Cardano (ADA) Steadies Above $2 As Bulls Continue To Aim For $2.5

Cardano (ADA) has shown no signs of slowing down as the asset’s price continues to rally. The aim remains to hit a new all-time high before the year runs out. The previous all-time high for the asset is recorded at $2.45 and a price crashing saw the asset losing more than half of that value in the months following it. Then a bull rally had been triggered again in the market, which had set cryptocurrencies all across the market recording massive gains daily.

Related Reading | Bitcoin Dominance Down As Market Hits $2 Trillion, Altcoins Are Taking Over

Cardano (ADA) was not left out of this rally. The price had fallen down to the low $1 before the rally began. But as at the time of this writing, the asset had successfully gained back over 100% of its low price back in July. Its price climb has not come as much of a surprise to its community though. Work is currently ongoing on bringing smart contracts capability to the Cardano network. This would help position the project as a rival for the leading smart contracts platform, Ethereum.

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Related Reading | Cardano (ADA) Breaks $2 For The First Time Since May, Why New All-Time High Is Imminent

Hitting the $2 had been more of the hurdle for the asset. Proving to be a resistance point in the run-up. But ADA had crossed that hurdle and now the price looks to have found its footing above $2, and now, the ever-moving target that is the price of digital assets has now been set for a new run-up towards $2.5 for the asset. Breaking the previous record all-time and setting a new one.

Smart Contracts Set To Be Released

A possible push to get Cardano (ADA) towards the point bulls are aiming for will be the release of the smart contracts capability. It was announced last Friday that the launch will take place on September 12, a month from the date of the announcement. This might be a short time frame but the project had been underway for a long time.

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Related Reading | Cardano (ADA) Receives Approval To Be Listed In Japan

The announcement for the date of the mainnet launch pushed the price over $2. Since this provides a definite date for what the community had been waiting for – a way for Cardano to get into the DeFi space. With smart contracts, developers will be able to build decentralized apps (DApps) on the Cardano network to provide decentralized finance (DeFi) services to their users. And the DApp connector released last month will act as a bridge between Cardano users and decentralized applications.

As the date of the launch draws closer, investors are taking interest in the asset. Its relatively cheap price, despite being the third-largest cryptocurrency by market cap, makes it an interesting investment for investors who are looking for big returns.

Road To Cardano (ADA) At $2.5

Price movements in cryptocurrencies have always been tricky. But they work like any other market, maintaining the laws of economics. Higher demand than supply will lead to a higher price. Cardano is poised to witness this in the price when the mainnet launch for smart contracts finally happens.

Cardano (ADA) price chart from

Cardano (ADA) price chart from

ADA prices finds a landing point above $2 | Source: ADAUSD on

ADA has a total supply that is capped at 45,000,000,000. Of that number, over 71% is already in circulation. The dwindling supply and rising demand put ADA on a path to another rally.

The price of ADA is currently holding steady above $2 with a price of $2.073. Signals show positive sentiment in the community as investors continue to hold on to their coins in wait for September 12th. With most of the circulating supply of ADA already staked ahead of the launch of the Alonzo Purple means to bring smart contracts capability to the network.

Featured image from CryptoSlate, chart from


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Ethereum DEX Avoids $350M DeFi Hack Thanks to White Hat Heroics: Report

In brief

  • SushiSwap’s MISO token sale platform had an exploit that could have been used to steal $350 million worth of Ethereum.
  • A crypto researcher from VC firm Paradigm says he discovered the exploit yesterday and worked with SushiSwap to neutralize the threat.

One week after Poly Network suffered a $600 million attack (a majority of the assets have since been returned), crypto could have been rocked by another enormous hack, this time at popular Ethereum decentralized exchange (DEX) SushiSwap. The DEX managed to avoid the expensive dilemma, however, thanks to the help of a white hat hacker.

In a post published today, samczsun—research partner at crypto-centric venture capital firm Paradigm—explained how he began examining the smart contract code yesterday for the BitDAO token sale at SushiSwap’s MISO platform, a “launchpad” for new tokens. That sale ultimately went off without a hitch, raising $365 million in the process, but it all could have gone very wrong.

A smart contract is a bit of code that performs set instructions, and it is the backbone of blockchain-based decentralized apps (dapps), including the decentralized finance (DeFi) protocols that allow people to lend, borrow or trade without financial intermediaries. However, in this case, samczsun says he spotted potential issues with the smart contract. Further experimentation revealed an exploit that could lead to all of the ETH in the token auction contract being drained by an attacker.

“My little vulnerability just got a lot bigger,” he wrote, after discovering that the initial flaws were part of a potentially much larger exploit. “I wasn’t dealing with a bug that would let you outbid other participants. I was looking at a 350 million dollar bug.”

According to his post, samczsun looped in Paradigm colleagues Georgios Konstantopoulos and Dan Robinson to double-check his hypothesis. They quickly connected with the SushiSwap team to discuss possible solutions. Ultimately, after discussion between Paradigm, SushiSwap, and representatives of bug bounty platform Immunefi, they reached a decision: the BitDAO team holding the token sale would manually end the token auction to neutralize the potential threat.

The SushiSwap team shared additional information about the discovered exploit, noting that no funds were lost and no user action is needed as a result. SushiSwap will pause use of its MISO Dutch auction format until the smart contract can be updated.

SushiSwap is one of the most popular decentralized exchanges, with more than $444 million in trading volume over the last 24 hours per CoinGecko. Users can earn rewards by placing an array of Ethereum-based tokens into liquidity pools, which are used to facilitate trades without the need to directly connect buyers with sellers.

