Cardano (ADA) is one of the big performers in the top 20 today. It’s up by over 5% in early morning trading. At the moment, Cardano (ADA) is trading at a resistance point on multiple time frames and if it pushes above them, then it could be headed much higher. To put it in figures, if Cardano (ADA) pushes above $0.05 in the course of the day, then it could draw in more bulls into the market, and could see its value rise significantly in the short-term. The first target would be $0.057 which is a key resistance on the 1-day 200-day MA.
For the next several weeks, Cardano could be headed upwards, regardless of the direction that the overall market, led by Bitcoin (BTC), goes. That’s because it is in the middle of some big news at the moment. Cardano (ADA) is in the process of decentralizing, in what is commonly known as Shelley. Earlier in the month, there were fears that Shelley could be delayed again, but the IOHK team has come out strongly to alleviate this fear and put everyone at ease that Shelley is fully on track.
In essence, Cardano’s demand could keep rising for the next couple of weeks, and most likely spill over into the whole of quarter 2. That’s because, with Shelley, there will be a huge incentive to hold Cardano. That incentive will come in the form of staking. With the Shelley release, investors will be in a position to stake ADA and earn a passive income off it. This aspect to Cardano could play a huge role in driving up demand all the way into Q2. As this demand grows, it could create FOMO, and possibly push Cardano into a full-blown bull run.
But, can it make such gains if Bitcoin (BTC) continues to trade sideways? That’s a huge possibility. One trend that has emerged in the last two months is that altcoins are slowly charting their own trends, independent of Bitcoin (BTC). Litecoin (LTC), for instance, can be said to be in a clear uptrend and is backed by growing demand. It is showing strong signs of continuing this trend if its volumes are anything to go by. The same goes for Binance coin, and a host of other altcoins, which are all gaining independently. In essence, this can be termed as all-season, and altcoins could make significant gains before Bitcoin (BTC) eventually finds a clear direction. If this trend is anything to go by, then there is a reason to believe that Cardano (ADA) could be headed much higher this year.
Its uptrend could get a boost if Bitcoin (BTC) gains significant upside momentum. In the scenario that Bitcoin (BTC) gains upside momentum at this point, it could significantly push up the value of Cardano (ADA), and every other altcoin. In essence, Cardano (ADA) is trading at a point where it makes for a great buy. If it pushes from this price level to its all-time highs, anyone invested at current prices would make significant gains.