Cardano’s native cryptocurrency ADA is one of the best performing cryptocurrencies in the ongoing crypto bull run and perhaps the digital currency closest to reaching its previous all-time high.

ADA is currently trading at $2.15 after a strong rally that saw it pump by more than 44% in the last 7 days. It has so far lost some of its gains after peaking at $2.25 during Saturday’s trading session but it is still trading at an impressive level considering that it traded as low as $1.02 on July 20 before its current rally kicked off. One of the most interesting aspects of the recent rally is that it has brought ADA’s price closer to its $2.47 ATH.

ADA’s bullishness has been mimicking the overall market rally that has prevailed for the last three weeks. However, its price went parabolic after crossing above its 99-day moving average on August 10, as reflected by the strong increase in buying volume. The cryptocurrency is currently experiencing a slight correction although the overall sentiment is that it will continue rallying. It is therefore likely that we will witness ADA attaining a new ATH within the next few days if the market maintains its momentum.

Source: Binance

ADA’s gains from its recent low of $1.02 have so far resulted in a rally of more than 100% in less than four weeks. Anyone who purchased at the recent bottom would have already doubled their investment by now and would potentially be in for some more gains in the next few days if the rally continues.

What are the forces behind ADA’s impressive price action?

ADA’s aggressive rally in the last few days is because the Cardano blockchain is drawing closer to the launch of smart contract capability on its mainnet. This is a highly anticipated development because it will allow the network to unlock its full potential as a blockchain that supports decentralized apps. The native tokens tend to experience a lot of buying pressure whenever a major upgrade or development is about to be rolled out on their native blockchain. This is because investors anticipate positive changes on a network that will contribute to the token’s increased value.

The impact of the demand for ADA, which was fueled by smart contract anticipation is further pronounced by the fact that the lower friction on the uptrend because the overall crypto market is currently bullish.  The upcoming development is significant enough to cause a continued rally past its previous ATH and potentially even higher. Rival cryptocurrency ETH has also experienced a significant increase during the last few days, especially after the latest upgrade rollout. We will likely witness a similar performance with ADA when smart contracts are introduced, and potentially even higher gains considering the magnitude of its impact on network demand.

The impact of smart contract integration on the price of ADA will particularly be pronounced in the long term as Cardano taps into value from Dapps launched on its network. This makes Cardano a good long-term bet although the high circulating supply of 32.1 billion tokens will likely cap the potential gains. However, users can stake their tokens to earn extra rewards from the network.