Cardano’s price potential increases with the launch of the Ethereum Bridge, ghost transactions and millions of NFTs

  • The Cardano price is likely to slow down and return to the $ 0.516 support level after rising 55%.
  • A jump around the aforementioned level can trigger an additional 52% uptrend.
  • A four-hour candlestick close to $ 0.471 will invalidate the bullish thesis for the ADA.

Cardano Price has managed an explosive race over the last four days as Bitcoin traders make a comeback. This impressive improvement now appears to be preparing for a new phase.

Cardano blockchain development through the roof

These bullish prospects are supported by recent developments in a fundamental scenario and a chain scenario. Perhaps most significant is the recent rise in ADA blockchain development activity.

Based on data from Santiment, this metric reached a record high of 68 on 27 May. Given Vasil’s upcoming hard fork, which is set to debut in June, this increase in development activity makes perfect sense.

The new upgrade should, in theory, boost Cardano’s smart contract features and its smart contract platform known as Plutus.

ADA development activity

Investors are trying to catch up

Added to this increase in backend activity for Cardano blockchain is the recent increase in 24-hour transaction volume. This figure is currently around $ 14.24 billion below Bitcoins at $ 18.60 billion.

This huge amount of transactions on the ADA chain indicates a high level of activity from investors or users. Investors should note that Cardano has undergone massive changes, not just because of the recent Vasil hard fork – from the implementation of smart contracts and the ability to create native assets, the activity of investors, developers and users has increased exponentially.

As a result, the massive transaction volume that almost competes with large crypto can be a combination of transactions across blockchain, dApps and NFT markets.

24-hour ADA transaction volume

24-hour ADA transaction volume

The recent launch of NFT markets adds even more credibility to such a high trading volume for Cardano. Pool.pm, a data aggregation platform, shows that over 5 million NFTs or native assets have been created on the Cardano blockchain.

Pool.pm

Pool.pm

This massive increase in user interest in the ADA blockchain came after Mary’s hard fork was launched on March 1, 2021. In July 2020, Cardano founder Charles Hoskin announced the launch of the multi-asset feature in tweeting,

Recently, Hoskinson responded to a criticism indicates that his aforementioned tweet,

Great age and 4 million assets issued. How about informing yourself before you screw up and look like an idiot.

Ethereum killer connects to Ethereum

The launch of the Iagon Token Bridge adds credibility to Cardano’s basic prospects. This bridge allows investors to exchange their ERC-20 tokens for native Cardano tokens. Similar to the connections between different ecosystems, this bridge between the ETH and the ADA ecosystem will allow users to connect, transfer and trade their assets seamlessly.

In addition, the main reason for bridges is to enable the transfer of cash or capital between blockchains. As Ethereum is the reigning champion in terms of network effects and total locked value, competing blockchains are trying to suck this liquidity away.

Therefore, the recent increase in development activity and users interacting with the Cardano blockchain can be explained by the ability to connect and seamlessly transfer assets to and from the Ethereum blockchain.

With these major updates from a fundamental point of view, technicians should see a noticeable increase in the market value of the underlying token, as evidenced by the approximately 55% increase in ADA over the last five years.

ADA price ready for new move

The Cardano price swept the lower limit of the $ 0.487- $ 0.614 range on May 26, but it took another day to consolidate and recover. Since the May 27 low of $ 0.444, the ADA has risen about 55%, reaching the top of the range at $ 0.614 and marking the $ 0.677 barrier.

As investors continue to make profits, ADA will return to stable levels of support. In this regard, $ 0.614 may serve as a support point, but the barriers that will prevent further sales are $ 0.516 and $ 0.541.

Investors can hoard the ADA at these discounted prices and wait patiently for the next step, which could accelerate Cardano’s price by 52% to reach the lower limit of the $ 0.785- $ 0.90 obstacle.

ADA / USDT 1-day chart

ADA / USDT 1-day chart

While things favor traders in terms of the price of the Cardano, a sudden increase in selling pressure could reverse the ADA to retest the low range of $ 0.487. If the Cardano price produces a four-hour candle near $ 0.471, it will invalidate the bullish thesis by producing a lower low.

In this case, the ADA could go down to $ 0.397, where buyers could make a comeback.

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