The intriguing journey of Cardano (ADA), the fuel for the decentralized layer-1 blockchain protocol, takes a new turn. As of Monday, ADA, once trailing multi-month lows, has been cautiously ascending, last seen trading just above a rather optimistic $0.25 per token. Even though we’ve seen a 6% uptick compared to Monday’s figures, it’s worth noting that Cardano still drags a near 2% loss for the month and a 30% drop since its July highs.
One cannot disregard the multifaceted nature of ADA’s trajectory. On one ironclad hand, the re-routed momentum offers an exciting snippet, pulling ADA’s market cap ahead of Dogecoin’s (DOGE), hoisting the once understated crypto to the seventh-largest by market cap. Despite the optimistic move, the other hand gleefully notes the persistent bearish mid-term trend that forbids celebration.
The optimists argue that ADA could potentially breach the resistance mark at $0.26 and finally catch the bullish wind. In that event, ADA could test a 50DMA at $0.275 and face resistance-turned-support at $0.28 and $0.30. However, the lingering doubt of the U.S SEC’s attempts to label ADA an unregistered security casts a shadow of uncertainty on its U.S adoption, potentially hindering this promising surge.
Yet, it wouldn’t be fair to dismiss ADA’s potential for long-term profitability. Even if ADA currently struggles to draw in significant crypto capital with its trade value locked (TVL) standing under a rather modest $200 million as per DeFi Llama, which is quite underwhelming compared to its counterparts, the ADA ecosystem incessantly continues to develop.
Given the volatility of the cryptocurrency market, a substantial rally could see ADA regaining its former glory with yearly highs touching the $0.40s, contingent on Bitcoin clawing its way back to the $30,000s. However, the odds of ADA hitting a landmark $10 this year seem significantly small.
Looking ahead, Cardano’s ecosystem must showcase considerably more development and adoption for justifying the gigantic price tag, which is suggestive of a $350 billion market cap.
As the unpredictability of the cryptocurrency market is well-established, savvy investors are currently eyeing an alternative option in the form of a new coin. This coin is being launched by Wall Street Memes, a heavyweight player with over 1 million followers. The presale of the new token, $WSM, has already garnered over $25 million, and with its presale ending in less than 14 days, investors are scurrying to get a piece of this promising offer.
While the journey of ADA continues to unwind in its complex web of upswings and declines, the market waits with bated breath to perceive where it heads next. Whether ADA’s stars align for a bullish trajectory or not, one thing is certain – the world of cryptocurrency never fails to surprise.
Disclaimer: Cryptocurrency is a high-risk asset class. This write-up is purely informational and does not serve as an investment advice. Please tread carefully as you could lose all of your capital.
Source: Cryptonews
