Cardano price resurged boldly to the $1 mark after rallying by more than 9 percent on Tuesday. The recovery marked a successive two day gain by ADA price after being rejected at the $1.15 mark, near two-and-a-half year highs.
The crypto coin’s newfound momentum is propelled by a market-wide recovery underlined by Bitcoin’s return to the $95k mark, as and the successful deployment of the first zero-knowledge (zk) smart contract on the Cardano mainnet on Tuesday.
Cardano developer, Input Output (IO), conducted a successful ZK-powered smart contract operation with Halo2. The first transaction involved locking up funds by IO while the second one saw Halo 2 unlocking, with the transaction fee at $1.9.
The integration of zk proofing technology in smart contracts is seen as revolutionary, as it drastically reduces latency and improves scalability, security, and transparency while reducing transaction costs. That elevates Cardano in the DeFi space and has given it muscle to challenge Ethereum’s dominance.
With Ethereum’s DeFi Total Value Locked (TVL) standing at 68 billion as of this writing, ADA price could benefit greatly if Cardano eats a substantial portion. Currently, Cardano chain’s DeFi TVL is a measly $603 million, which has subdued ADA’s utility in the DeFi ecosystem.
Cardano’s price pivots at $1.02, and the buyers are currently in control, as shown by the MACD momentum indicator. That will likely see further advances to the first resistance mark at 1.03. However, extended bullishness will breach that barrier and could send the price higher to test the second resistance at $1.05.
On the other hand, moving below $1.02 will signal a shift by the momentum to the downside. In that case, the first support will likely come at $1.00. A stronger downward momentum could break below that level and invalidate the upside narrative. Meanwhile, the price action could go lower and test $0.98.
This post was last modified on Nov 27, 2024, 19:18 GMT 19:18