Cardano Price Forecast as Crypto Capital Venture Founder Says ADA Probably Not a Security – ADA to the Moon?
ADA, the ticker for cryptocurrency Cardano, the token that powers the smart contract-enabled Cardano blockchain, saw a modest pullback on Thursday in the wake of a fierce two-day rally. Since Monday’s lows below $0.35, Cardano has seen an impressive rally of nearly 18%, with ADA/USD last changing hands just above $0.4050. That’s just over 3.0% below previous session highs in the $0.42s, with ADA weighing in modestly as short-term bullish speculators take profits.
ADA’s latest rally, which saw it reach its highest levels since early November, comes in tandem with a face-smashing rally seen across the cryptocurrency space – Bitcoin surged nearly 10% on Wednesday to hit its highest level in months above $24,500 and Ethereum is exploring multi-week highs in the $1700 area again. Analysts have put the rally down to a squeeze on short positions. That could certainly be a factor lifting Cardano.
According to crypto derivatives website coinglass.com, short position liquidations have risen to one-month highs in recent days. Over the past two days, over $3.75 million in short positions have been sharply closed by exchanges, the most of the 13th of January. The latest move higher marks a meaningful break north of Cardano’s 200-day moving average, with ADA now up around 65% on the year.
The list of bullish tailwinds is growing
ADA’s rally is not just fueled by short-squeeze-driven upside and broader crypto market tailwinds. It is also driven by a mix of positive recent headlines/developments related to the health and growth of the Cardano ecosystem itself.
Most recently, Cardano attorney and founder of Crypto Capital Venture Dan Gambardello said he believes the US Securities and Exchange Commission is unlikely to consider the cryptocurrency a security. He gave two reasons for this task; 1) Cardano’s ICO took place in Japan and was not available to US investors and 2) that a judge recently ruled that secondary sales of LBRY’s LBC token are not securities, setting an important precedent for the ADA.
Elsewhere, Cardano recently underwent a major upgrade dubbed the “Valentine Upgrade”, while trade value locked (TVL) in smart contracts on the Cardano network continues to rise in the wake of Cardano’s recent launch of the over-collateralized algorithmic stablecoin Djed (DJED), which offers investors new avenues to generate returns within the Cardano Decentralized Finance (DeFi) ecosystem.
Analysis from crypto analytics firm Santiment also suggests that there has been a massive increase in whale transactions in recent weeks – increased network activity is normally interpreted as a bullish sign for a cryptocurrency.
Price Prediction – 50% Rise Incoming?
Now that Cardano has launched back north of its 21 and 200DMAs in the $0.38s and back above $0.40, the cryptocurrency is in the midst of pushing through a key long-term resistance area ($0.39-$0.44 zone). If ADA can muster a meaningful upside break in this zone, especially the late October/early November highs in the $0.44s, then the door is open for a quick rally above $0.50 and towards the summer 2022 highs near $0.65.
Some analysts have identified that Cardano has recently formed an inverse head and shoulders pattern, which many are interpreting as a bullish sign.
Buy ADA now
ADA options to consider
As discussed above, ADA’s short-term outlook looks pretty good. However, traders should still always be looking to diversify and may want to consider other tokens with high potential, such as those sold in pre-sales promising upcoming crypto projects. We’ve reviewed some of the top contenders in this list of the top 15 cryptocurrencies for 2023, as analyzed by CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section contains insights from crypto industry players and is not part of the editorial content of Cryptonews.com.
