Cardano (ADA) traded at $0.2055 today, as mild gains allowed the altcoin to stay above several key moving averages. The price rebounded from the lower edge of the Bollinger Band at $0.196, leading to an expansion in these mathematically-defined price envelopes and signaling potential volatility ahead.
Cardano’s price structure and bullish scenario
On the broader timeframe, market analyst Javon Marks suggested that Cardano’s weekly chart indicates room for a major rally, potentially echoing a 1,100% rise. Marks stated that this kind of price move could propel ADA to $2.90, if market conditions for altcoins mirror previous historical structures.
In 2020, Cardano saw a similar technical pattern, creating four consecutive lower lows on its monthly chart before launching into an uptrend that ultimately hit an all time high of $3.10 on September 2, 2021. At present, ADA’s value remains 93% below that level, reflecting the significant correction the token has undergone since its peak.
Previously, Cardano’s price demonstrated a similar structure in 2020, recording several lower lows on monthly charts before accelerating to the $3.10 all time high, now standing 93% above current levels.
Mini dictionary: Javon Marks is a cryptocurrency market analyst known for technical analysis and high-profile predictions within the digital asset sector.
Tokenized copper proposal raises new hurdles
A new community treasury proposal is currently circulating in the Cardano ecosystem, requesting approval for a $5 million investment in tokenized copper. The referenced proposal would require ADA to achieve a fresh all time high, surpassing $3.10 and driving Cardano’s total market capitalization above $21 billion, to fund the purchase of physical copper assets.
Toto Finance, the protocol behind the proposal, outlined plans to allocate 22 million ADA to acquire COMEX Grade 1 copper cathodes. The rest of the funds, roughly one third, would go toward storage, insurance, auditing, technology development, and related operation costs.
Given Cardano’s market structure and demand-driven growth, some community members have voiced skepticism. Approval for the proposal might be challenging, as the network typically relies on organic demand rather than speculative investments tied to price assumptions.
| Proposal | ADA Required | Purpose |
|---|---|---|
| Toto Finance | 22 million ADA | Purchase of COMEX copper |
| Operational Expenses | Approximately one third of total | Storage, insurance, auditing, technology, administration |
Toto Finance’s founder Monty Metzger suggested that if copper appreciates annually by 30%, the investment could return approximately 69% over two years. However, such a scenario remains hypothetical, as commodity prices are subject to market changes.
Monty Metzger emphasized that a bullish outcome in copper could lead to significant growth, though there is no guarantee this will materialize due to market risks.
The tokenized copper would be stored in a regulated warehouse near New Orleans, with each pound of verified copper represented by a digital token, CuTT.
Mini dictionary: Toto Finance is a decentralized finance project focused on tokenizing real-world assets, such as copper, to provide digital exposure via blockchain-based tokens.
Network activity and community response
Current data indicate that active addresses on the Cardano network have dropped to 13,973, a decline of nearly 50% since reaching 27,400 on October 8. This decrease in on-chain activity further complicates the network’s prospects for expanding utility and growing treasury proposals.
The proposal appears unlikely to pass in its current form, as many ADA holders remain unconvinced that a large-scale copper purchase aligns with Cardano’s long-term goals. Advocacy to reject the treasury plan has also increased visibility on social media platforms, with some users urging the community to vote against it.
