Cardano (ADA) rockets to fresh 2020 highs; Here’s what’s behind this movement 🚨 This article is 4 years old...
Cardano (ADA) rockets to fresh 2020 highs; Here’s what’s behind this movement
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Updated: Jul. 25, 2020 at 9:32 pm UTC
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Cardano’s price just set a fresh 2020 high. Today’s sharp climb comes shortly after the Shelley mainnet transition process was launched, with ADA investors taking this as a “buy the news” opportunity.
The cryptocurrency is now pushing up against some substantial resistance, but the technical significance of this latest movement does indicate that further upside could be imminent.
One analyst pointed out that today’s upswing allowed ADA to break out of a bull pennant that was formed while looking towards its daily chart.
Other fundamental data metrics also indicate that this latest push higher may simply be the start of a much larger movement. According to Cardano’s “social volume,” the uptrend is not yet showing signs of faltering.
Cardano sets fresh 2020 high following Shelley hard fork initiation
Yesterday, Cardano parent company IOHK initiated the Shelley hard fork process, which will take place over the next five days.
The team does have until Monday to abort the process if any unexpected problems are encountered.
Investors were pleased to see that the final step towards transitioning from Byron to Shelley was completed, and the cryptocurrency’s price has been surging in the time since.
At the time of writing, Cardano is trading up 12 percent at its current price of $0.137. This marks a notable climb from its recent low $0.115 that was set earlier this week.
While speaking about the technical factors driving this movement, one analyst noted that it appears to have been rooted in a break above the upper boundary of a bull pennant. This could also open the gates for it to see further upside.
“ADA (BTC) Daily chart – Accelerating off this bull pennant break.”
Here’s why ADA could continue pushing higher
In addition to confirming this bullish technical pattern, data regarding the cryptocurrency’s social activity also suggests that it is far from peaking.
According to the “social volume” indicator from the analytics platform Santiment, Cardano’s latest price rise has not yet reached “frenzy” territory, as social mentions of ADA remain tempered.
This indicator tends to show when an asset is forming a short-term top based on a sharp anomalous rise in social volume.
As seen in the chart, this latest price rally has yet to generate this type of surge in social volume, signaling that Cardano may be able to push higher in the near-term.
One factor that could halt this price rise in its tracks is the potential cancellation of the Shelley hard fork process between now and Monday, although there are no indications that this will occur.
Cardano Market Data
At the time of press 9:32 pm UTC on Jul. 25, 2020, Cardano is ranked #6 by market cap and the price is up 12.5% over the past 24 hours. Cardano has a market capitalization of $3.57 billion with a 24-hour trading volume of $530.54 million. Learn more about Cardano ›
Crypto Market Summary
At the time of press 9:32 pm UTC on Jul. 25, 2020, the total crypto market is valued at at $293.86 billion with a 24-hour volume of $66.79 billion. Bitcoin dominance is currently at 60.66%. Learn more about the crypto market ›
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Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source.
Input Output
Input Output Hong Kong (IOHK) is a research and development company committed to using the peer-to-peer innovations of blockchain to build accessible financial services for all.
Santiment
The Santiment platform gives users a 360° overview of the crypto market and its biggest driving forces.
