Key Points
- Cardano’s native token ADA is currently consolidating near $0.50 in subdued trade ahead of Friday’s US jobs data.
- However, ADA remains in an uptrend from July’s near-$0.40 lows, with bulls eyeing a retest of recent $0.55 highs.
- A break above $0.55 could trigger a swift rally towards the $0.67 to $0.69 area.
Cardano Consolidates Near $0.50 Ahead of Key Macro Events
ADA, the native token that powers the Cardano blockchain, was last changing hands nearly bang on the $0.50 level, having so far on Thursday swung within a thin $0.4950 to $0.5100ish range, meaning the cryptocurrency has stayed well within recent ranges. ADA continues to hold above its 21-Day Moving Average near $0.4950, with cryptocurrency markets in wait-and-see mode ahead of the release of key US jobs data on Friday that could impact expectations for Fed policy tightening over the next few quarters.
Current price action is consistent with Cardano’s native token remaining in an uptrend from its mid-July lows close to $0.40. ADA/USD also continues to compress within an ascending triangle formation, with resistance in the $0.55 area having acted as a ceiling since mid-June.
These patterns often form ahead of a bullish breakout. For ADA to break above $0.55, it’s also going to need to push above its 100DMA just above $0.54. If the cryptocurrency can muster a break above this resistance area, it opens the door for a swift run higher towards the late May/early June highs in the $0.67-0.68 area.
Cardano Ecosystem Posts Solid Growth in July
According to the latest tweet from one of Cardano’s official Twitter accounts @Cardano, the blockchain ecosystem posted impressive MoM growth statistics in July. The number of native tokens issued on the Cardano blockchain rose 6.34% to 5.7 million. The number of transactions rose 4.9% to 47 million.
The number of wallets rose 2.27% to 3.5 million and the number of Plutus Scripts (Cardano’s smart contract platform) rose 4.75% to 2,993. This has now surpassed 3,000 in August, according to Cardano Blockchain Insights data.
#Cardano monthly on-chain stats💥
🚀🆙💪 pic.twitter.com/Fn0ihd1x8V— Cardano Community (@Cardano) August 3, 2022
Cardano-Cosmos Bridge Under Development
Peggy 2.0 and Sifchain are developing a Cardano-Cosmos bridge that, according to Twitter account @cardano_daily, “will unlock new cross-chain opportunities between these two ecosystems and offer new solutions to existing problems”. Moreover, the bridge “will deliver never-before-seen network effects that will scale the reach and adoption of both families of blockchains,” said @cardano_daily.
According to the Twitter account, “Cosmos and Cardano share common goals around research-backed development, community-driven applications, and global accessibility of blockchain-based solutions, with interoperability at heart”. Given Cosmos’ $200 million in cross-chain transactions, 40 chains and thousands of dApps, the “Cardano ecosystem would benefit from a connection to Cosmos in many ways”.
COSMOS CARDANO BRIDGE
Coincidentally, I have mentioned in a tweet that @Cardano needs a bridge to another ecosystem, and the @cosmos – Cardano bridge supported by @sifchain was released right after. Let’s discuss about this bridge.🎉
#bridge #cardano #cosmos pic.twitter.com/pqTwIIzRvE— Cardano Daily (@cardano_daily) August 3, 2022