Cardano (ADA) is holding mostly steady early on Tuesday after a sharp fall late in the previous session after crypto leader Bitcoin took a tumble after touching the key $40k level, weighing on the overall sentiment towards digital currencies. At the time of writing, ADA/USD is trading around $1.25.

On the fundamental front, Cardano enjoys considerable support from the ongoing development to upgrade its network and add several key features, especially the much awaited smart contracts capabilities. In addition, the developers are working on adding support for web browsers and mobile devices using the Plutus application’s backend running in Javascript. This will allow Cardano’s smart contracts to work on web browsers.

The team of developers is also working on the Mithril protocol which can support lightweight clients on the blockchain. They can then be used by users for verification of transactions on devices without the need to download the entire blockchain.

The widely expected Alonzo upgrade has entered the third and final phase, named as purple, and is expected to be finished by the end of next month. The Alonzo upgrade will also feature an ERC20 token converter so that tokens from the Ethereum network can operate on Cardano’s network as well.

Key Levels to Watch

On the 4-hour chart of ADA/USD, most of the moving averages and the momentum indicator are suggesting a strong bullish bias. On the other hand, however, the 200 EMA and 200 SMA as well as the MACD indicator point to the presence of sellers as well.

Cardano’s price is sitting well above the pivot point and it looks like buyers are getting ready to take the price higher towards $1.31, where they can encounter the first resistance. However, if the selling pressure increases, we could see ADA slip lower towards the immediate support at $1.08 instead.