The Cardano price broke out above a key resistance level as cryptocurrencies rebounded. ADA jumped to $2.3750, which was the highest level since September 25. Its total market capitalization rose to more than $74 billion, making it the fourth-biggest coin after Bitcoin, Ethereum, and Binance Coin.
ADA price action
Cardano is a relatively controversial blockchain project. The network is helping solve some of the biggest challenges facing the world. For example, in Ethiopia, the developers are helping to decentralize the education sector.
Cardano is controversial because most people don’t know what the project does. In July, Michael Novogratz, one of the best-known professionals in blockchain, asked his followers to show him some of the apps that were built using Cardano.
At the time, it was difficult to pinpoint those applications since Cardano became open to developers only recently. This happened when the developers launched what is known as the Alonzo hard fork. The fork, which is part of the Goguen era, helps developers build decentralized apps.
In the past few weeks, developers have launched several apps built using the network. Some of the projects built using Cardano are Daedalus, Cardano Wall, Crypto Mage, Gimbalas, and Adafolio, among others.
Still, there are concerns about whether these projects will become successful. Also, there are concerns about whether the new platform came too late considering that developers have already selected their platforms.
Ethereum has already won the race and is responsible for about 80% of all blockchain projects. Other fast-growing platforms like Fantom, Avalanche, Algorand, and Solana have already taken a substantial market share.
As such, the main concern is whether Cardano is worth more than $78 billion. This makes it bigger than companies like Bank of New York Mellon, Carlyle Group, and even Affirm.
Will Cardano price soar to $10
In this technical analysis, I will seek to answer one of the most popular questions on whether Cardano price will ever rise to $10.
On the four-hour chart, we see that the ADA price managed to rise above the descending trendline shown in green. The price has moved above the 25-day and 50-day moving averages. The price is also along the 38.2% Fibonacci retracement level.
Therefore, in the near term, there is a possibility that the bullish trend will continue as bulls target the next key resistance at $3, which is about 30% above the current level.
As to whether the price will rise to $10 in 2021, that is a hard call since the price is about 335% above the current level. In 2021, however, there is a possibility that it will happen. For that to happen, bulls will need to move above key resistance levels like the all-time high of $3 and the midpoint at $5.
