Profit is taken for Cardano but yet another bullish break-out is near

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The Cardano price has been consolidating into a weeklong pennant and looks to be going up with a potential 28% gain for buyers to $ 3.02. The pennant began construction on 8 September with a confirmed bearish test on 10 and 13 September. The bulls have often intervened and posted a series of rising lows. Furthermore, they have already tried to break out of the pennant above the upper descending trend line, but failed for two consecutive days, September 11 and 12, with a double false break-out and this led to a step back. of the Cardano price in the following three days.

Since then ADA has consolidated with decreasing highs, respecting the descending trend line and pushing buyers and sellers against each other. It is indeed a hard-fought battle, but judging by the weekly support $ 2.35, it looks like buyers are ready to break to the upside.

Cardano enters the Smart Contracts arena

Cardano’s new Alonzo Hard Fork has come to life on its network. This made it possible to create and deploy smart contracts on ADA’s mainnet. Alonzo’s update was rolled out to testnet a few days ago, but could only be incorporated on the mainnet on September 13th. Smart contracts are self-executing computer codes that start working right after meeting certain prerequisites.

Alonzo’s update empowers Cardano with smart contract capabilities and will help improve its functionality in these ways:

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  • The update should launch Cardano and counter the excessive power of Ethereum and Solana;
  • It would help Cardano expand its ecosystem. The crypto currently has 150 projects;
  • The update would allow the inclusion of the Plutus script, which uses a simple functional language and allows users to insert scripts in chain or on the blockchain.

Techno-Graphic Analysis and Cardano forecasts

The pennant is a key element in Cardano’s continued rise, also considering the $ 2.35 price level. Judging by its behavior, this level acted as a launching pad for the bulls and to drive prices up; this will certainly have hurt the short-term bears.

As anticipated, the next step is an upward push to break the pennant (and the descending trendline). Once there, the $ 3.02 target will become much closer.

For a look at all of today’s economic events, check out our economic calendar.

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