Cardano price could explode 30% in August on this chart pattern

Cardano (ADA) price could be set for a major move higher in the coming weeks on the back of the bullish flag chart pattern. Fundamentally, a major blockchain audit firm stated Cardano will become the second-largest DeFi platform after Ethereum, outpacing Tezos. 

Fundamental analysis: Cardano will outperform Tezos

After Cardano undergoes the Shelley hard fork, it will overshadow its biggest rival Tezos (XTZ). Moreover, the only smart contract platform that will be in front of Cardano is Ethereum, according to Quantstamp, a firm that has been auditing Cardano’s codebase in the last two months. 

Richard Ma, Chief Executive of Quantstamp, thinks Cardano has some of the best code in the whole blockchain industry, saying it’s at the same level as ETH 2.0’s Prysm.

“It’s clear they’ve put a lot of internal effort to solidly test and properly engineer the code and it’s really shown through the smooth launch. We also recently audited prysm from eth 2.0 and we would say that in terms of quality, similar to prysm, it is one of the best codebases we have seen,” said Ma.

Jaye Harrill, communications manager at Quantstamp, said by the end of this year Cardano could also become the second most popular smart-contract platform. He believes that Cardano is outshining Tezos as a proof-of-stake blockchain:

“The move to the Shelley era means Cardano will be the second most popular smart contract platform, second only to Ethereum by the end of the year. As a proof of stake system, it now dwarfs Tezos”.

Yesterday, Charles Hoskinson, founder of Cardano replied to EOS founder Daniel Larimer’s tweet, saying that the platform will welcome smart contracts, native assets as well as low latency later this year. 

The large percentage of decentralized apps were built on Ethereum over recent years, but Cardano may soon gain enough potential to challenge Ethereum’s dominance in the blockchain space. 

Technical analysis: A bull flag activated

Cardano has been moving higher in the past few weeks, in line with the rest of the crypto market. In the last week of July, ADA price exploded 17.5% in a single day to break above the descending trend line and activate the bull flag chart pattern.

Cardano ADA daily chart – a bull flag (TradingView)

This is a bullish continuation pattern that aims to extend the uptrend higher. A break of the flag has generated more buying of Cardano as the bulls aim to complete the pattern with a trip to $0.18. This level represents a 30% premium on the current market price of ADA and it marks the bull flag’s measured target.

Summary

Cardano will likely outshine Tezos and become the second-largest DeFi platform after the Shelley hard fork, according to the audit firm Quantstamp. In the meantime, ADA price has continued to surge as the buyers eye $0.18. 

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