Profit-Taking Kicks Into Cardano, But Trend Remains Unbroken | What To Expect?
The buyers in the crypto market have re-entered the fray, resuming the market's dominating rise. The buyers have moved up after a long period of consolidation, pushing through major resistance levels. In fact, a number of the top cryptos in terms of market capitalization have just surpassed their all-time highs. The most recent of all is the Cardano market that has made an all-time high after Terra and Solana.
Cardano (ADA) is the first of the top five cryptocurrencies to trade above its recent all-time high. The price behavior in the crypto market is a clear indicator of the deployment of capital. Cardano has clearly attracted the interest of institutional players, despite not receiving as much attention as BTC and ETH.
Despite the announcement that Ethereum is switching from proof-of-work to proof-of-stake, the proof-of-stake Cardano blockchain is surging higher. Cardano is unaffected by direct competition from the altcoin king – Ethereum, as the team is confident in its technology and future milestones.
ADA Surpasses BNB in Market Cap
Cardano has risen to become the world's third most valuable cryptocurrency, with a market capitalization of $84 billion. Cardano has taken over the Binance coin after doubling its market price in the previous two weeks (BNB). Cardano is currently worth roughly a couple billion more than BNB. If BNB, too, reaches its all-time high of $680, the position might move again, but if ADA continues on its current path, the positions could remain unchanged.
Cardano has definitely caught the attention of investors in the institutional space, as its prices have risen dramatically since the beginning of August. In fact, even after 30 trading sessions, the bulls appear to have maintained their pace.
With the purchasers' persuasive strength, the all-time high at $2.4 established in mid-May was broken this month. The uptrend continued to trade higher at the ATH, reaching a new high of $2.96, which is over 20% higher than the previous ATH.
ADA Rises Ahead of Shelley’s Major Update
The key driver of the current ADA rise is thought to be strongly linked to the upcoming big tech improvements in Cardano. Cardano is planning to enter the booming decentralized finance (DeFi) and smart contracts market with the forthcoming upgrade. The Ethereum network will face significant competition as a result of the upgrade.
Cardano is presently in the second of five main development "eras" - Byron, Shelley, Goguen, Basho, and Voltaire. The ‘Alonzo Hard Fork,' which will be released next fmonth, is the third big upgrade in this era. This upgrade will completely transform the present system by introducing smart contracts similar to those seen in Ethereum. Users may now utilize ADA to generate non-fungible tokens (NFTs), an area that has seen a lot of growth recently.
Cardano on Japanese Crypto Exchanges Soon
Furthermore, the Cardano's coin will be offered on Japanese crypto exchanges, which are recognized for having stringent requirements for listing a cryptocurrency. The fact that ADA has met the standards and has been accepted for listing on Japanese crypto exchanges is extremely positive for the entire community of Cardano.
Cardano Bulls are Not Done Yet
For the past month or two, the world's third-largest cryptocurrency has been on a roller coaster ride. On the technical aspect, the trend appears to be fresh and poised for more pushes to the north.
The current Cardano market defines a strong uptrend with a series of higher highs and higher lows. Unlike many other cryptocurrencies, Cardano's upward moves are becoming stronger as the market rises. Indeed, the market scarcely responded to the downside from the latest all-time high of $2.47, demonstrating the bull's resilience.
Cardano Price Chart on Daily Timeframe | Source - ADA/USDT
The market's initial push, from $1.0, began slowly, as the market was on the edge of breaching over a key resistance level. The second push, on the other hand, broke through all of the major hurdles, maintaining the pressure to the upside. Eventually, after a fairly substantial pullback, the third push arrived, making brand new ATHs. And the fact that the surges are growing longer than the last ones signals that the bulls aren't done purchasing Cardano just yet.
Cardano Price Chart on 4H Timeframe | Source - ADA/USDT
Currently, on a smaller time frame, the market is undergoing consolidation. The prices are trading 13% lower than their newly set all-time high. The impulsive pushes are getting stronger indeed, but the pullbacks also getting deeper is a cause of concern. A strong reaction from the Support 1 could head prices back to their recent highs, but increased selling pressure at these current levels could drive the prices back down to Support 2. The price action at Support 2 remains uncertain as it would completely depend on the demand at this price range.
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