Today, Cardano‘s native token, ADA, gained almost 7%, which moved it close to its multi-month peak price. Per TradingView and Cointelegraph data, ADA is attempting to break out of its resistance levels to attain $1.61, which would be its peak price since mid-June.
ADA Still Struggling To Overcome The $1.61 Resistance Price
As of this writing, ADA is still struggling to overcome the $1.61 resistance level. Regardless, its performance was so impressive that famous crypto trader Peter Brandt commended its recent bullish run.
Brandt tweeted that “ADA surpassing its July 4 peak is an indication that it has overcome the possible bear in its head & shoulder (H&S) top.” “In truth, this price movement can be termed bullish unless the price declines below 1.30,” he concluded.
ADA/USD 1-day chart. Source: TradingView
According to Brandt, ADA/USD’s run to a peak of august 10 has helped it overcome a head & shoulder that it constructed recently. Also, famous Dutch crypto trader, Micheal Van de Poppe, echoed the thoughts of Brandt.
He said, ” even though it’s yet to break a downtrend yet, it’s still a good bounce and looks good.” Van de Poppe further said, “ADA is showing a strong response against Bitcoin after attempting to retest its support.”
ADA/BTC 1-day chart. Source: TradingView
Like all other altcoins, ADA set a new all-time high of $2.60 around mid-May and has since been on a decline. Bitcoin and the altcoins have been falling in price following Chinese authorities’ efforts in chasing away all Bitcoin miners from the country – a situation that resulted in a massive decrease in the Bitcoin hash rate.
Some Altcoins Are Outperforming Bitcoin
Ethereum is riding on the high of a successful London hard fork upgrade, and most altcoins are showing gains more than the almost 19% gain posted by Bitcoin. These gains are evident in the weekly timeframes.
ETH has gained 26% in the last week, and after reaching $3,250, it has cooled off a little and now trades at around $3,120. As widely reported, this week is the first time for over two months that the entire crypto market cap will be close to $2 trillion.
ETH/USD 1-day chart. Source: TradingView
High Expectations For Cardano’s Alonzo Upgrade
In the next month, Cardano will eventually deploy its Alonzo smart contract upgrade, which will allow decentralized applications to be developed on it. The level of high expectations within the Cardano ecosystem concerning the upgrade has caused some market analysts to predict that the ecosystem’s native token is about to experience the sharpest breakout in its short existence.
Daily metrics show that ADA is surpassing the $1.51 range for the first time in one month. Hence, the market sentiment is that the token is preparing for a long bullish run. PA Coin CEO, David Gokhstein, opined that the launch of Cardano’s smart contract would cause the ADA to have its price performance in its history. The success of the smart contract launch might cause lots of decentralized applications to move to Cardano from Ethereum.
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