The crypto mood is ecstatic, and so are Cardano traders.
At the time of writing, Cardano prices were relatively stable on the last day of trading, adding single digits week-to-date.
Even so, ADA is still perched at fifth, effectively making the project one of the most valuable in the space.
Cardano Market Overview
The question in everybody’s mind is whether Cardano, in the weeks ahead, can shake off bears and gallop higher in a buy trend continuation pattern.
Understandably, a big part of this has to do with the project’s development and smart contracting activation.
This will be massive for Cardano, effectively putting it at par with others like Ethereum.
Progress towards that end is smooth and ADA holders, as expected, are confident.
However, the pace of the uptrend also has to do with how well candlesticks are arranged.
As of writing, ADA/USDT prices are flat-lining and surprisingly pinned below July 2021 lows of $1.5.
From the daily chart, the liquidation line of $1.5 marks a critical level—and ought to be broken if buyers are to come on top in subsequent months.
Already, there are subtle hints of strength.
For example, the green bars of the past ten days were a follow-through of the double bar bullish reversal pattern of July 20 and 21.
These may form the base of the next wave higher, ideally back towards H1 2021 highs of $2.4.
Cardano Fundamentals are Solid
And the sentiment around ADA reaching this level is high.
Charles Hoskinson, the technical lead of IOHK, recently dismissed Peter Brandt’s technical analysis, which suggested that ADA was on the brink of a collapse.
I remember being scoffed at unmercifully when I identified this top in $LTCUSD back in mid 2018
— Peter Brandt (@PeterLBrandt) July 30, 2021
He drew parallels between ADA/USDT and LTC/USD of mid-2018 when Litecoin peaked before sinking to as low as $20.
Charles had no kind words for technical analysis, terming it as obsolete in the age of computers.
In his view, this trading method is useless and ineffective in the age of AI and big-data-powered black-box models.
Fundamentally, Charles explains, ADA is strong and the future bright. Cardano is the most active in developer activity.
#Cardano number one every time what a team building #Cardano proud to be apart of it since the start the journey so far has be unbelievable now onto smart contracts to show the world what #Cardano has to offer 😎💥💥💥 pic.twitter.com/GvWNOx3lPG
— Darren N ☘🇮🇪 (@CryptoIRELAND1) August 5, 2021
The activation of smart contracting will give Cardano another boost:
$ADA is going to do well in the coming weeks.
Smart contracts would give Cardano a super boost.
— David Gokhshtein (@davidgokhshtein) August 3, 2021
ADA/USDT breakout Imminent
Technically, ADA/USDT is solid, favoring buyers.
Waiting for the next leg up on break of this ascending triangle. pic.twitter.com/rk095pX5pp
— Desert Angel (@desertangelo) August 4, 2021
As one technical trader notes on Twitter, the ADA price is moving inside an ascending triangle in the 4HR chart.
As such, the odds of prices breaking above the main resistance trend line is high, a net positive for bulls—and an opportunity for ADA bulls to accumulate at spot rates.
Cardano Ready for a 5-Wave Impulse Run to $7
On Trading View, another trader thinks this is the best time to fill the ADA bag.
In a 1-2-3-4-5, A-B-C Elliot wave move, ADA prices are halfway done, readying for the next push higher that may see the coin reach $7 to $10 in the next few weeks.
From the candlestick arrangement in the daily chart, ADA prices are retracing, correcting after peaking in Wave 3.
Since the correction is now complete, ADA/USDT will likely explode to $7.
Charts courtesy of Trading View
Disclosure: Opinion is that of the author. Do your own research.
Is Shentu Chain (CTK) a Good Investment?
Russian Lawmaker Suggests Nation Could Accept Bitcoin for Oil Payments
Loopring (LRC) Price Prediction 2022
Is API3 a Good Investment?
SuperRare (RARE) Price Prediction 2022
Price Analysis1 year ago
Sushiswap price adds 14% week-to-date, SUSHI rallies 40X in 7 Months
Learn2 years ago
Is Polkadot (DOT) A Good Investment?
Learn1 year ago
Yearn Finance Explained: A Simplified Guide to YFI
News2 years ago
How Will Bitcoin React if Either Trump or Biden Wins?
Price Analysis1 year ago
China FUD, Path back to $13k or $20k?
Learn2 years ago
Is Chainlink (LINK) A Good Investment?