Cardano (ADA) stays above $2 as bulls continue to target $2.5
Cardano (ADA) shows no signs of losing strength as the asset price continues to climb. The target remains to reach a new all-time high before the end of the year.
The previous ATH (all-time high) price for ADA was at $2.45, and a price drop caused the asset to lose more than half of that value in the following months. Then, a bullish rally triggered again in the market, which had seen cryptocurrencies across the market post massive daily gains.
Cardano (ADA) joined this rally. The price had fallen to a low of $1 before the rally began. But at the time of writing, the asset had successfully recovered more than 100% of its lows in July. However, its price rise has not come as a surprise to its community. Work is currently underway to bring Smart Contract capability to the Cardano network, helping to put the project as a rival to the leading Smart Contract platform Ethereum.
Reaching $2 had been more the hurdle for the asset. It is proving to be a point of resistance in the run-up. But ADA had crossed that hurdle, and now the price seems to have found its equilibrium above $2, and now, the constantly moving target that is the digital asset price is set for a further rise towards $2.5 for the asset—breaking the previous record and setting a new one.
Smart Contracts release
One possible impetus to move Cardano (ADA) towards where the bulls aim will be the launch of Smart Contracts capability. Last Friday, Cardano developers announced that the launch would take place on September 12, one month from the announcement date. It might be a short period, but the project had been in the works for a long time.
The announcement of the mainnet launch date lifted the ADA price to over $2. The project now has a definite date for release. The community had been eagerly waiting for a way for Cardano to enter the DeFi space. With Smart Contracts, developers will create decentralized applications (DApps) on the Cardano network to provide decentralized financial services (DeFi) to their users. And the DApp connector launched last month will act as a bridge between Cardano users and decentralized applications.
As the launch date approaches, investors are becoming interested in the asset. Despite being the third-largest cryptocurrency by market capitalization, its relatively low price makes it an exciting investment for investors seeking high returns.
The road to $2.5
Price movements in cryptocurrencies are always a tricky thing. But they work like any other market, keeping with the laws of economics. Higher demand than supply will lead to a higher price. Cardano will reflect this in its price when the Smart Contracts finally launch in the mainnet.
ADA has a total supply capped at 45,000,000,000,000. Of that number, more than 71% is already in circulation. Declining supply and rising demand put ADA on track for another rally.
The price of ADA is holding steady above $2 with a price of $2.073. The signs show positive sentiment in the community as investors continue to hold on to their currencies in anticipation of September 12.
With most of ADA's circulating supply already staked ahead of Alonzo Purple's launch, the means to bring Smart Contract capability to the network.
Another jump to $5?
Dan Gambardello recently charted a "clear course to $5" for ADA. He charted its historical RSI, taking into account all the developments occurring inside the Cardano ecosystem. He stated how on a weekly chart, while Cardano became overbought in February, it made a 140% leap to its ATH. Another 140% jump will put ADA into the $5 mark.
ADA wasn't in the same overbought zone as it was back in February. However, according to its daily and weekly RSI, ADA has many 'upside potential.' Notably, on August 14, ADA's daily RSI was as high as it was in February. Thus if a similar RSI trend remains, Cardano's
path to $5 could be right in front of us.
Downside possible too
When everything looks nice, it most definitely isn't. In the case of Cardano, one thing didn't fit,
and that was the low trade volumes during the current rally. The January and May rallies had considerably higher trade volumes as compared to now. Even though ADA was close to its ATH, volumes were almost 50% lower. The low number of participants means that previous bull runs had a lot of activity and investor's momentum.
So, while everything else favors ADA's rally ahead, it needs more market participants. Additionally, ADA must break away from its consolidation at the $2.15 mark for a quick run. In the long-term, while ADA will rise and shoot up to $5, RSI and volume data will play a vital role in the price durability.