After soaring nearly three-fold, did you miss the boat if you didn’t buy Cardano (CCC: ADA-USD ) in late July? On one hand, the epic run it went on between the start of the crypto comeback and today probably won’t happen a second time in the short-term.
On the other hand, despite its incredible run over the past month-and-a-half, there still may be gains to be had here.
With its much-anticipated Alonzo smart contract upgrades not yet fully launched, there’s still something in play that could give ADA another spike once said upgrades go live.
Not only that, token prices could pull back in the meantime as traders who got in at lower prices take profit.Buzz around its Alonzo could limit how much it dips between now and then.
Even so, given its more volatile nature compared to Bitcoin (CCC: BTC-USD ) and Ethereum (CCC: ETH-USD ), a double-digit percentage pullback may be possible.
It may take time for it to double or triple again.Yet with a move to $4 per token attainable, consider it still a solid opportunity among cryptocurrencies.
Why Cardano Can Pop Again
Some may see the rebound in Bitcoin prices as what’s behind the rebound in ETH and ADA.
Since July 20, the most valuable crypto by market capitalization has zoomed from just under $30,000 per coin to more than $51,000 per coin.But what’s really helped both altcoins zoom higher has been their respective upgrade catalysts.
If you follow crypto, you’ve likely heard quite a bit about Ethereum’s upgrades.Following the launch of its London Hard Fork , it has put into place enhancements that could enable it to maintain its lead when it comes to DeFi (decentralized finance) transactions.
It could further cement this lead, once it’s done implementing all of its 2.0 improvements.That’s why the price of its cryptocurrency, Ether, has doubled in value in recent weeks.
In the case of Cardano, its pending upgrades could impact ETH’s “DeFi dominant” status because its much-anticipated Alonzo Purple upgrade will give it smart contract capabilities .
Lacking this feature so far has limited its ability to become the “Ethereum killer” that gives that more widely-used platform a run for its money.
Once it levels up its utility and becomes more widely used in transactions chances are its value will continue to climb as well.
Sure, after its 100%+ run-up, the market has already priced in much of the upside from Alonzo.Yet don’t see this as a reason to believe the ship’s sailed when it comes to ADA.
There’s still time to enter a position at a lower price level, ahead of what could be a smaller, but still substantial, second lift-off.
How To Approach ADA
There may be some merit to buying Cardano right now, as it trades slightly below $3 per token, but if you want to get in at and still show profits, you may get your chance.Even as this altcoin has already taken off ahead of the Alonzo upgrades.
As Cointelegraph.com reported on Sept.9, Alonzo is still in the testnet stage .Before it fully launches on the mainnet ( Sept.12 ), this altcoin’s price could experience a pullback.
Traders may decide to take profit.
Sure, with the excitement around its smart contract upgrades and the fact crypto appears back in bull market mode again, it may be wishful thinking it sees a substantial slide within the next week.
If it happens though, pounce on ADA.You may not want to be as aggressive if any dip between now and Sept.12 is modest, but still consider any time it dips between now and then as a worthwhile buying opportunity.
Once Alonzo fully launches, and as crypto traders remain bullish, there may be room for Cardano to hit an even higher price milestone than the one it just hit for the first time.
Just like how Ethereum made a rapid move from $3,000 to $4,000 during the spring’s crypto bubble, a move from $3 to $4 for this altcoin over the next few weeks may be possible.
The Verdict: Buy Any Pullback Ahead of Sept.12
The stars are aligned for ADA.However, don’t take to mean this crypto is any less risky now than it was just a few weeks back.
Risks like possible increased regulation of crypto remain on the table.If stocks experience a correction, this and other major names in this alternative asset class could sell off as well.
It’s still risky, and subsequent near-term gains could be less massive than ones seen by traders who got back into it early.But ahead of the Alonzo mainnet debut, Cardano remains a buy.
InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day.That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators.
When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com ’s writers disclose this fact and warn readers of the risks.
Read More: How to Avoid Popular Cryptocurrency Scams
On the date of publication, Thomas Niel held long positions in Bitcoin and Ethereum.He did not have (either directly or indirectly) any positions in any other securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
Thomas Niel, contributor for InvestorPlace.com , has been writing single-stock analysis for web-based publications since 2016..
