• Cardano price has returned to 2018 high.
  • Some skeptics argue that r/WallStreetBets fanatics have overhyped the token.
  • Full decentralization will better position Cardano to challenge major rivals.

Cardano price has built a pennant continuation pattern just below 2018 high. Based on the tightness of the price action in the last three weeks, there is a high probability for a resolution to the upside in the next few days. 

Cardano price needs smooth rolling out of smart contracts

The ADA advance over the last year represents a remarkable recovery for the cryptocurrency after plunging almost 99% from 2018 high to the 2020 low. Enabling the rally has been a bullish news role for the Cardano ecosystem. The founder, Charles Hoskinson, has revealed that it will concentrate its efforts on the NFT marketplace and that his team has negotiated with many top-10 NFT marketplaces about porting them to Cardano. 

Hoskinson also announced at the Blockchain Africa Conference that Cardano was near “deals and initiatives” through public-private partnerships with several countries in Africa, intending to attract millions of users to the ecosystem.

Moving forward, the key will be whether the Cardano smart contracts update will facilitate blockchain developers to create crowdfunding, auctions, and now famous, collectibles business applications.

The pennant pattern measured move is 270%, and it targets $5.25 in the medium-term, just below the 361.8% Fibonacci extension of the February-March decline at $5.50. If the pattern evolves into a symmetrical triangle, the measured move target is $2.03, close to the 161.8% extension at $2.08, representing a 38% gain from the triangle’s breakout.

ADA/USD weekly chart

ADA/USD weekly chart

A weekly close below the triangle’s lower trend line at $1.12 and the 10-week simple moving average (SMA) at $1.09 opens the possibility for a significant decline. Clear support is situated at the 23.6% retracement of the 2020-2021 advance at $0.53.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why the Solana price could wipe out all returns since August

Why the Solana price could wipe out all returns since August

Solana shows a significant uptick in volume amidst the recent decline. The largest candle within the current downtrend and consolidation belongs to the bears. Solana price may be consolidating before it makes a move south.

More Solana news

XRP Price Prediction: One more pump then a dump

XRP Price Prediction: One more pump then a dump

XRP price has established two legs of a triangle. If the technicals are correct, XRP could rally to $0.56 and then experience a sharp sell-off. Invalidation of the triangle thesis targeting $0.56 iis a breach below $0.4564.

More Ripple news

Cardano: $1 is a fever dream for ADA as Vasil hard fork fails to trigger buying pressure

Cardano: $1 is a fever dream for ADA as Vasil hard fork fails to trigger buying pressure

After Ethereum’s Merge, Cardano’s Vasil hard fork was the most anticipated event for the crypto community this year. Surprisingly, both the events, while developing the network further, acted as a disappointment for the investors.

More Cardano news

Ethereum Classic PoW hype dissipates as hash rate declines by almost 50% in 10 days

Ethereum Classic PoW hype dissipates as hash rate declines by almost 50% in 10 days

The Proof of Work (PoW) vs. Proof of Stake (PoS) debate heated up this month as Ethereum mainnet officially shifted to the PoS consensus method. However, not everyone was a taker since many of the miners preferred the older methods instead of switching to staking.

More Ethereum news

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin price takes the first step to recovery but needs solid confirmation that will arrive after a flip of the $19,539 level into a support floor. After a successful flip, investors could expect a move up to an intermediate hurdle at $20,737.

Read full analysis

BTC

ETH

XRP