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The Alonzo White test nett went live on July 15, bringing Cardano one step closer to allowing smart contracts on its platform. The latest version lets around 500 people to test its smart contract capabilities, a substantial increase over Alonzo Blue, which was confined to a small number of participants.
With anticipated enhancements on track, according to Charles Hoskinson, Cardano’s native coin, ADA, was rather volatile on the charts. At the time of writing, ADA was ranked fifth in the cryptocurrency rankings, having a market valuation of $38.3 billion.
Cardano 4-hour chart
Cardano has been trading in a down channel since the first week of July, as the digital asset’s value has slowly fallen. When losses were computed from the channel’s peak position at $1.49 to its lowest point at $1.15, they totalled to 23%. At press time, prices were testing the half-line of their pattern, which coincided with the 20-SMA, and a successful close above the zone would increase the likelihood of additional gains in the following sessions. Prices would then approach $1.26 and the pattern’s top trendline. If the 20-SMA prevents an upward breakout, ADA may trade sideways between $1.17 and $1.19 until the broader market suggests a more decisive move.
The -DI and +DI of the Directional Movement Index approached a crossing, signalling a probable trend shift in favour of the bulls. On its way to equilibrium, the Relative Strength Index has been establishing higher highs. A good conclusion might be predicted if the indicator rises over 50-55 and enters bullish zone. The Awesome Oscillator detected some rising momentum, but not enough to cause a dramatic price move.
ADA was on the verge of a significant development, one that would decide the company’s short-term direction. A good break above the 4-hour 20-SMA and half-line of its pattern would indicate a positive conclusion, and prices may soar beyond $1.26. Failure to do so may result in some sideways movement between $1.17 and $1.19, from which a dip to $1.13 is likely.