Cardano (ADA) begins to have a bullish trend to have a spike in market cap and take fourth place. Its market cap has continued to rise, threatening to take over crypto giant Binance Coin (BNB).
Brief Analysis
Over the past year, ADA has had the usual trend of popular altcoins. It has begun with a steady trend at the beginning, going through a bumpy road. After some number of months, ADA beginning to rise. It goes over a small fluctuating period at this scale before rocketing up midway through February, almost tripling in price, going from about 0.35 USD to about 0.95 USD. ADA then drops for a bit, now beginning repeating patterns of rises and falls over the next few months. This pattern overall stays stable, although there is a slight net gain over time. Towards the end of April, ADA experienced a decent fall. However, at the start of May, ADA quickly recovered, created resistance for some time, then went even higher. Another resistance was formed around 1.60 USD, now spiking upwards to have the current bullish trend.
Zooming into the 1-month range, ADA's rise becomes more dispersed, making it appear more stable. It begins the month with a steady downwards drop, followed by a steady increase at its lowest point, which it does not reach at all in this scope. ADA here has a linear trend here, with minimal big movements occurring for the most part. The greatest movement occurs recently over the past few days. There is a decent drop, then a rally upwards, coming to the current situation of ADA.
Going into the day's range, ADA appears even more stable. There is a rough repeating pattern of ups and downs, no volatile movements evident. The greatest movement within this scope is at the beginning, ADA breaking the $2 mark after a small tumble to its resistant point. ADA currently is still stuck in this resistance area.
The current statistics for ADA is as follows:
Price - $2.13
24h Price change - $0.2636 (+14.11%)
24h low / 24h high - $1.85 / $2.20
24h Trading volume - $10,569,007,624.75 (-13.40%)
Market dominance - 3.03%
Market rank - 4th
Facts To Consider About ADA's Trend
Based on the trend analysis done earlier, it is evident that ADA is a stable cryptocurrency in the sense that it is resistant to any erratic movement. Based on this fact, it is suspected that ADA will not experience a great movement over the following few days, whether that be a drop or rise. However, there is a possibility, the current bullish trend unprecedented in ADA history. Another possibility is for ADA to remain stable at the current resistance area, not moving for some odd number of days before deciding to move to the next stage.
The reason for ADA's bullish trend is plausibly from the migration of people into its blockchain. This is because ADA runs as a PoS (Proof of Stake) cryptocurrency, which is much more environmentally friendly than PoW (Proof of Work), the crypto giants Bitcoin (BTC) and Ethereum (ETH) using this proofing technique. Now, why does it matter if ADA is more environmentally friendly for its bullish trend? The answer is Elon Musk. On the 13th of May, Elon Musk posted two tweets regarding the high energy consumption of BTC, which caused Telsa to no longer accept BTC as a payment method. This is because most electricity is based on fossil fuels, which are harmful to the environment, and that goes opposite of Telsa's aims for a more green world. With PoW cryptocurrencies, especially BTC and ETH demoted from Elon Musk's mention on power consumption as a concerning factor for BTC, many people would migrate to PoS cryptocurrencies from the more environmentally friendly option they offer, going by Elon Musk's thoughts.
Another possible reason for ADA's bullish trend is upcoming smart contracts for its blockchain. According to one article which is provided below (Decrypt - Smart Contracts are Coming to Cardano This Spring), ADA developers plan to launch a smart contracts-focused testnet at a deadline of the end of April. However, it has been past the end of April, and ADA has not created its promised testnet. This would raise the popularity and reputation for ADA, thus contributing to ADA's bullish trend. However, from another article linked below (be[in]crypto - Cardano Prepares to Launch Alonzo Testnet — Here Is What to Expect), ADA is preparing to launch the Alonzo testnet, which is the smart contracts-focused testnet mentioned earlier.
Further Reading
Decrypt - Smart Contracts are Coming to Cardano This Spring - https://decrypt.co/62935/smart-contracts-are-coming-to-cardano-this-spring
Decrypt - Proof-of-Stake Coins Cardano and Polygon Hit ATH After Musk Slams BTC - https://decrypt.co/71015/proof-of-stake-coins-cardano-and-polygon-hit-ath-after-musk-slams-btc
be[in]crypto - Cardano Prepares to Launch Alonzo Testnet — Here Is What to Expect - https://beincrypto.com/cardano-prepares-to-launch-alonzo-testnet-here-is-what-to-expect/
ADA's homepage - https://cardano.org/
ADA's roadmap - https://roadmap.cardano.org/en/
