Cardano (ADA) is starting Monday on a cautious note after experiencing a slight correction earlier during the weekend, but is enjoying the support of several interesting developments that can increase the popularity of its blockchain network soon. At the time of writing, ADA/USD is trading at around $2.81.

In his latest update ahead of the upcoming Alonzo upgrade scheduled to go live in a couple of weeks, Cardano’s co-founder Charles Hoskinson maintained that the features soon to be released will maintain the blockchain’s commitment to energy efficiency. The final testnet will launch on September 1 and will take place on the primary testnet instead of Alonzo Purple’s testnet that was rolled out a few weeks ago.

Along with the smart contracts capabilities, the Alonzo HFC will also see the launch of Cardano’s ERC-20 converter bridge. It goes live on the testnet next week and will allow ERC-20 token users from Ethereum’s blockchain to make the switch to Cardano, enjoying higher transaction speeds and energy efficiency as well as lower gas fees. This development will give the blockchain a significant advantage as it competes with Ethereum.

Cardano’s rise is also powered by the launch of Cardaswap market maker on its blockchain. Developed on the AMM protocol, it will be the first DEX on the Cardano network, bringing with it the benefits of yield farming, and will also launch the Cardaswap NFT marketplace towards the end of the year.

Analysts are also extremely bullish about Cardano’s prospects, with crypto strategist Michaël van de Poppe forecasting possible price corrections before a 70% rally from its current price. Another crypto influencer Benjamin Cowen expects ADA to rise towards $3 and even $4 in the near term, supported by a bullish mood among investors towards Bitcoin.

Key Levels to Watch

Taking a look at the 4-hour chart of ADA/USD, we find the most of the moving averages are suggesting a bullish bias at the moment. However, leading technical indicators MACD and momentum as well as some of the smaller timeframe MAs are pointing to some selling pressure.

Cardano’s price is well above the pivot point at $2.76 but an increase in selling pressure can see it breakdown under this level. In such an event, keep an eye on the immediate support level at $2.55 as the price will head towards it.