Cardano price rallies with IOG update that allows sidechains to be built on the ADA blockchain


  • Cardano’s developer Input Output Global launched the first iteration of its toolkit for developers to build sidechains on the ADA blockchain. 
  • IOG’s toolkit allows developers to leverage Cardano blockchain’s security and infrastructure and build parallel blockchains. 
  • Cardano’s update will allow the 1,162 projects building in its ecosystem to benefit from the decentralization and scalability of ADA. 

Cardano, an Ethereum-killer blockchain co-founded by Charles Hoskinson recently unveiled the developmental updates on the week. Developers at Input Output Global (IOG) have released the first iteration of a toolkit that enables the ecosystem’s projects to build sidechains on the blockchain network. 

ADA price rallied in response to positive developmental activity and updates over the week from January 7 to 14, 2023. 

Also read: Cardano and Solana decoupled from crypto in explosive price rallies, which altcoin is next?

Cardano hits key developmental milestone for ecosystem’s utility

Cardano, the eighth largest cryptocurrency with a market capitalization of $12.29 trillion is on track in terms of developmental activity. IOG, the technology company behind the altcoin and its ecosystem has released the first iteration of a toolkit that enables developers to build sidechains on the Cardano network. 

A sidechain is an independent chain that works in parallel to a parent blockchain and has one core mission; to tackle the scalability issue and leverage ADA’s security and infrastructure. Since its launch in 2017, the Cardano blockchain has run without a failure and its success has drawn 1,162 projects, developing in the ADA ecosystem. 

Cardano's weekly development report by IOG

Cardano’s weekly development report by IOG 

IOG released the above development report on January 13, citing 7.5 million native tokens and 112 total projects launched on the Ethereum-killer’s blockchain. Therefore, developmental milestones are key to boosting the utility of the ADA ecosystem and attracting, nurturing smart contract projects, dApps and NFTs. 

ADA bulls look exhausted, Cardano price braces for impact

Cardano price is primed for correction based on two factors seen in the price chart below. The altcoin has formed a Rising Wedge, a bearish chart pattern and the momentum indicator Relative Strength Index (RSI) is showing loss of underlying strength in the uptrend. 

Both trade volume and the momentum indicator signal that the climb on the ADA/USDT price chart is short lived. Cardano’s first downward breakout target is the first point where ADA hit the upper trendline forming the wedge, $0.3290 and the next two key levels are the 50-day Exponential Moving Average (EMA) and the 200-day EMA at $0.2912 and $0.3151 respectively. 

ADA/USDT price chart

ADA/USDT price chart 

If Cardano price continues climbing higher, between $0.3600 and $0.3800, when ADA hits the upper trendline of the wedge, it could witness a pullback. A close outside the upper trendline of the rising wedge could invalidate the bearish thesis. 


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.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP