The native token of the smart contract platform Cardano, $ADA, has been seeing its price drop recently, losing 19.2% of its value over the last 30-day period amid a wider cryptocurrency market slump. It is, however, “exactly where it should be” ahead of a potential breakout.
On the microblogging platform X (formerly known as Twitter), prominent cryptocurrency analyst Ali Martinez revealed last month that Cardano’s price performance “resembles the pattern observed from 2018 to 2021,” and noted that “should this fractal continue” ADA could keep on consolidating around $0.55 to $0.80 for now.
The cryptocurrency is at the time of writing trading t $0.58 per token. Martinez noted that this consolidation could last weeks and would be followed by a surge to the $1.7 mark, after which another period of consolidation would follow to “set the stage for a breakout to $5.”
In a recent post Martinez followed up, saying “nothing really changed for Cardano” as ADA is “exactly where it should be,” consolidating before breaking out to the $1.7 mark.
Cardano, as reported, has been seeing its smart contract development skyrocket. Data from Cardano Blockchain Insights shows a remarkable increase of over 170% in Plutus scripts, the network’s language for building smart contracts, since the beginning of the year.
Plutus is designed with a focus on security and reliability, drawing on principles from functional programming. Plutus V2, however, offers additional features and benefits for developers that include reduced transaction sizes and costs, along with a more flexible and scalable framework for building applications.
Cardano’s growth extends beyond smart contracts, as the network has seen a significant rise in user activity over the last 30 days, with the number of active wallet addresses reaching a one-year peak of over 600,000 after surging nearly 40% over that same period.
Featured image via Unsplash.
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