Cardano consolidation phase to end with explosive 100% price move

  • Historically Cardano’s consolidation phases have lasted from 4 to 8 weeks and ended in a 100 to 160% rally in ADA price. 
  • Majority of Cardano is held by retail traders, making it more decentralized than most other altcoins. 
  • Cardano lost its position as the fifth-largest cryptocurrency by market capitalization to Solana, dropping out of the top 5. 
  • Analysts expect ADA’s rising adoption and utility to fuel the altcoin’s recovery from the consolidation phase. 

Analysts expect Cardano to recover from the drop in price as the consolidation phase in ADA price trend comes to an end. Historically, ADA price has posted a massive rally at the end of most consolidation phases. 

Cardano price on track for 100% price rally

Cardano price has dropped consistently over the past two weeks. Solana, Cardano’s key competitor, flipped ADA in market capitalization. Cardano has now dropped out of the top five cryptocurrencies by market cap. 

Despite news of Cardano’s recent partnerships and a rise in the number of projects building in the ADA ecosystem, the altcoin’s price has plummeted. Analysts have noted that this is a trend, and nearly each time, the Ethereum-killer has posted 100% to 160%. ADA price target could be $4-$5 based on the historical trend in the ongoing rally. 

@cryptobadger, a cryptocurrency analyst, believes that, 

…long consolidation phases are in fact very typical for ADA. As you can see on the chart below, we had similar patterns around November-December 2020, again in January 2021 and then from late February to late April. Each of these consolidation phases was between 4 and 8 weeks longs.

Since the successful implementation of the Alonzo hard fork, Cardano has powered projects in decentralized finance. Top projects SundaeSwap (decentralized exchange), DeFi protocol Meld and browser extensions for decentralized applications, like Yoroi, have fueled ADA’s adoption and rising on-chain activity. 

Souce: FX Street

Should you buy ADA in August 2021?

On August 1, the founder of Cardano, Charles Hoskinson, updated the community on updates regarding the blockchain. He claimed that things are on schedule and that things are moving along nicely in regards to the Alonzo hard fork. This is a showcase that the blockchain is constantly being improved upon, and with the media attention, the ADA Tokens are bound to see an increase, especially given the increase in the circulating supply we’ll end up seeing after the hard fork.

EMURGO, which is a founding Cardano (ADA) entity, announced that it will launch a new platform intended to bridge the interaction between ADA users and decentralized applications (dApps) on the blockchain network. This will be done through the rollout of the Yorodi dApp connector, which will essentially get ADA holders access to decentralized applications on the Cardano blockchain directly from their browsers through a plugin. Through this plugin we can expect a much higher level of Cardano activity in terms of the circulating supply.

Should you buy Cardano (ADA)?

On August 1, Cardano (ADA) had a value of $1.31.

It experienced its all-time high value of $2.45 on May 16 of 2020, which gives us a perspective of how high the token has risen in value historically. When we compare it to its value on August 1, there is a 46% difference.

However, to get a clearer perspective of its recent hikes and drops in value, we will be analyzing its performance in July.

On July 4, it got up to $1.49, making it one of its highest recent points. On July 20, it dropped to $1.02, which gives us a perspective as to how low it has gone. Comparing July’s high with the all-time high, there is a 39% drop in value, or in other words, that much potential for the token to regain its value.

According to data from IntoTheBlock, Cardano (ADA) has experienced $16.41 billion in transactions greater than $100.000 in the last 7 days. 

Furthermore, we can see an 8% increase in the trading volume of ADA tokens within the last 24 hours, which signals a heightened activity of the blockchain.

This being the case, at $1.31, ADA might be a worthwhile purchase as we can expect its value to rise by 40% after the hard fork rolls out, which would result in a value of $1.83 within the span of the month.

Source: Various