- Cardano’s ADA token could potentially surge to $40, according to a technical analysis by Fiery Trading, driven by increasing network adoption and a favorable return ratio.
- Despite current market volatility, the rising use of Cardano’s ecosystem and liquidation of short positions might support this bullish forecast.
The cryptocurrency world is buzzing about Cardano’s native token, ADA. According to a technical analysis by Fiery Trading on TradingView, ADA could soar to $40 or more if it continues trading within its current channel. With the next bull cycle on the horizon, this bullish forecast hints at an explosive all-time high for ADA.
Cardano’s Bullish Predictions and High Return Potential
Fiery Trading’s analysis emphasizes the potential for significant returns, despite acknowledging that this outcome is not guaranteed. The analyst highlighted that the anticipated return ratio makes this scenario “worth the risk.” Investors are encouraged to consider ADA as a valuable addition to their portfolios, with current levels potentially representing the best entry point for ADA in the foreseeable future.
Interestingly, there has been an increase in short positions against both ADA and XRP, the native coin of the XRP Ledger. For long-term investors, this could be a positive sign. The liquidation of short positions often contributes to price increases, suggesting that ADA and XRP might benefit from this trend.
On-chain analytics firm Santiment reported that funding rates on Binance have shown a dominance of short positions over long ones since September 2023 for ADA and May 2024 for XRP. This data underscores the growing bearish sentiment among short sellers, which might eventually fuel a bullish reversal.
Current Market Performance
As of now, ADA is valued at approximately $0.3916, marking a 0.86% increase in the last 24 hours, according to CoinMarketCap. However, over the past week, the token has experienced a 0.46% decline, reflecting the current volatility and uncertainty in the market.
Despite this mixed performance, the adoption of Cardano’s network continues to rise. CNF recently reported that the Sundae v3 protocol from Cardano handled around 9,264 orders in a single day, showcasing a significant increase in usage. This growing activity within Cardano’s ecosystem supports the optimistic outlook for ADA’s future.
The increasing adoption and usage of Cardano’s network, coupled with the technical analysis suggesting a potential surge, paint a promising picture for ADA. While the market remains unpredictable, the potential for high returns makes ADA an attractive option for investors willing to take the risk. As the next bull cycle approaches, ADA’s performance will be closely watched by the crypto community, eager to see if it can achieve the anticipated $40 mark.