Cardano Price Hits All-Time High, Overtakes Binance Coin as Third-Most Valuable Crypto
Cardano (ADA), the native cryptocurrency powering Charles Hoskinson’s public blockchain, has hit a fresh all-time high and has surpassed Binance’s native token in total market capitalization.
As of press time, ADA’s market capitalization stands at $80.7 billion compared to Binance coin’s (BNB) $72.1 billion, data from provider Messari shows.
ADA’s price is up a staggering 19% on the day and is continuing its drive from Thursday’s run where it came close to setting fresh price highs. The crypto has been on a tear in recent weeks and is up 150% from July 21 lows of $1.
Related: Bitcoin Jumps 6% Edging Above $47K on Strong Buyer Demand
ADA is currently changing hands for around $2.49 after reaching its record high of $2.55 during the Asia trading hours.
Strong levels of daily buyer volume – the most since the end of May – are matching price action on the way up signaling demand in the strength and conviction of ADA’s trend.
It would appear the Alonzo upgrade is having a significant impact on investor sentiment. The upgrade seeks to usher in smart-contract functionality and address what critics have described as one of the network’s most glaring deficiencies.
The upgrade is slated for Oct. 1, though some are betting it will overshoot and release sometime later.
Related: Cardano Nears All-Time High as Investors Await Smart Contracts
Cardano has been through multiple developmental phases including the foundational phase Byron and decentralized phase Shelley which saw the introduction of delegated staking. According to the Cardano roadmap, smart contracts will go live when the project enters its third era, Goguen.
Cardano was founded by Ethereum co-founder Charles Hoskinson in 2017 and aims to directly compete with Ethereum and other decentralized application platforms as a more scalable, secure and efficient alternative.
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Cardano defies Peter Brandt’s 90% crash warning, ADA price doubles to new high
Cardano’s native token, ADA, ignored a serious price crash warning to rally to a new all-time high.
The ADA/USD exchange rate reached $2.56 for the first time on Friday, following a 154.54% price boom that started on July 20. In doing so, the pair also ignored veteran trader Peter Brandt’s 60%–90% price crash warning, which was based on a classic bearish pattern called the head and shoulders.
I remember being scoffed at unmercifully when I identified this top in $LTCUSD back in mid 2018
Hey Cardano trolls $ADAUSD , take aim… pic.twitter.com/3gytNHW4cR — Peter Brandt (@PeterLBrandt) July 30, 2021
But a flurry of bullish fundamentals assisted Cardano to ignore bearish technical setups.
Capital rotation
At first, ADA/USD’s upside rally in the early days appeared largely in the wake of a similar boom across the cryptocurrency market, led by the euphoria surrounding its rival’s, Ethereum, major software upgrade and fresh endorsements for Bitcoin from Tesla’s Elon Musk and Twitter’s Jack Dorsey.
ADA prices also tailed Bitcoin (BTC), which has recently rallied above $48,000. But the Cardano token started outperforming Bitcoin after Tuesday as the latter turned choppy around the United States Federal Reserve’s tapering decision, as Cointelegraph covered here.
ADA price trends (black and white) vs. BTC price trends (red and blue). Source: TradingView
In detail, the ADA/USD exchange rate surged 36.81% from its Wednesday low of $1.87 versus BTC/USD’s 7.91% rally in the same period.
Other top altcoins also posted better profits than Bitcoin, hinting that traders merely rotated capital out of the flagship crypto’s market on overvaluation risks.
Altcoins 24-hour adjusted performance against the U.S. dollar and Bitcoin. Source: Messari
Smart contracts FOMO
Traders’ bids for ADA also surged due to hype surrounding Cardano’s “Alonzo” upgrade, which is scheduled for mid-September. The update expects to deploy smart contracts functionality onto the Cardano blockchain, a step that the project’s supporters say will make it a direct rival to Ethereum.
#Cardano #smartcontracts are coming…
We’re on track to meet the projected HF dates for both testnet & mainnet #Alonzo upgrade, as Nigel outlined in last week update
A new era is set to begin on Sunday 12th September 2021 $ADA pic.twitter.com/HrdrqYizhP — Input Output (@InputOutputHK) August 17, 2021
Smart contracts would enable Cardano to integrate more decentralized applications in its ecosystem, particularly decentralized finance platforms that enable automated borrowing, lending and trading services.
Technical outlook
Brandt’s bearish setup appears less likely to be realized by traders against Cardano’s bullish fundamentals.
The ADA/USD daily chart shows the pair in price discovery. Meanwhile, a Fibonacci retracement graph sketched from the swing high of $2.51 to the swing low of $1.05 spots ADA testing $2.51 as its interim resistance level.
Related: Bullish cup and handle pattern sets Cardano (ADA) price up for a new ATH
A close above the said price ceiling puts ADA/USD en route to the next resistance line at 1.618 Fib line near $3.41.
ADA/USD daily chart technical setup. Source: TradingView
Conversely, ADA’s daily relative strength indicator (RSI), now above 70, has alerted about its interim overvaluation risks. As a result, ADA/USD can undergo a certain degree of correction to neutralize its overbought status, with the next support target sitting near 0.786 Fib line (at $2.20).
Top cryptocurrency prices today: Bitcoin jumps 6%, Cardano continues massive rally
NEW DELHI: Major cryptocurrencies were trading higher on Friday. Cardano and XRP were among the biggest gainers of the day while Bitcoin also edged higher amid weaker equity markets.Many see cryptocurrencies as a store of value akin to gold, which results in buying interest whenever there is a fear that interest rates will rise or some economic slowdown will be there. The FOMC minutes released by the US central bank indicated an earlier than expected tapering.“Markets in the past 24 hours witnessed a major turnaround. Most of the cryptos that were showing bearish signs earlier, recovered quickly. Bitcoin and Ether, the two most important cryptos that usually influence rest of the market movements, broke above their immediate resistance levels. It will be interesting if the crypto markets end the week on a high note,” said Edul Patel, CEO and co-founder, Mudrex After a spurt of rally, Bitcoin has not moved much in the last one week. With a gain of about 4 per cent, most of which have come in the last 24 hours, the most valuable cryptocurrency is trading near $47,000 level.Meanwhile, the market is waiting for the IPO of Binance, the world’s largest cryptocurrency exchange. If listed successfully, it will get some badly needed legitimacy. Companies that deal in digital money are trying to grow up. Many cryptocurrency firms are restructuring themselves into more traditional entities that have boards of directors and audited financial reports.“We saw coins like Solana and Cardano do well. We are hopeful that the market will enjoy a strong rally soon,” said Sharan Nair, Chief Business Officer, CoinSwitch Kuber. Solana has been a standout altcoin in the last seven days, rising nearly 70 per cent.Cardano (ADA) positions itself as a POS blockchain platform that allows decentralized apps and smart contracts to be developed with modularity. It is designed to ensure that owners can participate in the operation of the network as a means of governance.It is one of the biggest networks to have successfully implemented the POS blockchain mechanism. In 2020, the protocol underwent a “Shelley” upgrade to scale its infrastructure furthermore and allow better Decentralized Applications (DApp) integrations. Since then, the growth of ADA has been impressive. Market Capitalization and Rank: USD 67.3bn (4)ADA made a ‘Double Bottom' pattern or a ‘W’ pattern at $1.009. It completed the pattern at $1.50 giving a breakout with good volumes and the asset witnessed a sharp rally surging almost by 141 per cent up to $2.46 making a higher top and higher bottom formation on the daily chart. Currently, the asset is trading near its all-time high and may face some resistance at these levels. We can expect another rally if the prices sustain or close above the all-time high of $2.49.(Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)