Cardano (ADA) once again outperforms Binance coin to become the 4th largest currency in the crypto market.
At the time of this writing ADA trades at $1.42, accumulating a gain of 5.17% in the last 24 hours and 14.40% in the last 7 days.
Thanks to the recent price jump, the market capitalization is now $45,484 million, making it the 4th largest in the market.
How did Cardano (ADA) achieve this position in the crypto market?
ADA’s huge price increase has gone hand in hand with its community’s expectations that the Cardano network will become the most scalable in the ecosystem, far surpassing Ethereum.
With the recent implementation of the Shelley update positivism has been on the rise, due to improvements in staking and delegation.
The main objective of the continuous improvement of this network is to make Cardano the leader in the space of decentralized applications.
The next update will be named Alonzo, which entered the testing phase on May 27 of this year. On June 11, the IOHK development team assured that Alonzo could already run smart contracts.
The positive outlook that this cryptocurrency shows is the cause that there are already more than $30,000 million staked on the Cardano network. This amount of money means approximately 71.69% of the total circulating ADA tokens, which means a big impact on the shortage of coins.
What is Cardano staking for?
Staking in Cardano serves to secure the network. For users to lock their coins in the protocol, they are given a paid incentive in ADA.
Today the Cardano network (ADA) is by far the one with the most staking value in the entire crypto ecosystem. To give you an idea, Ethereum being the 2nd largest network in the market, has about $12.2 billion blocked in staking.
As if these fundamentals were not enough, yesterday the cryptocurrency investment fund Grayscale, welcomed ADA, making it the 3rd largest stake in Grayscale’s Digital Large Cap Fund.
The growing demand for coins with a network that encourages users to decrease supply, can only generate one thing: a price increase in the medium/long term.
ADA technical analysis
The same strength that is observed in Cardano’s infrastructure, is noted in the weekly price chart, where we see that the uptrend has remained intact, even with all the widespread losses in the market.
ADA’s price recently rejected support at $1.3120, pointing to the possible bottom of the fall. The continued rejection of low prices tells us that sellers are exhausted, and that we are very likely to see new highs soon.
This week the price is trying to escape above a downward diagonal resistance, which has been manufactured during the correction. Achieving it will be a good sign of bullish resumption.
Key levels for Cardano pricing
In the daily chart of the crypto Cardano (ADA), we see that a short-term bullish succession has been created.
Today the price is defying the immediate resistance, located at $1.42. Crossing it will give way to a major recovery. However, as long as resistance remains at $1.80, we may still see short-term problems.
To think of sales, support at $1.32 must be breached. But, due to strong buying pressure in the area around $1.00, the bearish intent could quickly be reversed.
All our publications are informative, so in no case should they be followed as investment advice.
Relate
