent company, Alonzo and other notable projects are geared towards providing ADA investors and holders with a wide range of options for their tokens, rather than just selling them off for short term gains.
With the proposed launch only a few days away, a $3 price mark may be too small for ADA to attain. A crop of traders and investors are eyeing a $5 price mark as it continues its bullish streak.
