In this morning’s trading hours, Cardano (ADA) broke through $3, reaching a new all-time high. The bullish price action goes hand in hand with the anticipation of Alonzo’s hard fork on Sept 12.
Meanwhile, Cardano’s market capitalization touched $99 billion today. This solidifies Cardano’s third-place position in the cryptocurrency market cap rankings, behind only Bitcoin (BTC) and Ethereum (ETH).
ADA breaks through $3
Cardano has been rising since a low of $1.02 on July 20 (orange circle). On Aug 23, ADA set an all-time high (ATH) at $2.97 (red line). It then dropped, validating the previous ATH at $2.47 from May 16 as support (green area).
The correction was minor, as it only reached the 0.236 Fib retracement. ADA then generated a bullish engulfing candle and consolidated for a few days to initiate another impulse in the morning hours today. ADA has broken through $3 and is continuing its rally.
Technical indicators are bullish and support a further continuation of the upward trend. The RSI fell below the 70-line during the consolidation period, but is currently back in bullish territory. Moreover, the indicator has generated a hidden bullish divergence (blue line).
The MACD is rising again and is close to generating a green momentum bar. The stochastic oscillator has been in bullish territory since early August and confirms the strength of the upward movement.
Future movement
In a tweet yesterday, cryptocurrency trader @cryptoskini published a short-term chart of ADA that includes an ascending triangle formation. This pattern increases the probability of a bullish scenario, especially when it occurs during an uptrend.
According to the chart, the target for this pattern is the $3.60 area. As of this posting, ADA has already broken out of the pattern and is moving upwards.
The four-hour chart of ADA indeed shows that it is following a rising support line that goes back to the Aug 10 impulse. The upward targets are the $3.38 and $3.95 areas. These targets are found using the 1.618 and 2 external Fib retracement levels for the entire downward movement from May to July 2021.
Cardano already worth $99B
The bullish price action is a consequence of Cardano’s growing market capitalization. According to data from CoinGecko today, the project’s value briefly reached a record $99 billion. Cardano consolidates its place on the podium of the largest cryptocurrencies, ranking behind only Bitcoin ($942 billion) and Ethereum ($441 billion).
The rise in the ADA price coincides with the anticipation of the Alonzo hard fork, which is due to launch on Sept 12. In a recent vlog, Cardano creator Charles Hoskinson said that “everything’s green and go, we’re on schedule.”
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
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