The Cardano price attempted to rebound on Thursday as the Goguen era ushered a new era in smart contract technology. The ADA price rose to $1.2350, which was slightly above this week’s low of $1.2144. It has a market capitalization of more than $39 billion.
Cardano rolls out smart contracts
Cardano is one of the biggest cryptocurrency project in the world. Yet very few people who invest in it know what the project does.
For starters, Cardano was started by Charles Hoskinson, who is a well-known person in cryptocurrency circles. He became famous for being part of Vitalik Buterin’s team that built Ethereum.
Cardano is a project that helps solve real problems in almost all sectors. A good example is that the developers recently teamed up with Ethiopia’s government to decentralize the education sector. The project is also used to fight contraband projects, track supply chain, and facilitate KYC and AML in finance.
Cardano’s roadmap is made up of five key stages, as shown below. The most notable one is Goguen, which will introduce the smart contract technology. Smart contracts is the technology that helps developers build Decentralized Applications (DAPPs) like Uniswap, Aave, and Curve Finance.
Still, it is too early to tell whether they will be successful in this considering that many projects are currently built on Ethereum. Other DAPP projects like Polkadot and Solana have struggled to gain massive scale. So, what next for the Cardano price?
In a note on Wednesday, the developers said that they had forked the Alonzo testnet. This move means that developers will soon be able to build decentralized applications using Cardano
Cardano price prediction
The four-hour chart shows that things are not going well for the ADA price. We see that the coin’s price has declined by 18% from the highest level this month. Notably, the Cardano price has formed a rounded top pattern that is usually a bearish signal.
Further, it has moved below the 25-period and 50-period exponential moving averages (EMA). Another notable fact is that the coin seems to have formed a head and shoulders pattern whose neckline is at $1.2825. Recently, it has formed a break and retest pattern, which is usually a bearish signal.
Therefore, I suspect that the Cardano price will keep falling as bears target the next reference point at around $1.08. On the flip side, a move above the resistance at $1.3500 will invalidate the bearish view.