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After further investigation, it is clear that this pump began two weeks ago, following one of the largest corrections in Bitcoin’s price, a decline of nearly 20% from $57,539 to $45,137.
In fact, following the aforementioned depreciation of Bitcoin’s valuation, the bulk of the market’s top-100 altcoins endured a bloodbath. This is where ADA becomes an outlier, with the alt quickly reaching a new ATH of $1.48.
At the time of publication, the cryptocurrency’s price was just under 10% off its all-time peak attributable to a surge of corrections. If the bull rally persists, many expect ADA to hike again, scale a new ATH, and resume its price exploration. But, what makes those predictions credible? Since ADA’s recent gains have been driven by improved market activity and sustained demand.
Furthermore, Cardano is followed in the footsteps of Ethereum in several ways, with the project also known with its dev ecosystem and over 100 peer-reviewed articles from companies commissioned by the Cardano Foundation.
In the Goguen Age, we are almost halfway through Cardano’s roadmap. It is remarkable for an altcoin with a comparatively high market capitalisation like ADA to have gained 595 percent YTD at this stage in its journey. Prior to the recent corrections, its 17 percent price gain over a 24-hour span appeared to be sustainable with the current bullish sentiment among retail traders, especially those on Binance, as the ADA/USDT and ADA/BTC markets on Binance have been major contributors to the altcoin’s trading volume at levels above $1.
Furthermore, beginning on March 16, 2021, Coinbase Pro will allow Cardano inbound transactions, which will contribute to the asset’s liquidity. Although the increased liquidity could have a negative effect on Cardano’s price (as seen at press time), contrarians are still purchasing Cardano in anticipation of a breakout and further price discovery. Cardano’s market surge is expected to continue as investment flows on spot markets and the number of successful retail traders grows.
It’s interesting to notice that there are experts on Crypto-Twitter who agree that buying Cardano at $1 is a smarter and safer investment than buying it at $0.10. In line with this, if Cardano’s price rally continues, it will be a better investment at $10 than at $1.