Belgium (CoinChapter.com) — Even though most cryptocurrency markets have no positive momentum to display at the moment, expectations remain high. Cardano and are over the moon with ADA surpassing $2. Some analysts expect even higher values, although it is always best to temper expectations.
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ADA Price Outlook
Like all other crypto assets on the market, ADA/USDT is in a bit of a price pickle. With so much bearish pressure affecting all markets, ADA proves resilient by remaining well above $2. Moreover, it would appear as if the selling pressure is slowing down slightly, despite the price coming down from $2.32 to $2.01 at one point. As the technical indicator indicates Cardano is a “Buy” right now, the momentum may swing around quicker than expected.
Several traders expect bigger and better things for Cardano in the coming weeks. YMGroup sees $1.8 as the crucial support level for ADA/USDT, with the next resistance to be found near $2.4. Even though the price dip may not be over, YMGroup expects the value to remain above $2 with relative ease.
The chart by FX_Professor_88 shows similar bullish sentiment, albeit at different price levels. This user claims the support level for ADA is $1.9446, and the price will eventually make its way to $2.3051 again. A market rebound is always challenging to predict, as cryptocurrencies don’t always depict rational behavior.
The $10 ADA Prediction
On Twitter, the sentiment is somewhat similar. Not entirely abnormal, as most people will only share bullish expectations, even when the market trend says something else. August888 has re-longed his ADA position and expects the stop-loss at $2.04 to hold. So far, that plan appears to work, but the week has only just begun.
Even during a bearish market trend, there will be people who make seemingly outlandish claims. For Cardano, that individual is Chris Simon, who is somewhat convinced that ADA will hit $10 later this year. No price targets are impossible in this industry, but Cardano doing another 4x from here seems a bit steep.
As is always the case, Twitter and other social networks are not the places to seek financial advice.
Behind-The-Scenes Developments
Two developments stand out for Cardano, and both can have a long-term impact. First up is the advent of decentralized finance on the Cardano ecosystem. Although DeFire has not launched yet, there is a genuine interest in DeFi products and services. Bringing such technology to Cardano can introduce new use cases, yield farming opportunities, and so forth.
The second news piece pertains to significant transaction throughput. During Epoch 265 block #21427, a total of 309,042 transactions were processed, shattering previous records for this ecosystem. Considering how Cardano was “only” capable of processing 100,000 transactions in an epoch not too long ago, the progress is rather remarkable.
Closing Thoughts
The main question is whether Cardano will be able to buck the overall market trend. Both the technical analysis and recent ecosystem developments indicate this should be possible. Making it happen will always be a different matter in this industry. ADA Is one of the few assets still in the green over the past seven days, but that might not be sufficient to keep this momentum going.
Although the advent of DeFi on Cardano and the new throughput record are interesting, these developments don’t automatically bring value to ADA. Instead, they can trigger more speculation, which can send the market in either direction.
JP Buntinx has been writing about cryptocurrency since 2012. His interest in crypto, blockchain, fintech, and finance allows him to cover a broad range of different topics.
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