Smart contracts have been a revolutionary forcefulness in the blockchain industry because they take enabled the creation of decentralized finance protocols, nonfungible tokens and a new form of carrying out transactions without the need for an intermediary.

Cardano is one of the many projects that has been gaining momentum throughout 2022 and now that the project'due south long-awaited smart contract capabilities are on the verge of becoming reality, the token is on the precipice of setting a new all-time high.

Information from Cointelegraph Markets Pro and TradingView shows that after bottoming at a low of $1.02 on July 20, the price of Cardano (ADA) has surged 139% to a multi-calendar week high at $2.45.

ADA/USDT 1-mean solar day chart. Source: TradingView

Hither'due south a wait at what some analysts and traders are saying about the recent price action for ADA and what token holders may want to go on an eye on in the short term.

A bullish upturn in the 50MA

The rapidly rising price of ADA has been hard for virtually traders to ignore, especially since multiple technical indicators have now flipped bullish.

One such indicator is the 50-day moving average (50MA), which is now pointing up subsequently being on a downslope for roughly two months every bit highlighted in the post-obit nautical chart posted by pseudonymous Twitter user Pharmlord.

ADA/USD 1-day nautical chart. Source: Twitter

Equally seen in the nautical chart in a higher place, in one case crossing above the 50-MA, ADA's price doubled and is now on the verge of hitting a new all-time high at $2.46.

Flipping $2.30 to support is key

Insight into the important levels that ADA bulls demand to keep an middle on was provided by Rekt Upper-case letter, a pseudonymous Twitter analyst, who pinpointed the importance of the $2.xxx level.

ADA has already managed to convincingly surpass a lower resistance zone shown in ruby on the chart above and is now attempting to break the May 16 all-time high at $2.46.

According to Rekt Capital:

"The only major resistance left earlier a new All-time High is the black level ahead (~$2.xxx)."

Related: ADA hits $ii for the showtime time since May ahead of Cardano smart contract declaration

A cup-and-handle breakout volition confirm the ATH

According to Twitter user Fidzcrypto, ADA is showing a singled-out cup-and-handle germination on the daily timeframe.

ADA/USD 1-mean solar day chart. Source: Twitter

Investopedia cites the cup-and-handle pattern every bit a technical indicator that resembles a cup with a handle, where the cup is in the shape of a "u" and the handle has a slight down drift.

The cup portion of the design tin be seen on the chart between May fourteen and Monday, Aug. 16, while the handle is seen in the cost dip and recovery from Monday to Wed.

Co-ordinate to Investopedia:

"The cup and handle is considered a bullish betoken, with the right-hand side of the pattern typically experiencing lower trading volume. The blueprint'southward germination may be equally short equally seven weeks or equally long as 65 weeks."

The views and opinions expressed here are solely those of the author and practise not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should carry your ain research when making a decision.