The recent spike in Cardano’s ADA coin, fueled by the arrival of institutional investors, has created hope for another bull run. The past three weeks witnessed a 217.50% surge, increasing the number of hodlers to 586K. Nearly 48K wallets bought the coin within the past month.
The resurgence in ADA’s performance is a result of various reasons, including the announcement of new Cardano-backed solutions and the flow of investment into the entire crypto market. However, the coin is still 65.77% down from its all-time high of $3.10.
What are the Reasons for Cardano’s Surge?
Major events like the entire crypto market’s boom and the candidates with pro-bitcoin stand winning elections had influenced the price of ADA. Apart from that. Here are some core reasons for the upward movement:
- The Recent Developments: The ability of the Cardano Foundation to bring cutting-edge developments even after 7 years of its release is appreciable. Midnight Protocol, a privacy-focused infrastructure from the Cardano ecosystem, is a recent release that attracted millions of users.
- Major Partnerships: The speculation about an XRP-ADA partnership, which stemmed from the interactions between the founders of both ecosystems, is another reason that increased the hodlers. Charles Hoskinson, the founder of Cardano, and David Schwartz, the founder of Ripple, recently interacted regarding the future developments of blockchain, citing a partnership.
- Institutional Backing: October and November month’s on-chain transactional data shows that various whales have accumulated the coin through multiple purchases. Interestingly, a radical increase in the buying volume was witnessed just after the U.S. elections. The accumulation of new whales ranges from 1 million to 10 million dollars. These huge volume in purchases confirms institutional backing.
Cardano ADA: Insights From the Charts
After attaining the milestone of $3 per coin around September 2021, Cardano started bleeding. It didn’t stop for 3 years until late 2023. However, the coin failed to rise as expected, reaching the downward level of $0.32, a tenfold decrease from its ATH.
DA gained momentum after the elections, mainly because of Donald Trump’s victory. The Relative Strength Index (RSI) and Moving Averages convergence/divergence (MACD) level suggest a strong buy. However, various expert analysts believe that the asset is overbought, and will show a recession soon.
Cardano ADA Price Forecasts From Experts
According to Ali Martinez, a crypto trader and influencer with 87.3K followers in X, investors will shift from to ADA soon, He hypothesizes that the the uptrend in ADA and slow movements in ETH indicate a migration from Ethereum to Ripple. However, no official confirmation or evidence is there to back this.
Martinez also notes that ADA is a better coin than 90% of the cryptocurrencies in the market for long-term hodling. He predicts that a recession to $0.60 is possible before it starts the bullish behavior.
According to crypto analyst Sssebi, ADA has the potential to change the lives of investors, predicting $2.5 per coin in this bull run. Another analyst Todayimcraziest poses a $4 minimum target for ADA. According to chart expert Crypto Jaibrah, ADA is less likely to cross $1.35.
Where to Purchase ADA Tokens?
As one of the most popular coins out there, prominent exchanges like Binance, Bybit, Coinbase Exchange, OKX, Upbit, Bitget, Kraken, KuCoin, Gate.io, and various other exchanges have listed ADA tokens. The decentralized exchanges that facilitate ADA’s training include Minswap, Pancaskeswap, and VyFinance.
Final Thoughts: What’s Next for Cardano ADA?
Concerning the altcoin bull run, ADA is the coin that is ignored by many mainstream traders who depend upon the popular media to pick the coins. Despite its prominence as a useful crypto, ADA is truly underrated when it comes to trading.
The recent events surrounding the Cardano Foundation strongly suggest an uptrend. However, do your research before purchasing ADA and get a better understanding of the coin.