Cardano’s Consolidation Continues as Focus Shifts Towards Polkadot

The sluggishness is slowly starting to fade out in the crypto market, as most coins are gradually preparing to take off. The market that was heading higher a few weeks ago without any hurdles along the way got hit by the seller with immense momentum. Although the recovery came in quite aggressive in most of the tokens, the volatility of the market dropped progressively.

Currently, it looks like the big players as in the market, as some cryptos are going through decent breakouts. Of course, the momentum and the expected volatility still lack, but the price approaches key levels can certainly bring the larger players back in the game.

Bitcoin crypto, for instance, has been heading higher in the past few trading sessions after setting a low at $43,500. Similarly, the second-largest cryptocurrency, Ethereum, has been slowly inching to the upside after taking support at $3,100.

Altcoins, on the other hand, are doing much better than the top two. Few projects have managed to even recover 100% from the point of drop. And the rest of them are either in sync with Bitcoin or slightly outperforming them.

On the fundamental side of things, few altcoin projects have major updates, leading the prices to stay at higher levels. Based on the recent price action and technical updates, Polkadot and Cardano are a couple among the center of attraction coins.

Polkadot Ecosystem Gets Wider

Polkadot, a blockchain designed to support different interconnected chains, is growing larger than ever. As the most recent update, SubQuery, a decentralized data aggregator, brought 8 million USD to develop the first aggregation layer on Polkadot. For instance, the Moonbeam parachain has its native tokens built on Polkadot’s substrate, allowing tokens sent to Ether wallets and smart contracts seamlessly.

DOT’s Open Interest Suggests Bullishness

Understanding the price charts is one aspect of technical analysis. But having insights on the Futures data also helps investors get an added edge to their analysis.

Polkadot’s total futures open interest has been on the rise. According to stats, the open interest on DOT grew from $360 to $685, an increase of a whopping $325 in a month. This indeed is a bullish signal on DOT as the increase depicts that the leveraged long positions are being held despite the bull run.

Polkadot Continues to Rise Gradually

It is a known fact that the Polkadot token has been laggard crypto in this ongoing altcoin bull season. Despite being one of the biggest ecosystems in the crypto space, DOT has failed to display the same in its price action.

Having that said, the DOT market has finally got back on track after breaching the $28 major resistance level. It is currently inching to the higher timeframe resistance at $42, which could be achieved within a week.

Cardano’s Alonzo Upgrade Goes Live Successfully

After a long wait, the Alonzo upgrade has been successfully implemented into the Cardano protocol. The much-awaited upgrade brings smart contacts to the platform,  going in competition with Ethereum.

This recent update is significant for the Cardano community, as it opens up a new world of financial products and uses cases. Cardano recorded over 100 smart contracts deployed on Cardano’s network within one day of launch, with one decentralized app ready to hit the marketplace.

Decentralized applications are no biggie in the current stage. There are several platforms that extensively focus on letting developers build decentralized apps efficiently. But with most, the issue of high transaction cost and network congestion remains unsolved. In terms of energy consumed, few platforms use the energy equivalent of a whole country.

However, Cardano (ADA) has already fixed the majority of the difficulties that blockchain developers encounter today, thanks to the recent and earlier upgrades. The blockchain employs a one-of-a-kind transaction verification method that is 4 million times more efficient than Bitcoin. Furthermore, it consumes much less energy than typical blockchain networks. And it is also claimed that the algorithm helps in predicting the transaction costs beforehand to ensure stability in developing applications.

Was ADA Price Action off Sync with the Recent Upgrade?

The third-largest cryptocurrency has been in a surge even since the buyers got back in the market a couple of months ago. After breaking through the long-held resistance at $1.4, the price rallied massively up to $2.8 in a matter of two weeks.

But, surprisingly, the entire run to the north happened much ahead of the Alonzo upgrade going live. Moreover, on the day the upgrade took place, the Cardano market plunged by about 7 percent despite its successful launch.

However, the drop was expected on ADA token regardless, as the price was trading at a potential resistance level. Also, the price unable to breach below the support levels indicates that the fall was not associated with the upgrade.

Currently, the prices are hovering around the $2.5 mark, which is the previous ATH. Based on the momentum of the bulls getting stronger at these support zones, a higher high awaits on Cardano’s ADA crypto.

Now you can get Cardano, Polkadot, and most of your favorite cryptos from our list of popular and reliable cryptocurrency exchanges.