Smart contracts have been a revolutionary force in the blockchain industry because they have enabled the creation of decentralized finance protocols, non-fungible tokens, and a new way to transact without the need for intermediaries.
Cardano (ADA) is one of many projects that has been gaining momentum throughout 2021 and now that the long-awaited smart contract features of the project are about to become a reality, the token is about to mark a new all-time high.
Data of Cointelegraph Markets Pro and TradingView show that, After setting a bottom at $ 1.02 on July 20, the ADA price has risen 139% to reach a multi-week high at $ 2.45.
Below is what some analysts and traders are saying about ADA’s recent price action and what token holders may want to keep in mind in the short term.
A rise in the 50-day moving average
The rapid rise in the price of ADA has been difficult for most traders to ignore, especially since multiple technical indicators have turned bullish.
One of these indicators is the 50-day moving average (50MA), now pointing up after being on a downtrend for about 2 months, as highlighted in the following graph published by the pseudonymous Twitter user, Pharmlord.
As seen in the graphic above, Once it crossed above the 50-day moving average, the ADA price doubled and is now about to hit a new all-time high at $ 2.46.
The key is to break through the support at $ 2.30
The insight into the important levels ADA bulls should watch out for was provided by Rekt Capital, a pseudonymous Twitter analyst who noted the importance of the USD 2.30 level.
The $ ADA dip gets bought aggressively and the rally continues
ADA is getting incredibly close to revisiting its final major resistance of $ 2.30 (black)
– Rekt Capital (@rektcapital) August 19, 2021
The ADA decline is aggressively bought and the rally continues.
ADA is incredibly close to revisiting its last major resistance of $ 2.30 (black level).
It’s also very close to revisiting all-time highs.
ADA has already convincingly managed to overcome a lower resistance zone shown in red on the chart above and is now attempting to break the May 16 all-time high at $ 2.46.
According to Rekt Capital:
“The only major resistance left before a new all-time high is the black level ahead ($ 2.30).”
A breakout of the cup and handle pattern will confirm the all-time high
According to the Twitter user Fidzcrypto, ADA is showing clear cup and handle formation in daily time frame.
Investopedia cites the cup and handle pattern as a technical indicator that resembles a cup with a handle, where the cup is shaped like 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 August 16, while the handle is seen on the price drop and recovery from August 16 to 18.
According to Investopedia:
“The cup and the handle are considered a bullish signal, and the right side of the pattern usually experiences lower trade volume. The pattern formation can be as short as seven weeks or as long as 65 weeks.”
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Each investment and trade movement involves a risk, you must carry out your own research when making a decision.