Cardano (ADA), currently the eleventh-largest cryptocurrency by market capitalization, is experiencing significant growth in its Plutus V2 smart contracts. The surge in the number of smart contracts comes at a time when the broader cryptocurrency market is stabilizing.
Smart contracts play a crucial role in enabling decentralized applications (dApps) and facilitating automated transactions on the blockchain.
Because of this, Cardano’s focus on enhancing its smart contract functionality positions it as a contender in the competitive environment among blockchain platforms.
As of April 14, the total number of Plutus scripts on the Cardano network, including both Plutus V1 and Plutus V2, has reached an impressive figure of 41,743, marking a nearly 3% increase from April 1, according to data retrieved by Finbold on April 15.
Specifically, these figures account for Plutus V1 scripts currently amounting to 6,470, representing an increase of 0.15% from the 6,460 on April 1.
Additionally, the number of Plutus V2 scripts is standing at 35,273, with an increase of 3.52% from the 34,072.
This translates to a noteworthy addition of 1,211 new Plutus contracts deployed in April alone.
Cardano price analysis
In a recent pullback, ADA has seen its price dip following a hurdle at the $0.86 resistance level, which aligns with the golden ratio.
This corrective phase began last month and shows no signs of immediate reversal so far in April.
This pullback reflects the broader weakness in the altcoin market, which has seen a roughly 30% drop from its 2024 peak of $788.85 billion to a low of $563.85 billion.
As a consequence, Cardano’s price has fallen nearly 32% over the past month and a further -20.08% over the last week. The monthly chart paints a bearish picture, indicating a short-term downtrend for ADA, with the current value standing at $0.487 at press time.
Cardano outlook
Looking at the weekly chart, there are signs of potential bullishness for Cardano. The 50-day moving average (MA) is currently on an upward gradient and sits below the current price.
This positioning suggests the 50-day MA could act as a crucial support level if ADA’s price dips in the coming weeks.
Furthermore, the long-term trend for ADA strengthens when considering the 200-day moving average, which has been steadily rising since September 2023.
However, the price of Cardano currently sits below the 200-week moving average. If the price were to revisit the 200-week MA, it could act as a resistance level, potentially delaying further upward momentum.
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