Altcoins look to be gaining traction in the crypto market, highlighted by the recent rise in the price of Cardano (ADA), which has seen a surge in recent days.
The decentralized asset has gained 30% in the previous week, and it is presently trading at $1.51 per coin on Monday, January 17, with a total market capitalization of $50.5 billion.
Notably, ADA may have bottomed out in terms of reaching a recent market low, speculates professional cryptocurrency trader Michaël van de Poppe. The Dutch analyst considers that the asset is now showing strength in the market as the sentiment has quickly switched from bearishness in the last month.
“Now Cardano is showing massive strength. It’s waking up as one of the few [altcoins]. It took out the actual low and bounced on this crucial support level here [$1.20] and we’re getting continuation as the charts didn’t change which means crucial support is still the same.”
ADA/USDT chart. Source: Michaël van de Poppe
Although ADA dipped below $1.20 and into the area of $1.05, it successfully bounced back up, Poppe highlighted:
“Given the divergence that we’ve created here, right now we are acting inside resistance, and we can see that the momentum or the actual hype around Cardano is waking up again.”
ADA entry points
According to the prominent trading expert, those looking to make entries to buy Cardano who missed the initial opportunity should be looking at long entries around $1.30, although on the daily time frame, he suggested avoiding chasing the trade.
“We are looking at long entries at the lower boundaries, so around $1.30 we are looking at support here, and we’re looking to get ourselves into a position. When we base it on the daily time frame looking at the lower time frames, it’s definitely not a moment to start chasing the actual trade. Then you can be seeking for an aggressive day trade around $1.41,” Poppe said.
Development on Cardano networks sees record growth
As a result of the ongoing development on the Cardano network, the platform has seen unprecedented growth, with new smart contracts functionality continuing to draw in more developers.
There were 72 new projects uploaded to the Plutus smart contracts platform between December 13, 2021, and January 13, 2022, increasing the total number of smart contracts on the platform from 897 to 969.
The growing number of smart contracts on the Cardano blockchain lends credence to the notion that the network will likely emerge as a significant rival to Ethereum, which now dominates the cryptocurrency space.
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