ADA is the native currency of the blockchain Cardano. It has recently seen a spike in its price. We discuss whether this may continue and push it past the $100 barrier.
Around one month ago, ADA was falling in price. Yet a recent turnaround has seen Cardano’s ADA become one of the best gains of the past week. This has been exacerbated by several factors. Macro-economic outlooks are tending to be brighter. A possible relaxation of tariffs for several countries, along with the possibility of interest rate cuts from the Federal Reserve, has helped. Furthermore, a trade deal with the United Kingdom was also announced, buoying confidence in the riskier asset markets. But what else does ADA need to keep it rising?
ADA Current Market Levels
This week, ADA made a leap of 4% over 24 hours. It then crept up to a high of $74 before making a retreat. This has been a key resistance point in the past for the coin. It has been testing this level for some time, with a build-up that has been seen before major surges in the past. If it breaks this barrier, it could see the ADA USD price reach as high as $90 and further.
Only beating its gains this week was DOGE, which added 5%. Other coins gained between 2% to 5%. This has also been seen in Bitcoin, which is gradually pulling its way back up to the $100,000 mark.
While others are taking these as positive signs, there are those who are warning of imminent stagflation. This is not good for a healthy economy, and is where unemployment, inflation, and stagnation occur at the same time. This is very bad for risky assets like cryptocurrency.
Positive Signs for Cardano
What is noticeable is the amount of attention being paid to Cardano in crypto circles. This is mainly due to the trending topic of Cardano NFTs, which have brought many over to a criminally underused blockchain.
Further amping this excitement up is the accumulation of Cardano by whales. Around 410 million coins were purchased by whales in April. This is a huge sign of confidence in the currency. Usually, this happens before a shift in public perception or a huge price change. This is also happening near a key resistance level, which, if broken, could see their confidence in it pay off.
Cardano is an L1 blockchain and is in a saturated marketplace. Yet compared to others, it has held tight. While there has been volatility elsewhere, this has quietly sat in the background, building up its status.
In fact, this slow and steady approach is befitting of the blockchain’s ethos. It is often criticized for not moving fast enough, something that has been a hindrance in the past. For example, it did not introduce Smart contract functionality until long after launch. However, this slow and steady approach now seems to be paying off.
Cardano Update Imminent
Another factor pushing up the price is an imminent upgrade. Known as the Ouroboros Leios upgrade, it will improve scalability, speed, and security. Solana is the current preferred blockchain for many, as Ethereum has stagnated. Cardano, as a relative newcomer, was once hotly tipped but has tailed off. Should it be able to improve its speed and reduce its gas fees, it could be better than Solana and manage to flip its popularity.
Currently, Cardano runs at a much slower pace than Solana, especially when it comes to processing transactions. It can do 20 per second, peaking at 40 TPS, compared to Solanas’ 65,000 TPS. It is believed the upgrade will push its speed to 10,000 TPS. While this is still a lot less, it is only one part of the network’s roadmap. There are other upgrades in the pipeline to push it even further.
Plans are also apace for more user involvement in the network. This will see decisions on the network handed over to users. This is another signal that Cardano is looking to attract more activity, and thus more investors.
Is a Major Rebound Coming?
There are also indicators that a major rebound is imminent. This comes from trading in ADA futures contracts. Around $611.47 million at the current market value of ADA has been committed to Open Interest. This has been echoed in other cryptocurrencies. Many will be hoping this is a signal that it can break the $1 it held before March.
Also notable is that it has managed to form a higher low. This is always a sign of bullish sentiment toward the coin and a good indicator of long-term success. As it is currently around the $0.75 level, an uptick from here could see a large swing.
Cardano looks to have a promising future. Yet this is the realm of crypto, where volatility is inherent. In a saturated marketplace, it needs to attract users or forever be lost. With the right upgrades and a shift in market sentiment, it could be the breakout currency of 2025 and beat the $100 mark.
