Cardano has been called everything from a ghost chain to a bust. Lately, however, many critics have been eating their words after a rally that began in mid-March ADA’s price from $0.78 to peaks of $1.2. At the time of writing, the ninth largest cryptocurrency by market cap was trading at around $1.18 after dropping 0.41% in 24 hours.
However, there may just be a method to the madness.
Does the end justify the means?
Crypto researcher Max Maher recently took a look at Cardano’s breakout to point out some of the triggers that could have pushed ADA’s price up. What’s more, he theorized that ADA’s price action in 2022 has a story to tell. Addressing the January price spike and fall, the researcher explained†
“Cardano saw a rapid price increase before falling a lot lower along with the rest of the market. As unexciting as the price action was after that, that price increase was still very significant as it showed the world that Cardano can support a DEX [SundaeSwap]† Not without a few bugs, of course, but a DEX nonetheless.”
Maher also noted that when looking at TVL, Minswap’s dominance – around 63.52% at the time of going to press – was certainly a factor to consider. In addition, the side chain Milkomeda Cardano helped realize Ethereum Virtual Machine [EVM] compatibility.
ADA the builder
So, how much is being built in the Cardano ecosystem? According to Santiment data, development activity has largely gone sideways. While it is a long way from the growth peaks of late January and then mid-February, it is at least a sign of stability.
As far as ADA’s price action goes, a rally of over 30% certainly sparked some hype. However, if you zoom out, you can see that ADA’s price did not return to where it was until early February.
For his part, Maher noticed†
“The good thing about negative price action is that it doesn’t mean developers stop building.”
That’s well said, but one concern for Taurus is that the adjusted price DAA divergence flashed consistent sell signals at the time of writing.
Save the date!
In an AMA video shot in Dubai, Cardano founder Charles Hoskinson confirmed that the Vasil upgrade would likely be an “overloaded release”. Still, many ADA investors are looking forward to it. Why is that? Well, if the past is to be trusted, ADA usually sees high-altitude rallies for a hard fork.
So enjoy the spring weather and ADA’s gentle recovery. However, be prepared for a heated market in the summer as the Vasil hard fork gets closer.
#ADA price often rises before HARD FORK
• Shelley: 500%
• Mary: 1.100%
• Alonzo: 135%
• Vasil in June 2022: ???$ADA will ATH break through soon? Tell us your price target#cardano ecosystem
https://t.co/7ntRNt2gpL#CardanoADA #CardanoCommunity pic.twitter.com/1kMAQKoIjQ
— Cardians (@Cardians_) March 26, 2022