Connect with us

Cardano Investor

ADA Rallies to a Six-Week High as Cardano Pushes for More Growth – Here Is What Is Next

mm

Published

 on

Securities.io is committed to rigorous editorial standards. We may receive compensation when you click on links to products we review. Please view our affiliate disclosure. Trading involves risk which may result in the loss of capital.

The Cardano ecosystem is bursting with several developments in and around the network this week.

The ecosystem welcomed its first-ever metaverse project, Pavia, over the weekend. Around the same time, it also gained a boost following news of the upcoming SundaeSwap mainnet launch.

Further, and working in favor of ADA, Cardano’s development team recently shared the bare bones of its planned improvements primarily affecting scaling and performance optimization.

These developments cumulatively served as impetus thrusting the price of ADA above $1.63 for the first time since the first week of December. Though the token has since retraced, its week-over-week gains sit at around 15% as of writing.

Here is a run-down of these major events and the price action of the token.

Cardano briefly beat Ethereum’s transaction volume

Cardano’s ADA spiked after SundaeSwap dex announced that it was finally launching on the network. The charge presented a U-turn from a period of criticism for the chain. The launch pushed up trading volumes within the ecosystem.

Data provided by analytics platform Messari showed that Cardano’s daily volume hit $7 billion to beat Ethereum’s at some point on Monday. The equivalent volume posted by the latter at the time was about $5.4 billion. ADA climbed to an intraday high of $1.6 in a rebound part of a seven-day uptick, adding to the fact that Cardano’s token had increased by about 50% in value within the previous week.

SundaeSwap, the scalable decentralized exchange, plans to launch on the mainnet tomorrow. It is expected to boost the efficiency of transactions owing to Cardano’s superiority in speed and reasonable fees. SundaeSwap has also planned an Initial Stake Pool Offering (ISO) tomorrow via which users can stake their ADA to official ISO scoopers. Afterward, for five epochs (each lasting five days), delegators would receive token rewards.

Pavia: Meet Cardano’s first metaverse project

The metaverse wave has now arrived on Cardano as communities and institutions shift interests to embrace this future. Pavia launched last Saturday as the initial metaverse project on Cardano. The project issued 100,000 pieces of land on the metaverse, with each of these land parcels minted into Cardano NFTs.

These CNFTs each bear specific coordinates within Pavia.io. More than 60% of the parcels were purchased via pre-sales conducted in November and December last year, and at the moment, there are more than 8,300 landowners in the metaverse. Pavia has a native token meant to serve as an in-game currency.

A quarter of the tokens were airdropped to landholders last month. Data provided by MulieSwap dex shows that the $PAVIA token is trading at 0.1835 ADA at press time. Pavia’s team has committed to developing an in-game experience and invited users to submit their contributions and ideas.

Cardano targets performance optimization and scaling

Cardano recently revealed new plans to scale the network in an upgrade intentioned at pushing ADA to $2. Cardano’s development company, IOHK, announced last Friday that it intends to take the network to the next step by optimizing performance and implementing scaling solutions. The organization’s communications director Tim Harrison told the community the roadmap now leads to developing new projects, revealing that Cardano is currently within reach of 200 projects.

The network is fashioning a positive environment around its plans to scale, with the target of advancing throughput and capacity.

Cardano’s engineering and research team will make changes such as increasing block sizes and pipelining to manage congestion.

These changes will give the network ‘unfettered’ ability to handle high usage as Cardano intends to onboard several thousands of users. Moreover, once launched, Cardano’s Hydra is expected to maximize outturn, significantly cut down on storage needs, and enable little to no expenses.

Cardano (ADA) market performance

Cardano saw an upside break earlier this week on the back of a series of growth-oriented activities serving to advance the network. ADA price steadily surged on Saturday, climbing above $1.50 on Monday.

The uptrend continued throughout the day before eventually peaking above $1.63 and embarking on a descent. The correction has seen ADA/USD dip roughly 10% in the last 24 hours to $1.37, with trading volumes shrinking by over 22% in the same period.

ADA/USD chart. Source: Coinmarketcap

Despite the negative figures, the short-term outlook is leaning bullish for Cardano’s ADA, which has made significant headway. The token is back in the top five largest cryptocurrencies after being dethroned last week.

‘Ideal’ entry points

In a YouTube video shared on Monday, crypto analyst Michaël van de Poppe noted that ADA had been roused from weeks of hibernating. Poppe identified the positive sentiments around Cardano as a driving force. He pointed out that investors looking to get in on the action should watch out for the supports zones where the token will consolidate before catapulting in a fresh rally.

The analyst identified $1.30 as a potential long entry point for traders that didn’t capitalize on the previous opportunities. He, however, warned against ‘chasing the trade’ on 24 hr. time frame.

“We can see that the momentum, or the actual hype around Cardano, is waking up again. So, what should you be looking at if you want to get into Cardano? I think it’s crucial that we have to break through that resistance zone [around $1.31] to have another trigger. So, the first one is looking at a potential long at this zone [$1.31]. The second one is we flip this level [$1.55] and consolidate and get a trigger based there [$1.28]. That is the second entry zone that you could be looking at.”

Van de Poppe also predicted ADA to continue seeing more gains above $2.00 in the mid-term.

“And then we can start targeting a rally all the way towards $2.00 as the next target zone or potentially even towards $2.33 as that is the next target zone for Cardano.”

To learn more about this token visit our Investing in Cardano guide.

Sam is a financial content specialist with a keen interest in the blockchain space. He has worked with several firms and media outlets in the Finance and Cybersecurity fields.

Advertiser Disclosure: Securities.io is committed to rigorous editorial standards to provide our readers with accurate reviews and ratings. We may receive compensation when you click on links to products we reviewed.

ESMA: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Investment advice disclaimer: The information contained on this website is provided for educational purposes, and does not constitute investment advice.

Trading Risk Disclaimer: There is a very high degree of risk involved in trading securities. Trading in any type of financial product including forex, CFDs, stocks, and cryptocurrencies.

This risk is higher with Cryptocurrencies due to markets being decentralized and non-regulated. You should be aware that you may lose a significant portion of your portfolio.

Securities.io is not a registered broker, analyst, or investment advisor.