ADA Enjoys Strong Bullish Charge As Cardano Approaches Smart Contract Rollout

Sydney Ifergan August 10, 2021

The cryptocurrency market is currently going through a bullish phase during which many digital assets have experienced substantial price increases. Cardano’s native token ADA is among the coins that have benefited significantly from the ongoing bullishness but it might have potentially more upside considering Cardano’s upcoming developments.

ADA is currently trading at $1.55 after rallying by 6.20% in the last 24 hours at the time of this press. The rally adds to the cryptocurrency’s previous gains and so far its price is up 19.43% in the last 7 days. An impressive performance considering that it traded as low as $1.02 in July. ADA has been on a strong bullish run for almost three weeks now.

Source: Binance

ADA’s market cap has so far grown to $47 billion courtesy of the strong buying volume that the cryptocurrency has enjoyed in the last few weeks. Its performance especially today has been so strong that it managed to break above the $1.50 key resistance level and even cross back above the 99-day moving average, reflecting the strong bullishness. If ADA maintains its current trajectory, then it will likely test the next major resistance levels at around $1.57 and $1.64. Market corrections will likely take place near those levels as some traders take profit. However, more upside is possible as the Cardano  mainnet draws closer to its smart contract rollout.

Why is ADA rallying?

ADA’s ongoing rally is due to a mix of numerous factors such as the bullish market outlook and the announcement that Cardano is now in the Purple phase of its Alonzo testnet.  Favorable news regarding a network’s development tends to trigger a wave of optimism, explaining the recent gains. However, ADA would have experienced some more resistance if the overall crypto market was in a bearish phase.

ADA might continue to enjoy the strong rally for a while longer due to the highly-anticipated smart contract rollout. So far the smart contracts have been enabled on its testnet but the rollout on Cardano’s mainnet is yet to take place. It is expected to be ready by next month and so far the official launch date has not been revealed. However, the official smart contract launch date will be a major catalyst for the cryptocurrency and its anticipation might potentially send the cryptocurrency rallying above the $2 price level.

ADA’s ability to continue rallying will also depend on whether the overall market sentiment will be favorable. Another FUD event might trigger a selloff that will undo some of the gains that it has achieved so far. U.S regulators recently introduced a bill that might potentially trigger the next wave of FUD. If the regulators ratify the bill, it might have a severe negative impact not only on the crypto market but also on the ability of major blockchains to achieve their goals.

Meanwhile. Cardano’s long-term growth looks favorable. Unlocking smart contract support will allow the network to be more attractive to decentralized app developers. The network will be able to compete more effectively with Ethereum and other major networks because Cardano will be in a position to leverage more organic growth. That kind of growth will also translate to better long-term performance for ADA.

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