A closely followed financial analyst says Cardano (ADA) is deviating from other crypto assets as the price of the altcoin surges.
In a new video, the host of financial education YouTube channel InvestAnswers says the upcoming rollout of the Vasil hard fork this month is driving ADA’s current rally.
[adinserter block="1"]“It always rallies before hard forks. It’s pretty obvious that the spike right now is due to the Vasil hard fork, which has supposedly a lot of great stuff coming: a lot more scalability in terms of TPS [transactions per second], a lot more smart contract functionality, a lot more DeFi [decentralized finance] capabilities, etc.”
He says network upgrades are historically bullish for ADA.
“If you look back at history, you can see back to the Shelley hard fork in July 2020, Cardano went up 500% and that was, I think, Mary in March 2021, it went up 1,100%. It was a big move up to that hard fork while the most recent Alonzo update saw the DeFi asset rise about 135% and reach an all-time high of $2.96.”
Cardano surged to $0.63 on June 1st, its highest since plunging to a low of $0.42 in May. The analyst says that the altcoin may not have broken its previous highs, but the price movement suggests that ADA is decoupling from other digital assets.
“We’re currently around $0.65, something like that, so it hasn’t been smashed down but it is deviating and becoming uncorrelated from the other assets. If you look at Cardano/Ethereum pair (ADA/ETH), Cardano/Bitcoin pair (ADA/BTC), etc., it is really breaking out, so we’ll watch this very carefully.”
With its recent rally, Cardano upstaged XRP to become the sixth-largest crypto asset by market cap for a brief period of time before returning to the seventh-ranked position. At time of writing, Cardano is trading for $0.55, down by 12.5% over the last 24 hours.
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