Cardano’s price just set a fresh 2020 high. Today’s sharp climb comes shortly after the Shelley mainnet transition process was launched, with ADA investors taking this as a “buy the news” opportunity.
The cryptocurrency is now pushing up against some substantial resistance, but the technical significance of this latest movement does indicate that further upside could be imminent.
One analyst pointed out that today’s upswing allowed ADA to break out of a bull pennant that was formed while looking towards its daily chart.
Other fundamental data metrics also indicate that this latest push higher may simply be the start of a much larger movement. According to Cardano’s “social volume,” the uptrend is not yet showing signs of faltering.
Cardano sets fresh 2020 high following Shelley hard fork initiation
Yesterday, Cardano parent company IOHK initiated the Shelley hard fork process, which will take place over the next five days.
The team does have until Monday to abort the process if any unexpected problems are encountered.
Investors were pleased to see that the final step towards transitioning from Byron to Shelley was completed, and the cryptocurrency’s price has been surging in the time since.
At the time of writing, Cardano is trading up 12 percent at its current price of $0.137. This marks a notable climb from its recent low $0.115 that was set earlier this week.
While speaking about the technical factors driving this movement, one analyst noted that it appears to have been rooted in a break above the upper boundary of a bull pennant. This could also open the gates for it to see further upside.
“ADA (BTC) Daily chart – Accelerating off this bull pennant break.”
Here’s why ADA could continue pushing higher
In addition to confirming this bullish technical pattern, data regarding the cryptocurrency’s social activity also suggests that it is far from peaking.
This indicator tends to show when an asset is forming a short-term top based on a sharp anomalous rise in social volume.
As seen in the chart, this latest price rally has yet to generate this type of surge in social volume, signaling that Cardano may be able to push higher in the near-term.
One factor that could halt this price rise in its tracks is the potential cancellation of the Shelley hard fork process between now and Monday, although there are no indications that this will occur.
Cardano, currently ranked #6 by market cap, is up 12.5% over the past 24 hours. ADA has a market cap of $3.57B with a 24 hour volume of $530.54M.