- Summary:
- Cardano has traded in a sideways market for the past one week. However, the latest launch of Djed stable coins may see its trend changing.
As the Cardano ecosystem continues its expansion with the much anticipated Djed stablecoin that is scheduled to be launched next week, its performance in the markets for the past week has continued to show weakness. This is after trading sideways with narrow price margins of between $0.35 and $0.40 since Saturday, 21.
The Upcoming Djed Launch
In an official statement released by COTI, a platform that is optimized for creating price-stable coins and the defacto issuer of Djed stablecoins announced that the launch was scheduled for next week. However, COTI did not disclose any specific date for the launch but noted that there were technological developments they were currently working on, such as the “chain indexing process” that were delaying the launch. They also indicated that they were developing a snapshot feature and user interface (UI) that will be integrated into DJED. The functionality will enable the facilitation of ADA staking and general additional rewards for $SHEN holders, allowing them to monitor extra awards.
The launch of Djed stablecoins is likely to have a huge impact on the price of Cardano for a number of reasons. It will be the first decentralized and overcollateralized stablecoin built on Cardano. It will also be backed by Cardano. Since the announcement about the project, it has also generated interest from the Cardano community, which is a positive going forward.
Although the current developments with Djed and Cardano have not resulted in its prices changing trajectory, there is a high likelihood that the factors listed above will impact its future performance.
Cardano Price Forecast
As seen from the fundamental analysis above, the long-term outlook of Cardano is to the upside. On the technical side of things, Cardano’s long-term price action is still to the upside despite the sideways trading of the past week.
Therefore, my price target for Cardano for the next few trading sessions is above $0.43 resistance level. There is a high likelihood that we might see it trading above the $0.50 price level, partly due to the current industry-wide aggressive bullish trend. However, a drop below $0.35 will invalidate my bullish analysis.
Daily Chart
