Successful 2022 expected: Is Cardano token ADA heading for a new all-time high?

taketonews0

?? ADA hits new all-time high in September – price has been under pressure ever since
?? “ADA Whale” sees potential in Cardano
?? Analyst bullish on ADA despite recent weak performance

Although the ADA course has been under significant pressure in recent months – despite some important updates and milestones reached – the native token of the blockchain-based project Cardano could still have some potential.

Cardano reaches important milestones

In 2020, as reported by Coin Update, Cardano transitioned to a proof-of-stake mechanism after blockchain decentralization was achieved. This was followed by three major hard fork combiner events, which are protocol changes that require everyone to update their software to the latest version in order to continue participating in the network. The “Allegra” and “Mary” upgrades have brought new capabilities to the Cardano mainnet. With the “Alonzo” hard fork, which introduced smart contract functions into the blockchain, these were then completed according to “Coin Update”.

“ADA Whale” sees potential in Cardano tokens

On Twitter, “ADA Whale” explained in several posts at the end of December last year why the cryptocurrency ADA, which underlies the Cardano network, could be about to rally.

“ADA Whale” cited the potentially imminent increase in the number of transactions per day and active addresses at Cardano as one reason, which he put at 100,000 and 150,000 respectively at the time of his Twitter post. The investor believes these numbers could more than quintuple.

In his opinion, Cardano remains one of the most actively used networks. “The scaling will occur via different streams, first gradually to keep up with growth and then exponentially in 2023,” ADA Whale said in one of his Twitter posts. The community member believes that by the end of 2022 there could be more than 250 decentralized applications (dApps), such as decentralized cryptocurrency exchanges, lending platforms, launchpads, etc. Cardano DeFi may be slow to start, but the Total Value Locked (TVL) serves as “a high-level valuation metric to determine the amount of assets currently deployed in the DeFi space as a whole,” according to Coin Update , topped $10 billion by the end of the year, according to ADA Whale in one of his posts, adding “Dapp store with certification levels goes live. Ease of use is leading people to replace their bank stack with Cardano DeFi. Digital Identity projects are thriving, connecting DeFi to the real world. UTXO DeFi will be different and better.”

In addition, according to ADA Whale, Cardano offers low fees, a green footprint and will become the go-to place for projects like World Mobile and Singularity that have real-world impact. In the years to come, Cardano is likely to increase its partnerships even further, as Coin Update reports, as it seeks to “provide people with an open, decentralized, and accessible network to manage and support a variety of essential services .” In the meantime, the network is developing interoperable capabilities. “ADA Whale” mentions Milkomeda, a second-layer solution with EVM compatibility, in a Twitter post. According to Coin Update, these types of solutions should help bring more users and developers on board.

Analyst bullish on ADA

As “Coincierge” reports, a popular analyst is also still bullish for the Cardano token, despite the unpromising ADA course. The moderator of the YouTube channel Coin Bureau, Guy, dedicated an analysis to Cardano at the beginning of January and explained why the ADA token could soon reach new highs despite the recent weak performance.

In early September, the ADA price on the Kraken crypto exchange reached an all-time high of around $3.10. Since this record high, however, the ADA coin has lost significant value and was recently only quoted at around $1.42 (as of January 16, 2022). It is now 54 percent below its September 2 high. Cardano’s announcements, updates, partnerships and developments over the past few months have not given the price the hoped-for boost.

Do you want to invest in cryptocurrencies? Our guides explain how to do it within 15 minutes:

» Buy Bitcoin, Buy Ripple, Buy IOTA, Buy Litecoin, Buy Ethereum, Buy Monero.

However, according to Guy, this is not a cause for concern as large institutional investors continue to rely on Cardano. “The good news is that there are many institutional funds that are invested in ADA, such as Grayscale’s Digital Large Cap Fund, and it appears that some of these funds have accumulated ADA over the past few months,” according to the coin Bureau moderator. In addition, according to Guy, many other decentralized applications are likely to be launched on Cardano in the next few months and, in his opinion, these should “probably generate the demand that ADA needs to overcome its previous all-time high.”

Also, the coin’s long-term technicals would point to a rise in ADA price up to $4 in the coming months, provided ADA breaks the $1.70 resistance. However, if ADA fails this resistance, Guy says a trend reversal could occur that could plunge ADA to 2020-like price levels. However, the analyst doubts that, since Cardano has many milestones ahead that could easily bring ADA new all-time highs.

Editorial office finanzen.net

This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.

Image Sources: Chinnapong/Shutterstock.com, Morrowind/Shutterstock.com



ttn-28

Bir yanıt yazın