The Cardano price relentless rally accelerated in the overnight session as demand for the coin kept rising. ADA is trading at $2.7970, which was its all-time high. It has risen by more than 175% from its lowest level in July, bringing its total market capitalization to more than $89 billion. This means that the coin is bigger than HSBC, the biggest bank in Europe.
There are several reasons why the Cardano price has had a relentless rally in the past few weeks. First, Cardano developers are expected to provide a status update on their deployment in Ethiopia.
In an interview with Bloomberg, Charles Hoskinson said that they will deliver an update in the second half of the year. This could provide more information about the state of the deployment and the success rate.
Second, Cardano is rallying as investors come back to cryptocurrencies. Indeed, other key cryptocurrencies like Bitcoin, Ethereum, and Binance Coin have all rebounded. Most notably, Bitcoin has crossed the key milestone at $50,000. In most cases, Cardano and other altcoins tend to move in the same direction as Bitcoin.
Third, the concept of fear of missing out has come back to Cardano. With the ADA price rising, the number of people buying the coin has risen. For one, the total volume of Cardano traded has jumped to more than $6 billion per day. In July, this volume was typically below the $2 billion level.
Fourth, the Cardano price has risen as investors wait for the upcoming Alonzo hard fork that will introduce the concept of smart contracts. Cryptocurrency prices tend to rally before a major update.
Turning to the daily chart, we see that the Cardano price jumped above the key resistance level at $2.4760, which was the previous all-time high. This price was also along the upper part of the cup and handle pattern. Still, a closer look shows that it did not form a handle part.
The price also moved above the 25-day and 50-day exponential moving averages (EMA). Therefore, the next key level to watch is $3. However, before that, we expect that a pullback will happen as the coin forms the handle section.