Cardano’s ADA has done extremely well in 2020 in terms of price action.
As reported by CryptoSlate previously, crypto research firm Messari found that ADA is the best-performing smart contract coin, rallying 150 percent higher this year. For context, BTC is up by ~25 percent since the start of the year.
Stepping back even further, the altcoin is still up by thousands of percent from its ICO, as noted by crypto data analyst Vivek. It’s up 3,300 percent, to be exact.
Yet, an analyst says that the Cardano blockchain’s native cryptocurrency will rally even further in the weeks ahead.
ADA in an upward trend: technicals show why
According to Nik “Altcoin Trader” Patel, an author and technical analyst, technicals show that “Cardano continues to look bullish, finding support in [an important] area.”
The analyst shared the image below on Jun. 29. Patel’s chart indicates since ADA held the trendline support formed at the March lows and since it held $0.0738, it is primed to rally in the weeks ahead.
In reference to the chart, he wrote:
“Looking at the daily, trendline support has remained rock solid since March capitulation, and resistance continues to be turned to support. I am expecting continuation of the rally to follow, with $0.11 as the next area of trouble.”
To reach $0.11 from current prices, ADA will need to gain nearly 20 percent from where it sits as of the time of this article’s writing.
Patel’s analysis comes as other analysts are flipping bullish on Bitcoin. This is important to Cardano as the two cryptocurrencies have a 180-day correlation of 0.85, data from Coin Metrics suggests.
For one, Rafael Schultze-Kraft, the CTO of blockchain analytics firm Glassnode, revealed 12 on-chain statistics revealing an increase in the popularity of the “HODL” mentality.
The takeaway is that this is “long-term extremely bullish” for Bitcoin and the rest of the cryptocurrency market by extension. This is due to the fact that the more HODLing there is, the less potential sell pressure there is.
Aligned with Cardano’s bullish fundamentals
Patel’s optimistic outlook about ADA aligns with the fundamental case for the cryptocurrency.
“We will be rolling out Shelley soon. This will not just be a critical time in the history of blockchain technology, but a shift in how we leverage technology for the betterment of everyone, everywhere.”
To celebrate this launch, IOHK and other partners are hosting a summit largely focused on Shelly, this year’s Cardano Virtual Summit, that will allow the public to “learn more about the upgrade.”
Shelly is important to Cardano as pundits expect it to dramatically increase the usability of the network, leading to increased adoption and higher ADA prices.