Introduction
In a video released by the Crypto FOMO YouTube channel on 16 October 2023, the host provided an in-depth analysis of Cardano and its native token, ADA. The discussion covered Cardano’s past performance, its current state, and what investors can expect in the upcoming bull market. The host also delved into the technical and fundamental aspects that could influence ADA’s price.
The host began by examining Cardano’s performance in previous bull and bear markets. In its early days, Cardano experienced a significant crash, dropping by about 98.6% from its all-time high. However, it later rallied by approximately 165x, reaching a peak price of $3.13 in September 2021. The host emphasized that Cardano was a much riskier investment back then, lacking smart contracts and a strong community.
The host suggested that a more conservative estimate for Cardano’s next rally could be around 2,750% from its current low. This estimate is based on the host’s belief that Cardano’s next rally will be about six times less significant than its previous one, given its current maturity and reduced risk.
He said:
“So in the previous bull market, if we saw Cardano do from the bottom to the top, we saw it do about 165x … You take that and divide that number by six and that means that you get a much much smaller number, right? So, 165 divided by 6 you get about 27.5 … So that means that from the low to the top, Cardano is going to go 2750% … And if you look at that, you see here that the chart from 23 cents, which is the current low, you go to about 2750, and you get really to a target of around $6.6… So, to make a million dollars, you need to invest only $40,000.“
Current State
According to the host, Cardano has matured significantly since its early days. It now boasts smart contracts, decentralized finance (DeFi), and non-fungible tokens (NFTs). The host pointed out that Cardano’s recent bear market saw a less severe drop of about 92.6% from its high, indicating that it has become a less risky investment.
Price Predictions
The host suggested that a more conservative estimate for Cardano’s next rally could be around 27.5x from its current low, which would place its price at approximately $6.60. This estimate is based on the host’s belief that Cardano’s next rally will be about six times less significant than its previous one, given its current maturity and reduced risk.
Technical Analysis
On the technical side, the host noted that Cardano is showing signs of breaking out from its current levels. He identified three key indicators to watch: the 20-day moving average, a support level of around 26 cents, and a higher high above the current local high of 27 cents. These indicators could confirm that Cardano is on the right track to continue higher.
Fundamental Analysis
From a fundamental perspective, the host highlighted several developments that make Cardano a strong contender in the crypto space. These include the launch of Alonzo and smart contracts, a booming total value locked (TVL) in DeFi, and various NFT projects. The host also mentioned that Cardano’s ecosystem is thriving, with several projects under development.
Total Value Locked (TVL) in Cardano’s DeFi
The host highlighted the rapid growth of Cardano’s Total Value Locked (TVL) in decentralized finance (DeFi) as a positive indicator of its potential. According to him, Cardano’s TVL in DeFi currently stands at $157 million and has been on an upward trajectory. This growing TVL is a testament to Cardano’s increasing importance in the DeFi space and serves as an indicator of the platform’s health and adoption rate. The host expects this figure to continue to grow, further solidifying Cardano’s position as a leading smart contract platform.
External Factors
The host also touched on the influence of Bitcoin’s performance on Cardano. He noted that Bitcoin is currently under resistance and needs to break above the 200-day moving average for a more bullish outlook. This could potentially impact Cardano’s performance as well.
Final Thoughts
The host concluded by reiterating his bullish outlook for Cardano, stating that both technical and fundamental factors align well for its future growth. He expressed excitement about covering Cardano’s journey in upcoming videos.
Featured Image via Unsplash
