Cardano price looks primed to breakout to new all-time highs

Cardano advances unabated on its path towards decentralization.
The so-called “Ethereum killer” will reach 100% decentralization by the end of March.
ADA price is holding key support at $1.10 as volume remains light.

Cardano’s protocol moves closer to full decentralization while ADA price awaits for volatility to strike back.

100% decentralization by April

IOHK, the development company behind Cardano, announced that the network is 90% through the goal of having all blocks being created by community stake pools, putting an end to the federated nodes.

If achieved, It will signal full governance by the stakeholders and, hopefully, for the collective good.

The transition to decentralization will provide the foundation for more decentralized finance (DeFi), stablecoins, and non-fungible tokens (NFTs).

The announcement will further add to the interest in Cardano’s native cryptocurrency, ADA. The cryptocurrency has rallied over 800% since the December 2020, making it one of the biggest gainers over the last few months.

ADA price at an inflection point

In trading, there is a saying that goes, “price contraction leads to price expansion.”

ADA’s 12-hour chart is a clear example of price contraction as it awaits the confirmation of decentralization at the end of March.

Over the last 5 days, Cardano price has traded sideways in a very tight range on low volume and has pushed through the February 26 downtrend line. The price action has shaped a small descending triangle.

Cardano price chart US

ADA/USD 12-hour chart

ADA is in a timely position for purchase, and the volume compression signals that selling pressure has been exhausted. A breakout above $1.346 would confirm that the cryptocurrency is ready to test the all-time high at $1.485 and potentially target $1.7615.

On the downside, a daily close below $1.0375 would signal a bearish resolution to the tight consolidation and leave Cardano price exposed to a decline to $0.8043.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.