Cardano (ADA), recently reached a new all time high thanks to the rally. Altcoin’s price broke above $2.5 on Friday, setting a new trading record. While the market waits for Alonzo Purple Hard Fork to bring smart contract capability onto the grid, indicators show that the price is not at the end of its race. The increased interest in this project indicates that the coin will continue its growth. There are risks that this growth could be impeded, just like any other asset. Benjamin Cowen, crypto analyst, explained this to me.
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Smart contracts push Cardano price (ADA).
Benjamin Cowen, a crypto analyst, attributes the recent rise in digital assets to two factors. The smart contract capability, which is expected to be launched on September 12, is the first. This would place the Cardano network at an adequate level to compete with Ethereum, its largest rival.
ADA reaches new all-time high | Source: TradingView.com ADAUSD
Cowen cites Bitcoin’s current movements as reason number 2. Cohen said that Bitcoin’s rally was driven by its movement sideways above the 20-week SMA. ADA is at a point where Bitcoin is the path of least resistance. This has led to an increase in the asset’s value.
Cowen uses Bitcoin’s simple moving mean to analyze this bullish pattern. The SMA is a crucial key that would determine whether or not the bullish ADA pattern will be broken.
Bitcoin is the key to $ 4.
Benjamin Cowen posted on his YouTube channel, discussing what could be hindering Cardano’s bullish setup. (ADA). Cowen pointed out that the current setup is likely to cause a price explosion. This uptrend would depend a lot on Bitcoin. If Bitcoin stays above this level, the price of ADA would rise.
Related reading: Cardano, ADA holds above $ 2. Bulls aim for $ 2.5| Cardano (ADA) holds above $ 2 as bulls continue to aim for $ 2.5
“The only thing you should focus on right now if you want ADA to break through to, say the $ 3 mark or the $ 4, mark is what do you want? Cowen asked. Cowen replied to his question. He explained that it was essential to keep the SMA (simple moving Average) at 20 weeks. “What you want to see happen is you want to see Bitcoin just hanging around. Cool Bitcoin above the 20-week simple moving average. Cowen stated, “If it is achieved, then the past that has been least resistant to ADA is up.”
Cowen says that understanding Cardano’s movement (ADA) is dependent upon the movement of Bitcoin. “To get an idea of what ADA is doing, you have to look at what Bitcoin is doing.”
Featured image by Arabian Business, chart at Trading View.com