The native token of the largest cryptocurrency exchange Binance has been ranked third in terms of capitalization for a long time. Many experts consider its growth to be speculative. Binance Coin (BNB) often rises due to the verbal interventions of Changpeng Zhao (CZ), CEO Binance.
The rise of Cardano (ADA), on the contrary, is organic and is based on the rich functionality of the platform and big investments from the institutionals. In the near future, it will be possible to launch smart contracts on the platform, and then Cardano will become the most dangerous competitor to Ethereum (ETH). In anticipation of the Alonzo update, ADA is now growing at the fastest pace among large-cap cryptocurrencies, outperforming even XRP. Experts believe that after the update, ADA will leave BNB behind as well.
ADA’s capitalization is now over $63.6 billion, and only $4 billion less than BNB’s capitalization. The capitalization of the cryptocurrency Ripple (XRP) after the price became over $1 approached $48 billion. The capitalization of the entire cryptocurrency market exceeded $2 trillion, and at the same time, the bitcoin share is less than a half, about 45%. In fact, the forecasts that were announced at the beginning of the year that 2021 will be “the season of altcoins” – are justified. And Cardano (ADA) makes a big contribution to the cryptocurrency market.
In terms of technical analysis, the outlook for the ADA is very good. Popular trader and crypto strategist Michaël Van De Poppe states that the target of Cardano’s move is the price of $5. This means an increase of 2.5 times. Van de Poppe states:
– What is the target zone if Cardano is going to continue moving? That is very simple. We are looking at a continuation with Fibonacci extension… The next target zones for Cardano in a new impulse wave is $3.35 and $ 5.00.
However, the expert warns those investors who are about to invest in ADA right now. Time is a bit lost, we need to wait for the correction to the levels of $1.47 or $1.33. There is no contradiction here. The forecast for growth to $5 is based on the option of continuing the move. But according to Van de Poppe, it cannot be ruled out that the rise of the ADA will not continue. In his opinion, ADA has very strong support levels of $2 and $1. The expert says:
– A level around $1 is pretty much a very heavy support zone, could be a trigger for a long entry…
The explosive growth in ADA came after bitcoin, Ethereum, Litecoin (LTC) and XRP rallied one after another. This means that Cardano (ADA) is not autonomous, and its quote depends on the state of the market as a whole. In particular, there is now a strong correlation between ADA and XRP. Analysts attribute this to the fact that both cryptocurrencies are in similar situations in terms of fundamental analysis. Ripple expects positive results from the court. Cardano opens up a new market segment with the Alonzo update.