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Following the volatility in the leading cryptocurrency Bitcoin (BTC), attention has turned to altcoins. According to senior crypto analyst Ali Martinez, the popular altcoin Cardano (ADA) is showing signals similar to its performance during the 2021 bull market.
Cardano’s $10 Target!
The analyst indicated that the rally raising expectations for the cryptocurrency won’t be easy, suggesting that ADA could face a correction before soaring to $10. In December 2021, ADA’s price was at $0.15. However, 10 months later, the price increased, and as of September 2021, it was trading at the $3 level. This year, the token appears determined to recover from its weak performance in 2023, which has been challenging due to Bitcoin‘s (BTC) rising trend.
In the last 30 days, ADA’s price has risen by 53.28%, trading at $0.77. However, before this significant jump, the token had already been signaling that it could perform better. One of Cardano’s strengths is its development activity, which serves as a consistent metric for growth. According to on-chain data, ADA’s social dominance dropped to 0.30%. Social Dominance measures the discussion rate of a crypto project compared to other projects in the top 100.
ADA’s On-Chain Data
Therefore, the decline in social dominance could mean that investors are shifting their focus away from ADA. However, a decrease in social dominance could be seen as a positive in terms of price movement. This is because extremely high social dominance often indicates a local peak. Hence, ADA’s price may have the potential to rise. Additionally, experts suggest that signals from the Fibonacci extension indicate ADA’s price could climb to $1.40 in the near term. Data related to the Money Flow Index (MFI) also shows an increase.
A high MFI reading indicates a significant influx of capital into ADA. A reading of 80.25 suggests that ADA is in overbought territory. If ADA corrects, the price could fall to $0.65. The price movement could also signal a return of confidence in the ecosystem, as indicated by Cardano’s Total Value Locked (TVL). At the time of writing, TVL had risen to $495.14 million, which could indicate that market players are locking more tokens into the protocol.
