In a captivating development, a highly followed cryptocurrency analyst has recently proposed the possibility of a substantial upward surge for Cardano ($ADA), a prominent contender to the Ethereum ($ETH) smart contract platform.
Sharing his insights in a video on the YouTube platform, which boasts over 2.3 million subscribers, analyst Guy Turner highlighted the bullish patterns emerging on ADA’s weekly chart. These patterns indicate the potential for a significant rise in value, with the prospect of reaching $1—a key resistance level.
He elucidates that the fluctuations in ADA’s fortunes since October are closely tied to its correlation with small-cap stocks and the rapid shifts in long-term interest rates. With the recent decrease in these long-term interest rates, ADA’s price has nearly tripled.
A noteworthy observation made by Turner is the bullish signal emanating from the total value locked (TVL) in Cardano’s decentralized finance (DeFi) protocols, indicating a surge in demand after surpassing $400 million in TVL last month.
However, he issues a caution regarding short-term bearish trends looming over ADA due to ongoing sell pressure. According to Turner, this selling pressure might be attributed to Emurgo, Input Output Global, and the Cardano Foundation as they sell to finance their operations.
Despite these short-term challenges, Turner remains optimistic about ADA’s long-term growth prospects. Notably, Cardano has maintained its position as a leader in cryptocurrency development activity, surpassing competitors like the “blockchain of blockchains” Polkadot ($DOT) and its public pre-production environment Kusama ($KSM), according to data from on-chain analytics firm Santiment.
The past year has witnessed exponential growth in the Cardano network, as reflected in IOG’s development reports. These reports highlight the launch of 152 projects, with an additional 1,307 in the development phase on the network. The Cardano platform has processed 79.7 million transactions, indicative of a surge in its adoption and usage.
Regarding token metrics, the report reveals 9.1 million native tokens circulating within the ecosystem, regulated by 81,621 token policies. Furthermore, the implementation of Plutus scripts, a toolkit for smart contract development, has seen 6,260 deployments for version 1 and 4,981 for version 2. This underscores Cardano’s consistent progress in the deployment and execution of smart contracts.