Cardano Adds 18%, Will ADA Bulls Breach $2 Due to Smart Contracts?

Bitcoin might be the most valuable currency. However, its dominance has been—encouragingly—been on a downtrend.

The decoupling is favorable, especially for altcoins—a blanket term to define other coins/projects that aren’t Bitcoin.

A travesty, right?

Even so, Cardano is etched in the Top-10 market cap leader-board due to its value proposition.

The Charles Hoskinson artwork is being polished; many more hours need to be sunk before the final reveal.

Cardano is Outperforming BTC and ETH

For now, the project is preparing for the third phase, Goguen.

As a primer, native assets, NFTs, and tokenization are now possible in the peer-reviewed platform. After HFC Mary, the final–ending with Alonzo–will usher a period of DeFi, scalability, and many more functionalities. These features will complement the level of distribution brought by Shelley and ADA Staking pools.

Presently, traders are closely watching price action.

The dump down of Bitcoin didn’t adversely affect ADA prices. Week-to-date, ADA is up a massive 18 percent and is one of the top performers in the top-10. Noticeably, the decoupling and surging interest have already seen participation—average trading volumes—over the last 24 hours spike in tandem.

Perched at eighth, ADA is changing hands at $1.73 from a $6.6 billion in trading volumes.

Accordingly, it is the expectations from the wider crypto trading community and Cardano followers that may be keeping ADA bulls.

Regardless of what would have panned out, ADA bulls are optimistic, explaining the many ADA/USDT technical analysis pointing for a surge towards $10 or better in the coming months.

ADA/USDT to Reach $2.5

Off in Trading View, WyckoffMode expects ADA prices to break above $2 towards $2.5.

From the weekly chart, he says the rapidity of the breakout towards $2.5 would largely depend on the strength of the upsurge closing above the $2 round number.

It is the same position held by Yuriy_Bishko. Based on ADA/USDT price action in the 4HR-chart, the analyst predicts bulls to force prices above the $2 level to above $2.5 in a buy trend continuation pattern.

As observed from the 4HR chart, ADA/USDT prices are breaking off after a protracted period of consolidation. He marks out the consolidation traced from early March, ending in early May 2021 when bulls broke above $1.5—another round number now support previous resistance.

In a buy trend continuation pattern, the uptrend will be valid as long ADA/USDT buyers sustain prices above $1.5. However, a firm close above $2—last week’s high—may catalyze another wave of demand thrusting ADA to new 2021 levels.

Presently, because Bitcoin’s valuation is diving, supporters predict the uptrend to pan out slowly—not a tear. Amid this gyration, ADA would likely be within the $1.5 and $2 zone—bullish from a technical perspective.

Meanwhile, on YouTube, Exchange Rates UK TV remains upbeat on ADA’s prospect, keeping immediate price targets at $2.38 in the near term.

Still, they are issuing a warning to traders noting that the uptrend is not as solid as fundamentals are. In fact, from ADA/USDT price charts, a bear trap may have formed following the break above $1.5 in early May.

The short-term price trajectory, therefore, depends on how strong ADA bulls will hold. A break below $1.5 may trigger a selloff. On the other hand, a close above $1.8 may easily see ADA draw buyers. In that case, ADA/USDT could surge to $2 and towards their buy target at $2.38.