ADA is close to $2.30 a day and has a classic torrential technological test signal, that the altcoin is ready for an all-time high.
Intelligent contracts were the revolutionary force in the blockchain sector as they enabled decentralized finance protocols, non-fungible signatures and a new form of transaction to be established without an intermediary.
Cardano (ADA) is one of the numerous projects that gained momentum during 2021; the long awaited intelligent contract capabilities of the project are on the verge of becoming a reality.
The data from Cointelegraph Markets Pro and TradingView indicates that ADA’s price rose by 139 percent to a high of $2.45 for several weeks after a low of $1.02 on July 20.
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.
A bullish upturn in the 50MA
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 as highlighted in the following chart posted by pseudonymous Twitter user Pharmlord.
As seen in the chart above, once crossing above the 50-MA, ADA price doubled and is now on the verge of hitting a new all-time high at $2.46.
Flipping $2.30 to support is key
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.
The $ADA dip gets bought aggressively and the rally continues— Rekt Capital (@rektcapital) August 19, 2021
ADA is getting incredibly close to revisiting its final major resistance of $2.30 (black)
Also very close to revisiting All Time Highs#ADA #Cardano https://t.co/FX0FS7Aekt pic.twitter.com/jDiXaLqcfF
ADA has already managed to convincingly surpass a lower resistance zone shown in red on the chart above and is now it is 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 Highs is the black level ahead (~$2.30).”
A cup and handle breakout will confirm the ATH
In the daily timeframe ADA shows a separate cup and handle training, according to Twitter user ‘Fidzcrypto.
As a technical indicator, Investopedia refers to the “cup and handle” pattern, similar to a cup with the handle, in which the cup has “u” shap and a little downward drift.
On the chart between 14 May and 16 August the cup portion of the pattern is visible, while in the dip price and recovery the handle is seen from 16-18August.
Investopedia as follows:
“The cup and handle is considered a bullish signal, with the right-hand side of the pattern typically experiencing lower trading volume. The pattern’s formation may be as short as seven weeks or as long as 65 weeks.”