The Alonzo hard fork will make way for the creation of decentralized apps within the Cardano blockchain. The momentum in the ADA short-term trend is quite well developed, with no signs of exhaustion.
Many people have their eyes on Cardano (ADA) rather than on either Bitcoin or Ethereum. That is because its price has shown excellent performance, managing to reach new all-time highs.
ADA is trading at around USD 2.72 and has accumulated a profit of 30.9% in the last week. Furthermore, it has achieved a market capitalization above USD 87 billion, according to CoinGecko.
Its performance places it in the 3rd position of the ranking, more than USD 10 billion above Binance Coin.
The upcoming support for smart contracts on the Cardano network has contributed to the positivity toward the cryptocurrency.
The Alonzo update will occur on September 12th, opening the to create decentralized apps within the Cardano blockchain. That news has fueled the cryptocurrency rally throughout the year, and the closeness of the date has accelerated it.
Cryptocurrency investor David Gokhshtein predicts that ADA could have further escalation before Alonzo’s release.
Technical Analysis of Cardano as the Price Reaches New Highs
Analysts have been forecasting the medium/long-term momentum that drove the price of Cardano much higher.
At the moment, there is considerable momentum that shows no signs of exhaustion. The strength of the trend seems to indicate that it is feasible to expect higher gains.
However, the Cardano (ADA) correction is closer due to the steady price increase and new highs. That means it is not the time to wait to sell in the face of such strong bullish momentum.
What the Cardano Daily Chart Indicates
There is also momentum in the ADA short-term trend, which is quite developed and shows no signs of exhaustion.
The cryptocurrency will very likely reach a price of USD 3 in the next few hours. Besides, a new correction will be closer to occurring with each rise.
The upcoming release of Alonzo could continue to influence ADA for three more weeks. That would happen even without the growth that the network could see later, as there are new decentralized apps in that blockchain.
Minor setbacks could be enough for Cardano to continue reaching new all-time highs in the short term.
New Hard Fork of the Cardano Network
Cardano, the network that competes directly with Ethereum, recently announced that the Goguen update would soon conclude. That will bring smart contracts and DApps to the project ecosystem. The last phase of Goguen will be the activation of the Alonzo Purple hard fork.
Of course, the fork must happen successfully so that the network can attract new investors who are still waiting for the scalability solutions on Ethereum. Therefore, there will be an extremely notable increase in its price during the next few days. The FOMO (Fear of Missing Out) has invaded many investors, leading them to purchase even more ADA tokens.
The hard fork should occur on September 12th, according to the CEO of Cardano. However, several aspects could lead to rescheduling the completion of Alonzo.
By Alexander Salazar
