Home » Cardano Seems to Have Weathered the Crypto-carnage Storm Cardano Seems to Have Weathered the Crypto-carnage Storm May 14, 2021 Off By Sydney Ifergan
Cardano (ADA) received a lot of attention after it turned out to be the only altcoin in the top 10 on Coinmarketcap that was bullish when the rest were in free-fall.
Cardano has a year-to-date low of around $0.18 and has steadily gained during this year’s bull market.It peaked at $1.96 on Thursday’s trading session, which means that it has so far rallied by more than 980% from January.Even more interesting about its rally is that it seemed to be defying gravity on Thursday when the rest of the top 10 cryptocurrencies were bearish.
Why Cardano remained bullish in a bearish session
Roughly $300 billion was wiped out of the cryptocurrency market on Thursday.A tweet by Tesla CEO, Elon Musk triggered the massive crypto selloff.
He revealed that his company would no longer accept Bitcoin as payment for vehicle purchases because Bitcoin mining contributes to environmental pollution.The mining process uses electricity-intensive computing hardware, and most of the electricity used in the process comes from fossil fuels.
The Tesla CEO plans to shift his attention towards cryptocurrencies that have a significantly lower environmental cost than Bitcoin.
Ripple’s XRP and Cardano (ADA) seem to fit that bill courtesy of better-optimized transaction networks and less energy-intensive mining.According to Charles Hoskinson, Cardano’s founder, mining ADA costs 6-gigawatt hours of electricity annually while Bitcoin uses an astounding 115.85 terawatts annually.
Although Cardano’s cheaper and more sustainable mining may have contributed to its ability to avoid the bears, there is another potential reason that it reached a new high on Thursday.The Cardano network has an upcoming hard fork called Alonzo, whose implementation will make Cardano more attractive for smart contracts and decentralized applications.The hard fork is also expected to boost ADA’s price.
Technical overview Source- Binance
ADA’s current price of $1.87 crossed back above the 7-day moving average during Thursday’s trading session, thus confirming its strong bullish momentum.Its current 24-hour range is between $1.95 and $1.83, which means that it is currently trading near the 24-hour low.However, the volume indicator shows that there is not a lot of selling pressure.
Source- Binance
The ongoing bullish rally on ADA appears to have started from the $0.92 support level on April 23.If the ongoing pullback from Thursday’s peak price was to continue, Fibonacci retracement suggests that we would likely witness new support around the $1.57 and $1.44 price levels.
As far as the potential upside is concerned, the stochastic RSI indicator is currently near the midpoint at 55.64, which means there is a lot of ceiling room for the price if it were to maintain its bullish momentum.ADA’s current market cap is around $60 billion, and some analysts believe that it could potentially reach a $100 million market cap this year.If that prediction comes true, then Cardano’s bulls will likely continue to charge, potentially pushing the price to new highs.
Fortunately, the latest news, especially about ADA and XRP having mining properties that are more environmentally friendly and the upcoming Cardano hard fork, are enough reasons to boost confidence.Those factors were strong enough to boost Cardano when 95 percent of the crypto market was bearish on Thursday, so they should be enough to maintain the bullish momentum in theory.
Another major benefit to ADA is that its performance on Thursday made it more visible.Many traders will likely put it on their crypto watchlist just because it is one of the very few altcoins that went against the market, seemingly free of Bitcoin’s influence.
Nevertheless, traders should still exercise caution, considering the highly unpredictable nature of the market.Trending.