It began life in 2020 as a copycat of Uniswap, the leading DEX, but distinguished itself with the use of a native governance token, SUSHI—an approach that Uniswap soon adopted itself. SushiSwap has continued to diversify its DeFi feature offerings, including with the launch of the MISO token sale platform. We’ll see whether today’s disclosure of a narrowly avoided exploit leads to more cautious expansion ahead for the exchange.


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Pro traders know it’s time to range trade when this classic pattern shows up

A bull trend is formed when demand exceeds supply and a bear trend occurs when sellers overpower the buyers. When the bulls and bears hold their ground without budging, it results in the formation of a trading range.

Sometimes, this leads to the formation of a rectangle pattern, which can also be described as a consolidation zone or a congestion zone. Bearish and bullish rectangles are generally considered to be a continuation pattern but on many occasions, they act as a reversal pattern that signals the completion of a major top or bottom.

Before diving in to learn more about the bullish and bearish rectangle patterns, let’s first discuss how to identify them.

Basics of the rectangle pattern

A rectangle is formed when an asset forms at least two comparable tops and two bottoms that are almost at the same level. The two parallel lines can be used to join the high and the low points, forming the resistance and support lines of the rectangle.

The duration of the rectangle could range from a few weeks to several months and if this time is shorter than three weeks it is considered a flag. Typically, the longer an asset spends in consolidation, the larger is the eventual breakout or breakdown from it.

Bullish rectangle pattern

Bullish rectangle pattern. Source: TradingView

As shown above, the asset is in an uptrend but after the rally, some bulls took profits and this created the first reaction high. After the price corrects, several dip buyers jump in and arrest the decline, which forms the first trough.

As demand exceeds supply, the asset attempts to resume its up-move but when the price nears the previous reaction high, traders book profits again. Joining these two high points with a straight line forms the resistance of the rectangle. When the price turns down, buyers defend the earlier reaction low and this forms the support.

It is difficult to predict the direction of the breakout beforehand and the price could trade between the support and the resistance for a few weeks or even months. For this reason, it is better to wait for the price to escape the rectangle before turning bullish or bearish.

In the above example, the price breaks out of the resistance of the range as demand exceeds supply. This could result in the resumption of the uptrend.

Bearish rectangle pattern

Bearish rectangle pattern. Source: TradingView

As shown in the above example, the asset is in a downtrend but when the price reaches a level deemed as undervalued by traders, dip buyers absorb the supply and form a reaction low. Bulls then attempt to reverse the direction but the sentiment is still negative and traders sell on rallies, forming the reaction high.

Traders again buy the dip when the price reaches the first reaction low but the bears stall the recovery near the earlier reaction high. Thereafter, the price gets stuck between the parallel lines, forming a rectangle.

The bearish rectangle pattern completes when the price breaks and closes below the support of the range. This generally results in the resumption of the downtrend.

A bullish continuation rectangle pattern

THETA/USDT daily chart. Source: TradingView

THETA had been in an uptrend before hitting resistance near $0.80 on Sep. 30, 2020. On the downside, buyers stepped in and arrested the correction near $0.55. Thereafter, the price remained stuck between these two levels until Dec. 15, 2020.

The THETA/USDT pair broke above the rectangle on Dec. 16, 2020, which indicated that the bulls had overpowered the bears. This signaled the resumption of the uptrend.

THETA/USDT daily chart. Source: TradingView

To arrive at the target objective of the breakout from the rectangle pattern, calculate the height of the rectangle. In the above case, the height is $0.25. Add this value to the breakout level, which is $0.80 in the above example. That gives the target objective at $1.05.

After a long consolidation, when the uptrend resumes, it may overshoot the target by a huge margin as is the case above. Traders can use the target as a reference point but the decision to close or hold the trade should be taken after considering the strength of the trend and signals from other indicators.

The same processes apply to bearish rectangles as shown below.

LTC/USDT daily chart. Source: TradingView

Litecoin (LTC) had been in a strong downtrend, dropping from $184.98 on May 6, 2018, to $73.22 on June 24, 2018. The buyers stepped in at this level and attempted to form a bottom but the bears were in no mood to relent. They stalled the recovery at $90 on July 3, 2018. Thereafter, the LTC/USDT pair remained range-bound between these two levels until Aug. 6, 2018.

The bears reasserted their supremacy and pulled the price below the rectangle on Aug. 7, 2018. This resumed the downtrend.

LTC/USDT daily chart. Source: TradingView

The target objective following the breakdown from a bearish rectangle is calculated by deducting the height of the rectangle from the breakdown point. In the above case, the height of the rectangle is $17. Deducting it from the breakdown level at $73 presents a target objective at $56.

The rectangle as a reversal pattern

ETH/USDT daily chart. Source: TradingView

Ether (ETH) topped out at $1,440 in January 2018 and started a strong downtrend, which reached $81.79 in December 2018. This level attracted strong buying from the bulls and the ETH/USDT pair made a sharp recovery. However, bears stalled the recovery near $300 in June 2019. Thereafter, the pair remained stuck between these two levels until July 24, 2020.

The bulls pushed the price above the rectangle on July 25, 2020, which suggested the start of a new uptrend. The bears tried to pull the price back below the breakout level at $300 but failed. This showed that the sentiment had turned positive and traders were buying the dips. The pair resumed its uptrend in November 2020.

Although the pattern target of the breakout from the rectangle was only $518.21, the pair rose to an all-time high at $4,372.72 in May.

Key takeaways

The rectangle pattern is a useful tool because it can act both as a continuation pattern and a reversal pattern. If the rectangle is large, traders may buy near the support and sell near the resistance.

To benefit from the rectangle and avoid getting whipsawed, traders can wait for the price to break and sustain above or below the pattern before establishing positions.

The target objective should only be used as a guide because when the price breaks out of a long rectangle it tends to overshoot the target objective by a huge margin.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.