Cardano’s ADA token has been a beneficiary of the current market rally. However, what are the prospects of the asset hitting the $10 mark by the end of next year?
At press time, ADA trades at $0.40, marking a downtrend of 1.36% in the last 24 hours. However, ADA increased by 12.36% over the past week, in line with the crypto market.
The crypto asset has benefited from the recent market rally, which pushed the industry over the $1 trillion market cap value for the first time in over two months.
ADA’s strong performance has led it to some impressive technical gains. The asset is trading in line with its 10-day moving average (MA) of $0.4020, and it currently outperforms all other short-term MA metrics. ADA’s 100-day and 200-day MA, which stand at $0.41 and $0.40, respectively, also align with its trading price.
ADA displays a positive moving average convergence divergence (MACD), indicating a buy signal. And with a relative strength index (RSI) of 39.20, the token is still underbought.
Last week, Cardano founder Charles Hoskinson announced that he would be accepting ADA at his restaurant and whiskey bar in Wheatland, Wyoming — where he lives.
Hoskinson had said in July that he would launch the venture. The crypto founder claimed at the time that he would make his restaurant crypto-friendly, and he reiterated that sentiment last week.
Market participants and ADA enthusiasts would be watching to see how well ADA performs as a payment method. The restaurant industry hasn’t been swift to accept crypto for payments, but this doesn’t mean that ADA will fail.
The current price action for many crypto assets has been impressive. Because the crypto market has been on a sustained downtrend, many investors will likely troop in to cash out on the market’s gains.
However, the crypto market is still significantly affected by the broader economy. Inflation fears remain high, and possible interest rate hikes by the end of the week could put a damper on the current rally.