cardano price pumps

The Cardano price pumped 54% in 2 days. We take a look at what’s behind the rally and where to buy Cardano.

Cryptoassets are a highly volatile unregulated investment product.

Why is Cardano Pumping?

There’s a reason that Cardano (ADA) is the sixth biggest coin with a market capitalization of more than $20 billion. Its growing use case has resulted in a recent ADA pump. The Cardano network, home to the ADA token, experienced a significant spike in users. Users have minted more than 5 million NFTs on the Cardano network. That’s increased the issuance of ADA. That’s not a surprise since many people buy NFTs.

Another reason for the ADA rally is speculation about the impending Vasil hard fork. A hard fork is a software upgrade to the network. Cardano’s next hard fork, Vasil, is the network’s second significant upgrade to ensure stability and connectivity.

The Vasil hard fork is due on 29 June 2022, and it should boost the scalability capabilities of Cardano’s network and its smart contracts, Plutus. Once completed, Cardano’s fork will provide higher throughput to the network and an upgraded range of decentralized exchange (DEX), decentralized finance (DeFi) and smart contracts.

Cardano Technical Analysis

Cardano’s impending hard fork and increased issuance of ADA resulted in a price pump of 54% in 2 days. The price had ranged for several days around $0.45, but the pump pushed the price up to $0.68, where it encountered resistance.

We saw the ADA price fail to break through that resistance on 10 May, then watched it drop to $0.39. Currently, the price has retraced to $0.60, but investors shouldn’t be surprised to see ADA rise to the resistance at the $0.68 region again. If it breaks through it, ADA should encounter the next resistance at $0.77. Rising to that price means Cardano will spike another 26% from the current price.

Those price moves pale in comparison to what ADA’s rally was in 2021. ADA investors who bought the coin in November 2020 watched it pump more than 3,000% by the end of August 2021 to reach an all-time high (ATH) of $3.09.

cardano rally

The Relative Strength Index (RSI), a trader’s tool for determining the magnitude of a coin’s price move, showed that it dropped to around 33. That number reveals ADA’s bottom may be in.

What is Cardano?

Cardano is a proof-of-stake platform, founded on peer-reviewed research and combines technologies to provide security and sustainability to decentralized applications, societies and systems. The platform aims to redistribute power from accountable structures to individuals.

The platform enables users to build smart contracts and create decentralized applications and protocols. It’s also used for sending and receiving funds via its native coin, ADA. Investors can buy ADA on all major exchanges. One of them is eToro.

Cryptoassets are a highly volatile unregulated investment product.

Related

Crypto Signals - Learn to Trade

Our Rating

Cryptosignals.org
  • Free Telegram Community & VIP Channel
  • 3 - 5 Crypto Signals Daily
  • VIP Access when Opening an Exchange Account
  • Market News & Technical Analysis - cryptosignals.org
Cryptosignals.org
Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.