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Cardano price analysis: highs are going forward to $0.20

By Alexandra Pankratyeva

16:42, 15 July 2020

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Cardano price analysis

That is official: Cardano has proved to be one of the best-performing cryptocurrencies of 2020. Hitting the price bottom for the year during the March sell off, Cardano has surged exponentially since then, outperforming the pace of Bitcoin by 200 per cent and its peer altcoins by 250 per cent.

Cardano price analysis

Cardano price analysis: will ADA lead the altseason?

Cardano has experienced a great deal of media hype recently, showcasing ADA as the flagbearer of the upcoming altseason. Indeed, the Cardano (ADA) price chart has been showing outstanding performance recently, strengthened by its decoupling from Bitcoin over the past several months.

The fact that Cardano (ADA) and Bitcoin (BTC) prices do not move in line with each other proves that Cardano is capable of sustaining significant growth even when Bitcoin and the crypto market in general is stagnant.

The Cardano positive momentum is backed by solid numbers: since its March lows the ADA has surged by a revolutionary 329 per cent and the overall year-to-date gains for the coin comprise almost 200 per cent. At the moment of writing, 14 July 2020, Cardano occupies the 6th place in the list of top 10-cryptocurrencies ahead of Binance Coin and Litecoin with the market capitalisation of $3,4 billion.

Cardano price analysis

Cadrano (ADA) news: reasons behind the rise 

To get a clearer picture of what makes the ADA price surge, let’s get back to the latest Cardano coin news. Considering the past few weeks we can’t help but mention the Cardano Virtual Summit, where a series of important announcements were highlighted:

Shelley has arrived 

After five years of intensive research and development the Cardano ecosystem has finally stepped into another major upgrade – the Shelley era, signalling the early steps in the Cardano’s way towards decentralisation. The first Shelley node on the mainnet went live on 1 July 2020.

ADA coin

At the end of 2019 Cardano launched the “incentivised testnet”, where the ADA holders could pool their resources to validate the Cardano ledger and earn the rewards. The process is known as “staking”.

Stake pool operators are getting acquainted with the new architecture, helping to test a simulated hard fork with the aim to reveal bugs before the real Cardano hard fork event planned for the end of July.

The Shelley rollout is considered as confirmation that the platform is finally ready to take on the competition of other major crypto networks. The growing interest is backed by the number of staking pools that have been formed. Soon after the launch of the Incentivised Testnet, over 920 stake pools were formed by users and more than 12.62 billion ADA coins were stacked.

XRP/USD

0.40 Price
-1.160% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.00331

Oil - Crude

80.34 Price
+1.770% 1D Chg, %
Long position overnight fee -0.0095%
Short position overnight fee -0.0042%
Overnight fee time 22:00 (UTC)
Spread 0.03

BTC/USD

16,806.45 Price
+1.640% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 66.00

Natural Gas

7.00 Price
-4.530% 1D Chg, %
Long position overnight fee 0.0486%
Short position overnight fee -0.0751%
Overnight fee time 22:00 (UTC)
Spread 0.005

Commenting on the major benefits of the Cardano Shelly upgrade, Bakyt Azimkanov, the director of global communications and marketing for the Cardano Foundation, mentioned: “Key benefits that Shelley will bring include: decentralisation, energy efficiency, more practical and functional applications for users, provably secure consensus, verifiable random function, hard fork combinator, multi-sig, and much more.”

Cardano and the DeFi sector

Another trigger behind the Cardano price upward movement is its potential implementation by the DeFi sector. Decentrilised Finance (DeFi) and supply chains are the two very lucrative sectors Cardano is targeting after the hard fork at the end of July.

The DeFi sector has been continuously growing over the past several months. At the beginning of July 2020 the total value locked (TVL) in decentralised finance has surged twice to reach $2 billion. While Ethereum dominates the DeFi space, IOHK CEO Charles Hoskinson believes Cardano is capable of becoming its competitor and taking a part of the TVL “winning the race for Decentralised Finance”.

Cardano Coinbase partnership

The Cardano gains could be also affected by the announced partnership with Coinbase for custody and staking support of ADA.

According to the deal, ADA holders and institutional investors will be able to store and hold their assets in Coinbase Custody’s cold storage, preserving the right to delegate their stake. This feature is planned to be implemented in the fourth quarter of 2020.

Charles Hoskinson commented: “With Cardano, we believe we can create a revolutionary solution which will be able to offer access to finance and investment to swathes of the population who have previously been shut out of the system”.

Cardano analysis: top alt-gainer’s rally continues

Considering all the latest Cardano crypto news and ADA analysis, it seems like the highs are going forward. Looking at the daily chart of ADA/USD we can see a massive recovery from the March low of $0.0207. The latest ADA price as of 14 July was $0.129, which is just 5 per cent lower than its 52-week high of $0.136.

During the last couple of months the ADA upward channel has been threatened twice with a possible breakout in early May when the price touched the resistance level of $0.055, and early June, when the next resistance at $0.088 was hit. After every attempt the ADA/USD moved a bit sideways for almost a month.

The ADA price analysis shows that last week the crypto experienced an impeccable rally, breaking the barriers at $0.10 and $0.12. The impressive rally made it above $0.14 but failed to move higher, having bumped with the reversal.

Cardano price analysis

Is Cardano a good investment?

According to the recent Cardano (ADA) price prediction, the Cardano uptrend is not over and will eventually renew its movement above $0.14. The upcoming public staking of ADA tokens, which is around the corner, can serve as another positive catalyst to keep Cardano going forward towards the next milestone of $0.20. The staking feature will be opened to the general public in August and could trigger ADA to double in price.

Read more: Ethereum price forecast: looking for reasons to be bullish

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