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.
ADA Chart by TradingView
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.
ADA Chart by TradingView
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.
Source: Twitter
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.
ADA Chart by TradingView
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).
ADA Market Cap Chart by CoinGecko
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.”