Bitcoin
BTC$19 417.13

-0.37%

Ethereum
ETH$1 054.14

-0.74%

Tether
USDT$0.998805

-0.01%

USD Coin
USDC$0.999924

-0.04%

Binance Coin
BNB$219.31

3.08%

Binance USD
BUSD$0.999713

-0.18%

Bullish cup and handle pattern sets Cardano (ADA) price up for a new ATH


20 Aug 2021

#Cardano

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.

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 ind icator 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. 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

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.

According to Investopedia: “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.”


Related

A New Era of Financial Security
A New Era of Financial Security
Cardano-based Clay Nation partners with Snoop Dogg on new NFT collection
Cardano-based Clay Nation partners with Snoop Dogg on new NFT collection
Crypto exchange Coinbase to offer ADA staking services
Crypto exchange Coinbase to offer ADA staking services
Cardano daily transaction volume surges but ADA prices slump
Cardano daily transaction volume surges but ADA prices slump
Cardano price paints 'death cross' with ADA at two-month lows vs. Bitcoin
Cardano price paints 'death cross' with ADA at two-month lows vs. Bitcoin
Cardano to enable new DeFi stablecoin with Coti
Cardano to enable new DeFi stablecoin with Coti
ADA price drops 10% following Cardano’s long-awaited smart contracts rollout
ADA price drops 10% following Cardano’s long-awaited smart contracts rollout
Cardano launches smart contracts after successful hard fork
Cardano launches smart contracts after successful hard fork
ADA price hits $3 for the first time as Cardano, Ethereum lead crypto super bull cycle
ADA price hits $3 for the first time as Cardano, Ethereum lead crypto super bull cycle

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 57.6% 94 $19 417.13 -0.37% -6.69% $370 518 379 758 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 56% 91 $1 054.14 -0.74% -7.16% $127 934 699 226 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 95.2% 1 $0.998805 -0.01% -0.05% $66 153 066 492 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 96% 1 $0.999924 -0.04% 0% $55 798 347 438 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 58.8% 84 $219.31 3.08% -4.71% $35 808 055 268 BNB 7 days price change
6 Binance USD (BUSD) BUSD Binance USD predictions 91.2% 1 $0.999713 -0.18% 0.03% $17 542 191 048 BUSD 7 days price change
7 XRP (XRP) XRP XRP predictions 62.8% 72 $0.316356 -1.24% -13.78% $15 293 642 726 XRP 7 days price change
8 Cardano (ADA) ADA Cardano predictions 64.4% 77 $0.450457 0.39% -7.35% $15 285 845 233 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 65.6% 74 $32.57 2.28% -14.16% $11 179 080 080 SOL 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 65.2% 76 $0.065111 -0.31% 0.92% $8 638 322 639 DOGE 7 days price change
11 Dai (DAI) DAI Dai predictions 92% 1 $1.000095 0.04% 0.03% $6 778 457 853 DAI 7 days price change
12 Polkadot (DOT) DOT Polkadot predictions 67.2% 72 $6.67 -1.75% -14.72% $6 584 853 900 DOT 7 days price change
13 TRON (TRX) TRX TRON predictions 56.4% 91 $0.065036 1.48% 2.02% $6 015 244 429 TRX 7 days price change
14 UNUS SED LEO (LEO) LEO UNUS SED LEO predictions 72% 55 $6.09 2.86% 4.89% $5 813 814 977 LEO 7 days price change
15 SHIBA INU (SHIB) SHIB SHIBA INU predictions 62.8% 71 $0.000010 1.53% 0.03% $5 532 168 891 SHIB 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.