Looking back to July 22, ADA was trading at $ 1.1 at the time. However, on August 22 Cardano posted a new ATH of $ 2.65. With ADA hovering around $ 2.5 at press time, the altcoin in third place was bullish on the one-day, one-hour, and one-week charts.
In fact, it can be argued that ADA is one of the few cryptocurrencies that has negated the effects of the May 19 crash. All 100% headlines were making money, at the time of publication, which is a rare phenomenon. So are these signs of the times when ADA is an investment beyond compare? And is this near $ 3 move a sign that the ADA could end near $ 5 soon?
High development and greater euphoria.
The upcoming Alonzo Update has fueled social sentiment as well as cryptocurrency price performance. The Cardano ecosystem in active development and its contributors to development activity have a major role to play in the asset rally.
Cardano’s development activity and contributors to development activity have maintained decent levels, regardless of the price drop or pump. This acts as the backbone of your ecosystem. It is also something that many alts miss out on and ends up undermining their credibility on the development front. Usually this also has a corresponding effect on the price.
Other than that, another thing that has been helping the Cardano rallies is the publicized social sentiment. In particular, social mentions of the Cardano and ADA hashtags have skyrocketed to the new all-time high of $ 2.65 alt. According to a tweet from Santiment,
“The crowd and their euphoric behavior at this level will have a major influence on whether prices continue toward $ 3.00 or higher.”
It will also have a big influence on whether the price continues towards $ 5.00 as well.
Why Hodling Cardano is worth it
When comparing the ROIs of the best alts against Bitcoin, it is notable that Cardano has always been the best performer or one of the best performers. At this point, Cardano appears to be posting modest returns of more than 100 times from its recent low. Also, as highlighted by analyst Benjamin Cowen, if Bitcoin sustains above the 20-week Simple Moving Average (SMA) (it was well above that at press time) in the coming days, ADA will continue to perform well. .
As cruises (medium to long term headlines) make up the majority of ADA Headlines, this section of investors has played an important role in Cardano’s price growth. At the time of writing, 72.85% of ADA hodlers were cruise ships, meaning they have a waiting period of 1 to 12 months.
In addition, both the exchange and derivatives signals showed bullish signs since the imbalance in the volume of supply and demand had a reading of 2.88%. Futures market momentum also turned bullish.
Don’t miss this warning
Putting everything aside, it cannot be ignored that ADA has also bled quite a bit in the past. In fact, when compared to the 2017-2018 peak, Bitcoin was doing better, at press time, because Bitcoin was more than double since its 2017 peak. Additionally, ADA has shown a propensity to depreciate whenever the real currency has. Therefore, any major correction could be costly.
So while the issue of the ADA hitting $ 5 is credible, it’s imperative to prepare well for minor drops along the way.
This is a machine translation of our English version.
Your opinion is important to us!