The Cardano price surged to a new all-time high as investors continued to bet on its vibrant network. ADA surged to an all-time high of $1.8, bringing its year-to-date gains to more than 900%. According to CoinMarketCap, it now has a total value of more than $56 billion and is the 5th biggest cryptocurrency in the world after Bitcoin, Ethereum, Binance Coin, and Dogecoin.
ADA is the 5th-biggest cryptocurrency
Why has Cardano surged: For starters, Cardano is a blockchain project that was started by Charles Hoskinson. The goal was to create a product that would allow developers to create quality decentralized applications that interacted with the outside environment. Cardano uses a proof-of-stake mechanism, which is usually better and faster than proof-of-work. Recently, the network introduced smart contracts that help developers build quality decentralized apps.
Cardano price is rising as investors react to recent deal made between Cardano’s developers – Input Output – with the Ethiopian government. The project will see the company develop a decentralized product for the education ministry that will reach millions of students. If it works, it will form as a standard for other countries to embrace it. ADA is the natice currency for the network.
ADA price has also surged because of the overall performance of altcoins. Indeed, most altcoins like Ethereum, Polkadot, and Ethereum Classic have surged recently. This is partly because of the Federal Reserve, which has unleashed deep liquidity to the market. It has brought interest rates to zero and boosted its balance sheet to more than $8.3 trillion. Therefore, after the weak jobs numbers last week, analysts believe that the easy money policies will continue.
Cardano price prediction
On the four-hour chart, we see that the ADA price managed to move above the important resistance level at $1.5575 during the weekend. This was the upper part of the cup and handle pattern that was forming before. The currency also rose above the bullish flag pattern that was forming a few days before. It remains above the 25-day and 50-day moving averages.
Therefore, in my view, I suspect that ADA price will keep surging ahead of the US inflation numbers scheduled for Wednesday this week. If this happens, the currency will likely rise $2. However, a drop below the support at $1.5575 will invalidate this trend.