Cardano’s ADA Hits 3-Year High as Bets on Ethereum Rivals Boom
Cardano’s native asset ADA was among the best performers on Wednesday as bulls pushed its price up by more than 18 percent.
The fourth-largest cryptocurrency hit $0.87, its highest levels in more than three years, as traders increased their bids for top Ethereum rival assets. They include Polkadot’s DOT (+5%), Avalanche’s AVAX (+60%), Chainlink’s LINK (+12%), and Near Protocol’s NEAR (+9%).
Cardano hits a 3-year high. Source: ADAUSD on TradingView.com
Traders flocked into smart-contract platforms amid a growing hype surrounding their operability in the decentralized finance sector. This year’s start experienced a bullish boom across the DeFi protocols, with the total value locked inside their Ethereum-based smart contracts crossing $39bn on February 10.
That strained the Ethereum blockchain as it hosts a majority of DeFi projects. As a result, its transaction confirmations got delayed, and network fees surged. It prompted speculators to see a potential client outflow into Ethereum’s top rivaling projects.
Hence, protocols like Cardano recorded enormous gains in their token valuations. ADA surged by more than 380 percent on a year-to-date timeframe owing to DeFi tailwinds.
What’s Next for Cardano?
Traders expect Cardano to repeat its rival Ethereum’s bull run that saw it claiming an all-time high this week.
“ADA continues its move up, with only two primary resistance levels remaining before fresh all-time highs. The first central area of resistance is the black area ahead. ADA is now inside the $0.72 – $0.94 range. And over time, ADA will keep rising towards the black.”
Cardano trade setup, as shared by Rekt Capital. Source: ADAUSD on TradingView.com
A part of ADA’s upside boom also comes from a declining Bitcoin Dominance. As the top cryptocurrency corrects lower or sideways after establishing its record high, it expects to transfer a portion of its capital to rivaling assets like Ethereum, Cardano, and others. Traders call it “altcoin reason.”
Cardano is attempting a breakout against Bitcoin. Source: ADABTC on TradingView.com
For instance, the chart above shows ADA/BTC attempting a breakout move above a long-term resistance level from mid-2019, eyeing extended upside rallies towards 2,352 sats. Such a move expect to send ADA/USD to its all-time high.