At this point, there isn’t a crypto investor who hasn’t heard of Cardano. The network is known to be Ethereum’s number 1 competitor as one of its co-founders founded Cardano after exiting the project. In the last month alone the growth has been enormous. Achieve returns of over 100% within a month alone.
Related reading | Crypto analyst sets Cardano’s (ADA) path at $ 4
Cardano’s native token ADA has already broken its previous all-time highs, while most of the market is still trying to hit its April / May highs again. This has given the project much needed publicity as the race for smart contract capability continues. If everything goes according to plan, the Alonzo Purple Hard Fork will hit the market on September 12, bringing DeFi and NFTs into the ecosystem.
Cardano (ADA) is running towards $ 3
Crypto analyst Benjamin Cowen also puts the price at $ 3 if Bitcoin can stay above the 20-week SMA (simple moving average). Name the price of bitcoin as a major driver of the asset. BTC has held trading above its 100-day moving average, which is above the 20-week SMA. If Cowen is right, ADA is set for another bull rally.
ADA Price Aims at $ 3 | Source: ADAUSD on TradingView.com
ADA has also held trading levels above the 100-day simple moving average. The average transaction volume is currently $ 121 million. With a market cap of $ 89 billion and a coin retail price of $ 2.82. The asset’s strength has also grown and is currently 13% above the 100-day average.
Related reading | Cardano: Alonzo is entering the final phase, Smart Contracts On The Horizon
As more and more investors become interested in Cardano and its returns, the number of owners will increase. Coupled with the fact that ADA has the highest amount of coins deployed with over 70% of the current market supply, ADA is expected to test $ 3 again. And with a significant increase in momentum, the asset is more likely to break the $ 3 resistance point the second time around.
More prominent of these was Cardano’s incredible price run, in which the asset ranked number 3 in the top crypto coins by market capitalization. Knock out Binance’s native BNB token to take its place. ADA had previously tested the $ 3 price level but was knocked down at that resistance point. The value of ADA is expected to skyrocket in the following weeks, leading to the hard fork.
Related reading | Cardano founder (ADA) reacts to criticism of new crypto partnership
DeFi and NFTs coming to Cardano will also add value to the asset. As more and more investors move away from Ethereum due to rising fees, Cardano is the next natural competitor to take these users away. While the blockchain doesn’t offer the lowest fees available, it is significantly lower than EThereum. While Ethereum’s TPS (transactions per second) is currently 30, Cardano offers 257 TPS.
Featured image from Currency.com, chart from TradingView.com