Cardano AI Token Boost: ADA Breaks Resistance with Potential for a Further 18% Rally
Introduction: Cardano (ADA) saw an impressive 9% rally over the weekend, fueled by exciting developments within its ecosystem. The Artificial Superintelligence Alliance (ASI) recently announced that its native token, FET, has now been deployed on the Cardano blockchain. This strategic move has brought renewed attention to Cardano’s network, driving significant on-chain activity and sparking bullish sentiment.
ASI Token Launch Boosts Cardano |
| On September 7, the ASI Alliance announced the migration of its native FET token to the Cardano blockchain. As part of this transition, the FET token will be rebranded as ASI, and its deployment on Cardano has been lauded for improved security, faster transaction speeds, and lower fees. This rebranding also signifies the token’s full integration as a Cardano Native Token (CNT), enabling better functionality and deeper collaboration within the ecosystem.
Ben Goertzel, the CEO of SingularityNET, praised Cardano for its “mathematical elegance,” highlighting its potential role in the advancement of Artificial General Intelligence (AGI). His comments further boosted confidence in Cardano’s infrastructure as a foundation for emerging technologies. Both ADA and FET responded positively to the news. ADA surged by 8.39%, while FET (now ASI) saw gains of 6.85% since the announcement. This collective rally underscores the market’s positive reaction to the collaboration between AI-driven blockchain projects and Cardano. |
ADA Active Addresses Hit a 5-Month High |
| The ASI token announcement triggered a chain reaction within the Cardano ecosystem, resulting in a spike in activity. According to data from Santiment, ADA’s active addresses hit a five-month high of 52,077 on September 7, signaling increased participation in the network. This surge in active addresses, which occurred prior to the price rally, suggests growing short-term bullish sentiment among ADA holders.
Moreover, the funding rate for ADA futures contracts turned positive over the weekend after a period of negative funding. A positive funding rate indicates that long positions are potentially dominating the market, which could have further contributed to ADA’s recent price rally. |
Bitcoin Correlation Plays a Role |
| Another factor influencing ADA’s weekend performance is its strong correlation with Bitcoin (BTC). Data from Blockchaincenter.net reveals that Cardano and Bitcoin share a 90-day rolling correlation index of 0.74, a figure that has increased by more than 10% since early August. While Bitcoin’s returns over the weekend were only 3%, it provided a bullish foundation for ADA to build upon, especially with the momentum from its ASI partnership. |
Technical Analysis: ADA Eyes $0.40 |
| From a technical perspective, ADA has experienced a break of structure (BOS) on both the 1-hour and 4-hour charts, a key indicator that the bearish trend might be reversing. On the 1-hour chart, ADA has maintained a position above its 200-day EMA (Exponential Moving Average) after forming a bullish double-bottom pattern. However, the 4-hour chart reveals that ADA is currently facing resistance at the same EMA level.
If ADA can break above the 200-day EMA on the 4-hour chart, it may retest local highs of $0.40 over the coming days. This would represent an additional 18% rally from its current levels, which reached $0.35 on September 9. |
Final Thoughts |
| Cardano’s recent price rally demonstrates the growing interest in its ecosystem, especially as it continues to attract prominent blockchain projects like the ASI Alliance. The successful integration of AI-driven tokens and the network’s ability to support innovative applications further strengthen its position in the crypto space. With increasing on-chain activity, rising correlation with Bitcoin, and positive technical signals, ADA could be poised for further gains in the near term. However, traders should keep an eye on resistance levels and any shifts in market sentiment to avoid potential pitfalls.
As the cryptocurrency market continues to evolve, Cardano remains a project to watch, especially as it pushes boundaries in the realms of artificial intelligence and blockchain integration. |
Conclusion
Cardano’s recent price rally highlights the growing strength of its ecosystem, fueled by the deployment of AI tokens like FET (rebranded as ASI) on its blockchain. The integration of cutting-edge technologies and positive sentiment from industry leaders has driven ADA’s recent surge, reaching key milestones in both price and on-chain activity. While the 200-day EMA presents a short-term challenge, the potential for further gains remains strong, especially if ADA can break above resistance levels. With its rising correlation to Bitcoin and increasing network participation, Cardano could continue its bullish trajectory in the coming days.
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