Cardano’s currency, ADA, broke the $3 range for the first time in the coin’s history before dropping to $2.34 as of this writing. While sceptics will point out that BTC and other major crypto players artificially inflated the Cardano price, the reality is that this has been coming for a long time.
YTD, Cardano has risen by 1600%. That makes the ADA one of the best cryptocurrencies performers in 2021.
That’s something that cannot be argued or debated. ADA’s success is what saw the crypto token overcome the $3 resistance band for the first time in its history and will send the currency back to that range soon. However, not everyone seems to agree.
Opponents of ADA
Those who stand against the idea of ADA climbing above current values will point out previous trends. And historically, they are correct.
Every time ADA has reached a new bottom or height, it will drop or rise by the same amount. Therefore, one could argue that Cardano’s price is within Fibonacci retracement levels.
That is a sentiment expressed by Kiana Danial, CEO at Invest Diva. Speaking to Forbes, Danial stated her distrust for ADA sustaining its growth and remaining at a level above its current one.
As explained by the CEO, “based on the history of ADA/USD’s price action, we could expect it to at least reach $3.24 within its current uptrend. [However], this pattern has repeated itself several times in the past. We expect more or less the same drop by the same distance from the bottom. While history doesn’t exactly repeat itself, it often rhymes.”
And she isn’t alone in this idea. Several other prominent investors don’t recommend their investors to jump into ADA yet. Despite this, ADA trading volume on Indian crypto exchange WazirX is rising, indicating Cardano’s popularity among investors is increasing.
They see the token’s growth as a temporary effect without any long-term benefits. But no everyone feels that way.
Proponents of ADA
Willian Noble, Chief Technical Analyst of Token Metrics, vehemently disagrees with those claiming ADA will remain at its current value.
As he stated to Forbes, “our target for Cardano is $3.50.” The technical analyst went on to express that Cardano’s price is not bound to the Bitcoin price.
That means that whenever BTC suffers significant shifts, ADA owners don’t have to worry about Cardano’s market valuation.
Moreover, as Mr Noble points out, “all of finance, art, music, and social media will wind up on the blockchain. Cardano’s blockchain technology is wicked fast.”
That opinion is further cemented by Jake Wujastyk, Chief Market Analyst at TrendSpider. Wujastyk sees Cardano as a fast-growing currency as long as its support level remains at $2.86.
Additionally, Wujastyk is looking forward to testing ADA’s capabilities. “If this level is broken [$3] to the upside, traders should watch for a test of the $3.28-$3.30 level above which is the 1.618 Fibonacci extension of the August 22nd to August 25th measured move.”
What that means is quite simple. If Cardano’s price goes above the $3 mark and starts a bullish run, it will be the $3.28-$3.30 range that will determine its ability to remain above previous levels and keep its bullish run.
Looking ahead at Cardano’s ADA price
It’s hard to tell the future of cryptocurrencies because of their volatility and low barriers to entry. Nevertheless, Cardano’s ADA should be on everyone’s list as a buy at the moment.
From its YTD performance to its current bull run, there are no signs that suggest Cardano’s price is on the downswing.
ADA’s rise may not be meteoric, but it has been stable. And that is precisely the type of coin investors must target. It guarantees a steady return and a haven for an ever-changing crypto market.