Crypto analyst Guy Turner has forecasted a potential significant price surge for Cardano (ADA). He suggests that ADA could rally to as high as $1, which is the next significant level of resistance. This projection is based on ADA’s weekly chart, which indicates that the crypto token is painting a bull flag.
However, Turner doesn’t find a rise to $1 particularly impressive, especially when compared to the gains of SOL’s price. He attributes Cardano’s underperformance to its fundamentals, particularly the supply of the token outweighing its demand. He also points out that Cardano’s founding entities, IOG, EMURGO, and the Cardano Foundation, have been selling a large portion of their ADA holdings to fund their operations, contributing to the sell pressure for the crypto token. Despite this, Turner believes that the supply and demand dynamics have not significantly impacted ADA’s price.
Turner remains bullish on Cardano in the long term, noting that the interest rates, which have had a significant impact on ADA’s price, are likely to continue declining. He believes that ADA could continue to rally alongside the broader crypto market despite its poor fundamentals.
Whether ADA will hit new all-time highs this year, according to Turner, depends on its upcoming milestones. One of these is the CIP 1694, a proposal that has been a focus in the Cardano ecosystem over the past year. This proposal, which has been voted upon and passed, is set to be implemented with the Chang Hard Fork early this year. Another significant milestone is the likely introduction of Cardano’s first fiat-backed stablecoin this year. IOG is reportedly working on their stablecoin project, which could be released soon. Mehen Stablecoin’s USDM, referenced by Turner, is also expected to launch in the first quarter of this year.
The introduction of a Cardano fiat-backed stablecoin is seen as a crucial milestone as it can further enhance the DeFi landscape on the network. Turner highlighted the difficulty of growing decentralized applications (dApps) on the network without the support of liquid fiat stablecoins.
Following Turner’s video, Mehen provided further updates on the USDM launch, stating that the stablecoin is currently in the final stage of the audit. Once completed, they plan to announce a final launch date.
Disclaimer: This article is for educational purposes only. It does not represent the opinions on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided entirely at your own risk.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Guy Turner |
| Companies | IOG, Cardano Foundation, FX Empire, NewsBTC, EMURGO |
| Currencies | Cardano, Solana |
| Securities | None |
