on track to hit all-time high

  • November 10, 2021

The Cardano (ADA/USD) is no longer in the sidelines. The coin’s price has surged by more than 15% in the past 24 hours and is trading at its highest level in more than a month. 

ADA rebounds

Cardano is a relatively popular blockchain project that is controversial in equal measure. The project’s goal is to help solve some of the biggest challenges that institutions face. The developers believe that they can use the project in areas like education, healthcare, and in supply chain management.

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At the same time, Cardano is an Ethereum-killer, thanks to its recently-introduced smart contract technology. Smart contracts is the technology that enables companies and developers to build applications such as those in the Decentralized Finance (DeFi) industry.

The Cardano price jumped sharply a few months ago as investors cheered the launch of the smart contracts capabilities. This launch happened through the Alonzo hard fork. 

However, since then, the price has underperformed its peers. For example, while Ethereum has jumped to an all-time high, Cardano is still about 25% below its highest level on record. The same is true with other cryptocurrencies like Bitcoin, Binance Coin, and Solana.

The ADA price started a strong bullish breakout on Monday. In the past two days, the coin has jumped by more than 20%. This performance is mostly because of technical reasons since the price was forming a triangle pattern as I will explain below. Indeed, this breakout was in line with my prediction on Cardano that was published elsewhere on Monday.

Still, in the long-term, Cardano faces significant challenges. The most significant one is that Ethereum is still going on strong. Its DeFi platforms now have a total value locked (TVL) of more than $180 billion. It also accounts for most of blockchain transactions that are in existence today.

Cardano price prediction

Cardano price

The four-hour chart shows that the ADA price has been in a tight range recently. It has remained in a narrow path even as other cryptocurrency prices rebound. However, a close look shows that the coin has been forming a triangle pattern. 

Therefore, it was relatively easy to predict that a break-out will happen. Still, since this was a symmetrical triangle, it was relatively difficult to predict the direction of this breakout. 

Now, the coin has moved above the 25-day and 50-day volume-weighted moving average (VWMA). The MACD has also kept rising. Now, with this spark, there is a likelihood that the coin will rise to its all-time high.

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