Key Takeaways
- Cardano’s native token ADA’s rally takes it past the $3 mark
- This is the highsest the token has been so far
- The blochcian’s techncal upgrade Alonzo is due on September 12
YEREVAN (CoinChapter.com) — ADA, Cardano blockchain’s native token, rallied over 26 percent in the past week to push the price past the $3-mark.
In the week that saw positive movements from alternative cryptocurrencies (altcoins), ADA surged to a new all-time high, making good on speculations that the world’s number three token would cross $3 soon.
Recommended: Cardano community thrashes top crypto analysts for criticizing Charles Hoskinson.
Did the performance of BTC propel Cardano?
Cardano gained over 152 percent since the begging of August. By August 23, it had registered an all-time high of $2.96.
At this point, the $3 mark was a psychological resistance that fans hoped to break, pushing the token towards it throughout the second half of last month.
A few days back, analyst and trader Benjamin Cowen had predicted a bull run for Cardano’s ADA.
In his analysis, Cowen had said Cardano’s immediate rally chances depended heavily on the performance of Bitcoin (BTC).
As long as Bitcoin could stay above its 20-week moving average (back then, it was around $42,500), Cardano could aim higher, the analyst stressed.
He also predicted ADA would reach $3, followed up by another run-up to $4.
“Even $4.00 is possible I think, as long as Bitcoin holds these levels… I do believe that Bitcoin would need to probably put in all-time highs, but at this point, I think that a $3.00 ADA is possible, even a $4.00 ADA is possible at this rate,”
Cowen said.
As long as BTC remains bullish, ADA’s prospects of reaching new targets remain high.
Recommended: Ethereum (ETH) jumps 10% amid DeFi, NFT activity surge, and on-chain developments.
Cardano Smart Contracts are coming
As Bitcoin consolidated and altcoins basked in its success, Cardano did not stay far behind. However, the most important fuel that boosted ADA and propelled the sharp uptrend remains the upcoming smart contracts on the blockchain.
Ever since Cardano Chief Charles Hoskinson announced the launch of the technical upgrade, Alonzo, on September 12, the token received a lot of traction.
Hence, this week’s rally comes as no surprise to Cardano fans.
After Alonzo launches on the mainnet, the platform will support smart contracts and directly be at loggerheads with Ethereum.
With the endless possibilities it provides, the support Cardano is getting is expected.
Recommended: Donald Trump calls crypto “a disaster waiting to happen.”
Cardano has a tough journey ahead
Last month, amid rumors that Cardano chief Charles Hoskinson had predicted ADA would pull 100x, independent analyst Lark Davis had expected a tough road for the blockchain protocol.
“Ethereum TVL 114 billion, daily NFT over 100 million, daily transactions 1.2 million, 166 million addresses total. Plus, first-mover advantage and near-universal acceptance of ETH and ETH standard tokens on exchanges and in DeFi. Cardano has a lot of work to do post-launch!”
In the meantime, Cardano seeks to find support above $3 to keep the bulls behind it. If it can close the market above the mark, it can comfortably touch the $3.5 or even $4 soon.
However, if Bitcoin drops, it could spoil it for Cardano, as a dip in BTC prices will reflect on ADA as well.
