Over the past couple of days, ADA, the native token of the emerging smart contracts platform, Cardano, has been outperforming other cryptocurrencies in the market. This started following the announcement that stated that smart contracts functionality will go live on the blockchain in early September 2021.
According to a well-followed crypto trader, Kaleo, Cardano could experience a 604% surge in price in a matter of months, if Bitcoin (BTC) and Ethereum (ETH) continue to experience an upside trend.
The analyst pointed out that Cardano (ADA) could break out in a similar fashion to Tron-based digital currency, BitTorent (BTT). He said the cryptocurrency surged relatively 1000% from $0.001 to $0.01 between March and April 2021.
Kaleo tweeted, “In a world where BTC is $100K+ and ETH is $10K+, Cardano pulling a BTT wouldn’t surprise me.”
The top crypto trader is also bullish on Cardano (ADA) against Bitcoin (BTC) and believes it’s about to break a crucial long-term resistance.
Cardano (ADA) Could Record New All-Time High Soon
According to another well-known pseudonymous crypto analyst identified on Twitter as Rekt Capital, flipping $2.30 resistance is crucial for Cardano’s quest to record a new all-time high.
Rekt Capital noted:
“The only major resistance left before a new All-Time Highs is the black level ahead (~$2.30).”
The $ADA dip gets bought aggressively and the rally continues
ADA is getting incredibly close to revisiting its final major resistance of $2.30 (black)
— Rekt Capital (@rektcapital) August 19, 2021
Another Twitter user identified as ‘Fidzcrypto’ has also noted that Cardano (ADA) is showing distinct cup and handle formation on the daily timeframe.
According to Investopedia, the cup and handle pattern is considered a bullish signal, with the right-hand side of the pattern typically experiencing lower trading volume. The pattern’s formation may be as short as seven weeks or as long as 65 weeks.
At the time of writing, Cardano (ADA), which currently occupies the 3rd position in the market, is trading at $2.49, with a relatively 17% price upsurge in the last 24 hours.