entered price discovery mode, suggesting further gains on the horizon.
Key points to remember
- Cardano just hit a new record high of $ 2.58.
- If buy orders continue to pile up, the ADA could reach $ 2.87.
- The support level of $ 2.47 must be maintained for the bullish outlook to validate.
Cardano stole the show in crypto, shattering its all-time high reached in May. Now that ADA has entered price discovery mode, a particular technical model suggests that it has more room to move up.
Cardano reaches new historic highs
Cardano has been on a roll lately as it recently hit a new all-time high of $ 2.58. The so-called “Killer” has skyrocketed 153% in the past month, as the third largest cryptocurrency by market cap.
The smart contracts launch, slated for the Alonzo network update on September 12, appears to have bullish investors on Cardano. The introduction of smart contracts on the Proof-of-Stake blockchain will allow the creation of dApps covering use cases such as DeFi and NFT, written in its internal programming language, Plutus.
From a technical standpoint, the impressive price rise seen over the past 24 hours appears to stem from the breaking of a bullish flag on the 12 hour chart. The 54% rally that took place between August 9 and 14 created the mast of the model, while the descending channel that developed immediately after formed the flag.
Further buying pressure could push the ADA up an additional 11% to $ 2.87. This target is determined by measuring the height of the mast and adding this distance to the break point.
It should be noted that Cardano needs to hold above the $ 2.47 support level for the bullish outlook to validate. A sudden surge in profit taking that pushes ADA below this critical demand barrier could trigger a sharp correction.
Based on the Fibonacci retracement level (measured from the May 16 high of $ 2.47 to the May 19 low of $ 1), a break of the support of $ 2.47 would increase the odds of a decline to $ 2.15 or even $ 1.90.
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