The ADA price has surged 27% in the last 24-hours to a two-month high. But the next Cardano Bull run may just be warming up.
Until today, Cardano(ADA) struggled to clear the key resistance at $1.4600. Despite probing higher in each of the last five trading days, ADA failed to breakout.
Social media has been lit recently with enthusiasm that smart contracts may soon come to Cardano, and this morning the price finally cleared the resistance. As a result, ADA has surged a further 20% to $1.7500. This has lifted Cardano’s market cap by more than $18 billion to $55b, cementing its place as the 5th-largest cryptocurrency. This marks a stunning return to form ahead of the blockchains’ anticipated Alonzo hard fork.
This has helped the ADA price gain almost 70% from June’s $1.007 low, and if the current momentum continues, Cardano may soon be staring down the $2.0000 mark.
Clearly, the outlook is improving for Cardano. Furthermore, if the planned upgrades are successful, ADA has the potential to go much higher. Although the price action and the fundamentals are supportive, it’s easy to get carried away, and there are some signs the rally may not be sustainable at the current rate.
Cardano price outlook
In my report on August 4th, I noted:
“Should the price advance beyond $1.4604 on a closing basis, the bull case increases. In this event, $2.000 becomes a real possibility for Cardano.”
That being said, the recent breakout was not accompanied by large volume buying. This doesn’t indicate a wave of institutional money flowing into ADA.
This is likely due to some apprehension ahead of the upgrades. And a positive resolution may prove a catalyst for funds to pile in.
Furthermore, the Relative Strength Index has ventured into overbought territory, and its 80.42 reading may signal a pause or potential pullback.
However, in saying that, the ADA price action is extremely encouraging. As long as Cardano maintains $14.600, it should go higher. The first target for bulls is the June $1.8944 high. And following that, the all-time high of $2.5147 could come under threat.
This bullish view becomes invalid below $1.4600. But for the time being, that doesn’t appear to be an imminent danger.
ADA price chart (daily)
For more market insights, follow Elliott on Twitter.