Current price: $0.39
Market capitalization: $13.165 billion
Cryptocurrency ranking position: #8
The developers of Cardano launched the super-secure algorithmic stablecoin Djed on January 31, as promised. This was a major milestone in the development of the Cardano blockchain.
The stablecoin will have 400% to 800% overcollateralization. Thus, as the developers explain, “it will have 4-8 times the base value behind it compared to the total amount of Djed coins issued.
At the moment, we are only talking about the beta version 1.1.1, which is compatible with the Vasil hard fork and has a limited amount of liquidity. Version 1.3 will significantly increase liquidity and add support for stacking.
However, such a significant event for the ecosystem was ignored by the price of ADA, the native token of the Cardano network.
As technical analysis shows, Cardano’s exchange rate has increased by 67% since the beginning of the year. On the 9th of January, the price made a bullish breakthrough of the long term downward resistance line. Now, the coin is trading near the resistance area of $0.42. The future direction will depend on whether the bulls manage to take this barrier or if the price bounces off it.
In the case of a bullish breakout, Cardano will accelerate its growth towards $0.52. On the other hand, a bounce could lead to a retest of the $0.33 support area.
Read more: Cardano Launches Stablecoin. Will it breathe new life into ADA?
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