Cardano (ADA) Getting Ready For A $3 Retest?
August 30 2021 - 1:00PM
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At this point, there is not a crypto investor that has not heard of
Cardano. The network is famed for being the number 1 competitor to
Ethereum, seeing that one of its co-founders had created Cardano
after exiting the project. Its growth has been tremendous in the
past month alone. Giving returns of over 100% in the space of a
single month alone. Related Reading | Crypto Analyst Lays Out
Cardano’s (ADA) Pathway To $4 Cardano’s native token ADA has
already broken its previous all-time highs, while most of the
market is still trying to get back up to its high points in
April/May. This has provided the project much-needed notoriety as
the race towards smart contracts capability continues. If all goes
as planned, the Alonzo Purple Hard Fork will launch on September
12th, bringing DeFi and NFTs to the ecosystem. Cardano (ADA)
Running Towards $3 Crypto analyst Benjamin Cowen also puts the
price at $3 if the Bitcoin can stay above the 20-week SMA (simple
moving average). Citing the price of Bitcoin as an important driver
for the asset. BTC has maintained trading over its 100-day moving
average, putting above the 20-week SMA. If Cowen is right, then ADA
is set for another bull rally. ADA price sets sights on $3 |
Source: ADAUSD on TradingView.com ADA has also maintained trade
levels above the 100-day simple moving average. The average
transaction volume currently sits at $121 million. With the market
cap at $89 billion at a coin trading price of $2.82. The strength
of the asset has also grown, currently 13% higher than its 100-day
average. Related Reading | Cardano: Alonzo Enters Final Stage,
Smart Contracts On The Horizon As more investors take an interest
in Cardano and its returns, the number of holders will go up.
Coupled with the fact that ADA has the highest amount of coins
staked, at over 70% of its current market supply, ADA looks set to
test $3 again. And with a significant uptick in momentum, the asset
is more likely to break the $3 resistance point the second time
around. Growing Value More prominent of these have been Cardano’s
incredible price run which saw the asset clench the number 3 spot
for top crypto coins by market cap. Beating out Binance’s native
token BNB to take its spot. ADA had earlier tested the $3 price
level but was knocked down at this resistance point. ADA’s value is
expected to skyrocket in the following weeks leading to the hard
fork. Related Reading | Cardano (ADA) Founder Responds To
Criticism Over New Crypto Partnership DeFi and NFTs coming to
Cardano will also grow the value of the asset. As more investors
move away from Ethereum due to growing fees, Cardano is the next
natural competitor to take these users. Although the blockchain
does not offer the lowest fees available, it is significantly lower
than EThereum. While Ethereum’s TPS (transactions per second)
currently sits a 30, Cardano offers 257 TPS. Featured image from
Currency.com, chart from TradingView.com
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