ADA’s daily close above the $2.30 resistance and a classic bullish technical analysis pattern signal that the altcoin is ready to hit a new all-time high.
Smart contracts have been a revolutionary force in the blockchain industry because they have enabled the creation of decentralized finance protocols, nonfungible tokens and a new form of carrying out transactions without the need of a middleman.
Cardano (ADA) is one of the many projects that has been gaining momentum throughout 2021 and now that the project’s long-awaited smart contract capabilities are on the verge of becoming reality, the token is on the precipice of setting a new all-time high.
Data from Cointelegraph Markets Pro and TradingView shows that after bottoming at a low of $1.02 on July 20, the price of ADA has surged 139% to a multi-week high at $2.45.
Here’s a look at what some analysts and traders are saying about the recent price action for ADA and what token holders may want to keep an eye on in the short term.
The rapidly rising price of ADA has been hard for most traders to ignore, especially since multiple technical indicators have now flipped bullish.
One such indicator is the 50-day moving average (50MA), which is now pointed up after being on a downslope for roughly 2 months. Insight into the important levels that ADA bulls need to keep an eye on was provided by Rekt Capital, a pseudonymous Twitter analyst who pinpointed the importance of the $2.30 level.
According to Twitter user ‘Fidzcrypto’, ADA is showing a distinct cup and handle formation on the daily timeframe.
Investopedia cites the cup and handle pattern as a technical indicator that resembles a cup with a handle, where the cup is in the shape of a “u” and the handle has a slight downward drift.”
The cup portion of the pattern can be seen on the chart between May 14 and Aug. 16, while the handle is seen in the price dip and recovery from Aug. 16 – Aug. 18.