In a compelling update, a widely-followed cryptocurrency analyst has recently suggested that Cardano ($ADA), a popular competitor to smart contract platform Ethereum ($ETH), could soon see a significant upward surge.
In a video shared on the Google-owned video-sharing website YouTube with his over 2.3 million subscribers, analyst Guy Turner noted that ADA is showing bullish pattern signs on its weekly chart, which could lead to a dramatic increase in its value, potentially reaching $1—a major resistance level.
He explains that the fluctuating fortunes of ADA since October are linked to its correlation with small-cap stocks and the rapid changes in long-term interest rates. Since these long-term interest rates have recently decreased, ADA’s price has nearly tripled.
An interesting point Turner notes is the bullish signal from the total value locked in Cardano’s decentralized finance (DeFi) protocols, indicating rising demand after surpassing $400 million in TVL last month.
He cautions, however, that there are short-term bearish trends looming over the ongoing bearish sell pressure for ADA. Per his words, this selling pressure may be coming from Emurgo, Input Output Global, and the Cardano Foundation as they sell to fund their operations.
Despite this short-term pressure, Turner believes these developments are positive for ADA’s long-term growth. Cardano, as reported, has seen data from on-chain analytics firm Santiment show it has maintained its top stop in cryptocurrency development activity after surpassing the “blockchain of blockchains” Polkadot ($DOT) and its public pre-production environment Kusama ($KSM).
Last year has seen an exponential growth in the Cardano network, as evidenced by IOG’s development reports. The report highlighted the launch of 152 projects with an additional 1,307 in the development phase on the network. The Cardano platform has processed 79.7 million transactions, indicating a rise in its adoption and usage.
In terms of token metrics, the report disclosed that there are 9.1 million native tokens in circulation within the ecosystem, regulated by 81,621 token policies. Furthermore, the implementation of Plutus scripts, a toolkit for smart contract development, has achieved 6,260 deployments for version 1 and 4,981 for version 2. This underscores Cardano’s consistent advancement in the deployment and execution of smart contracts.
Featured image via Unsplash.
