Cardano has been gaining momentum for the majority of 2021. In several instances during the downturn, Cardano with its native symbol ADA has held itself in the list of top five digital assets. The smart contract capabilities of the project are close to becoming a reality as the cryptocurrency is the precipice of setting up a new all-time high.
According to the latest analysis report, the price of ADA surged 139% on a multi-week high at $2.45. The price surge came as a surprise as ADA had reached a bottom low of $1.02 on July 20 earlier this year. Analysts and traders have commented on the recent price action for Cardano, and advise token holders to keep an eye in the short term.
A pseudonymous Twitter analyst pointed out one of the important price levels that ADA bulls need to watch out for. The analyst revealed the importance of the $2.30 level, and how it is the key to supporting the digital asset. In a data report by the Twitter analyst, ADA is shown to have surpassed a lower resistance zone and is currently attempting to break its all-time high of $2.46 back on May 16. The Twitter analyst’s statements indicate that the price of ADA is left with one major resistance at $2.30 before it reaches a new all-time high.
Trader sentiment has been uneasy due to the rapid rise of ADA’s price. The exceeding growth of ADA has become difficult to ignore since multiple technical indicators have flipped bullish in favour of ADA.
Among the indicators is the 50-day moving average (50MA), which has risen high in accordance with the data chart posted by a Twitter user. The data chart shows the indicator has been heading down in a slope for 2 months and is currently pointing upwards. It implies that the price of ADA doubled, and is on the verge of reaching $2.46, a new all-time high.
Another Twitter user posted a data chart of ADA which showed a distinctive cup and handle formation on the daily timeframe. The cup and handle pattern is described as bullish technical indicators, as the right-hand side of the pattern shows low trading volume, and its formation shows a time period in weeks. The current data chart shows the price dip and recovery from August 16-18.