Smart contract platform Cardano ($ADA), the eighth-largest cryptocurrency by market cap, has dipped alongside the broader crypto market downturn to the point that it’s up just around 6.5% year-to-date. An analyst, however, has suggested it could see a surge of over 2,000% in the near future.
The price of the flagship cryptocurrency Bitcoin ($BTC) is up more than 58% so far this year, even after an 8% dip over the past week that came after BTC made a new all-time high above the $73,400 mark thanks to growing demand from spot Bitcoin ETFs in the United Stated and to its upcoming halving event.
Popular pseudonymous cryptocurrency analyst Trend Rider has recently suggested on the microblogging platform X (formerly known as Twitter) that the price of Cardano’s native token ADA could soon see a trend shift.
Examining its two-week chart, the analyst said key moving averages are realigning, suggesting a transition from bearish to bullish territory as indicators shift from negative to positive.
According to the analyst, this pattern mirrors a previous instance right before ADA embarked on a significant price surge. Similar bullish momentum could potentially drive ADA past the $1 mark, replicating the April 2021 bull run, during which it rose from $0.133 to its all-time high above $3 within a year—a gain exceeding 2,000%.
If history repeats itself with another 2,000% surge, Cardano’s native token could reach a staggering $12.60, quadrupling its current all-time high. Analyst Trend Rider emphasized the importance of crucial support levels holding firm to maintain the bullish structure, anticipating these levels range between $0.45 and $0.52.
As CryptoGlobe reported, Cardano has been seeing a significant rise in user activity, with the number of active wallet addresses reaching a one-year peak of over 600,000 after surging nearly 40% over that same period.
According to data from Cardano-based decentralized exchange Danogo, the number of active wallet addresses on the network hit a lot of 297,000 back in September 2023, when the price of ADA was trading at $0.24 before a wider cryptocurrency market rally kicked off earlier this year with the approval of spot Bitcoin exchange-traded funds in the United States.
Cardano’s growing number of active addresses comes at a time in which the total value locked (TVL) on its decentralized finance (DeFi) protocols keeps on growing, having surged from around $60 million at the beginning of 2023 to over $417 million at the time of writing.
In ADA terms, the amount locked in these protocols surged, meaning the rise in total value locked didn’t just come from rising asset prices, as 200 million ADA were locked in Cardano’s DeFi ecosystem in early 2023, compared to over 650 million now, according to DeFiLlama.
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