The Plutus script used for smart contracts on Cardano's blockchain has had quite a boost in the last period. Has it had any reflection on price-action?

Cardano (ADA), currently ranked eleventh in market capitalization, is experiencing significant growth in its Plutus V2 smart contracts at a time when the market is stabilizing. Smart contracts play a crucial role in enabling decentralized applications (dApps) and facilitating automated transactions on the blockchain. With the improved functionality of smart contracts, Cardano is emerging as a strong contender among blockchain platforms.

As of April 14, the total number of Plutus scripts on the Cardano chain, including both Plutus V1 and Plutus V2, reached 41,743. This marks an increase of nearly 3% compared to April 1. Data shows that Plutus V1 scripts currently amount to 6,470, with a slight increase of 0.15% from the 6,460 on April 1.

On the other hand, the number of Plutus V2 scripts stands at 35,273, representing a 3.52% increase from 34,072. This is a significant addition of 1,211 new Plutus contracts deployed in April alone.

Cardano Price Analysis

The ADA token has declined after surpassing the resistance level at $0.86. The correction phase began last month, and there are no signs of a reversal this month. Cardano's downturn reflects the performance of other altcoins, with a decrease of approximately 30% from the peak of $788.85 billion to a low of $563.85 billion.

Currently, Cardano is trading in the red at $0.452, with a 4.77% decrease in 24 hours, and has experienced a 24.58% decline over the past seven days. ADA's monthly chart is also bearish, showing a decrease of 35.55%.

Cardano Outlook

There are signals for a possible uptrend for Cardano in the weekly chart. Its 50-day moving average (MA) is rising and is below the current price. Therefore, it could act as support if ADA continues to decline in the coming weeks.

Furthermore, ADA's long-term trend appears solid, considering that the 200-day moving average has been steadily increasing since last September. However, Cardano is still below its 200-week moving average. If it regains momentum and reaches the 200-week MA, it could serve as resistance and potentially hinder the upward movement.