Cardano: Alonzo Enters Final Stage, Smart Contracts On The Horizon

Cardano moves at full speed towards its final hard fork combinator (HFC) event Alonzo to implement full smart contract capabilities. The community has been keeping a close eye on the latest developments, as AlonzoPurple enters its final test stage.

Input-Output Global, the company behind this blockchain and its development, recently disclosed that they submitted an upgrade proposal. This will allow the Cardano testnet to hard fork “into the Alonzo era”.

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The process has been put into effect and should be completed within the day, IOG claimed. The company referred to this final test stage for HFC Alonzo as a “major milestone”.

In addition, IOG said that Cardano has entered a “critical stage” that will take place before the mainnet is forked to implement Plutus, its native smart contract platform. The company confirmed that the final stage for the HFC event Alonzo will be rollout out on September 12th, 2021.

Over the days ahead, we’ll be doing final checks and testing within a controlled environment to ensure that we are ready to upgrade the main #Cardano network. And usher in a transformative era of smart contracts capability.

Dimitris Poulopoulos, IOG’s delivery lead, called the new stage the “final dress rehearsal”. All the components and the smart contract platform need to work for a determined period of time before full implementation.

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During this time, developers will identify and fix issues before mainnet deployment. In addition, the team will “confirm” the stability of the network and its other elements.

Most importantly, crypto exchange platforms have been testing their configurations, reporting, and tracking down bugs and issues. Thus, when the HFC launches, these platforms can operate without problems.

The company thanked stake pool operators (SPO), pioneers, and other partners for their “incredibly hard work” and celebrated that they are “nearly there now”. The HFC Alonzo is probably one of the most awaited Cardano updates.

A Final Test For Cardano Before The Big Show

Charles Hoskinson, the creator of Cardano and IOG CEO, also thanked the community in a recently posted video on his YouTube channel. Hoskinson confirmed that after reviewing the infrastructure, and the state of the testnet, the team decided to greenlight the final test stage.

He further explained that, unlike previous occasions, Alonzo has entered the “primary testnet used for exchanges and all the other people”. Once the HFC infrastructure “rolls over”, it will stay on the testnet until the “update proposals are done” on September 9th, before its launch on the 12th. Hoskinson added:

It’s going to be probably a rather uneventful rollover, knock on wood. Looks like that, we are pretty happy about it. Everything is on schedule for the 12th. Big milestone today on the go/no-go decision (…). Thank you to the countless hundreds of people who helped us beta test this and push really hard (…).

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At the time of writing, ADA trades at $2,85 with a 12.8% profit in the daily chart. The cryptocurrency sits at the 3rd position in the top 10 by market cap, right below Ethereum, and Bitcoin.

ADA has been positively reacting to the updates on the platform’s smart contract capabilities and seems poised to continue breaking all-resistance levels. In the past day, it made one of the strongest comebacks after the market saw some selling pressure. $3 stands as the next major objective.



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Cardano chart painting a bull flag for $3 ADA price ahead of ERC-20 converter launch

Cardano (ADA) appears to be heading towards a new record high as its downside move takes the shape of a bull flag.

In detail, the ADA/USD exchange rate plunged 16.91% to $2.47. But the pair’s decline came after a strong move higher, wherein it surged over 120% month-to-date to reach an all-time high of $2.97 on August 23. Therefore, the latest declines gave an impression that Cardano is undergoing a brief pause before it resumes its uptrend.

Part of the upside analogy stems from the downward sloping channel itself—two parallel trendlines enveloping the price moves. In addition, the consolidation accompanies falling volumes, indicating a weaker response from traders to pursue the downtrend.

As a result, the shape appears like a bull flag, as shown in the chart below.

Cardano 4H price chart featuring bull flag setup. Source:

Typically, bull flags prompt traders to enter the market at the pattern’s bottom or breakout above the upper trendline’s high. In doing so, traders target levels located at a distance equal to equal to the size of the flag pole, i.e., the height of the uptrend that preceded the bull flag formation.

Cardano’s flagpole is $0.58-long. As a result, the ADA/USD’s bull flag target is $3.05 if measured from the pattern’s bottom at $2.47, about 23.65% higher.

More bullish cues come from the 50-4H exponential moving average (50-4H EMA; the velvet wave). Traders have shown their intention to hold 50-4H EMA as interim support, somewhat validating a breakout move for ADA/USD if it manages to float above the wave. 

The 50-4H EMA has been acting as a market entry level since July 21, 2021.

Additional support confluence for ADA/USD comes from the Ascending Channel’s lower trendline shown in the chart below. The pattern points toward a major price rebound, with a profit target at its upper trendline.

Cardano price chart featuring ascending channel pattern. Source:

In doing so, it could have ADA achieve its bull flag target midway. 

Supportive fundamentals 

The bullish technical setups emerged majorly due to euphoria surrounding Cardano’s long-awaited smart contracts feature, set to go live on Sep. 12 via the so-called “Alonzo” upgrade.

The news boosted hopes that Cardano would be able to rival Ethereum, the biggest smart contracts platform, which has lately struggled with network congestion and higher gas and transaction fees issues. As a result, demand for Cardano’s native asset, ADA, has been steadily growing.

In the latest Cardano 360 event, its top executives announced further plans to attract Ethereum blockchain users. Francisco Landino, project manager at IOHK, the research and development arm behind Cardano, said they would launch the testnet of an ERC-20 migration tool next week. 

Related: Cardano Foundation partners with Coinfirm for FATF and 6AMLD compliance

As a result, users would be able to transfer their Ethereum standard tokens (ERC-20) to Cardano’s native blockchain. SingularityNET, a decentralized artificial intelligence network, will migrate its native token, AGIX, from Ethereum to Cardano.

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During the event, Cardano founder Charles Hoskinson also said that over 100 companies have been planning to move to Cardano in the coming months.

The upside outlook also came amid concerns over Cardano’s efforts to gain legitimacy from financial regulators despite championing itself as a “decentralized public blockchain.”

Namely, Cardano Foundation partnered with Confirm, a blockchain analytics firm, to boost its compliance efforts in line with the Financial Action Task Force’s guidelines. Nevertheless, Weiss Crypto Ratings, a rating agency for cryptocurrencies, warned that Cardano’s decision would make its network “censorship-prone, politicized, and manipulated.”

Hoskinson responded in a video message that Cardano’s partnership with Confirm provide clarity to businesses, thereby enabling “more adoption in all industries,” whether regulated or unregulated.

The ADA/USD exchange rate was $2.61 at the time of writing, up over 6.5% from its sessional low.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.