According to Coinmarketcap, Cardano is now the 9th largest coin by market capitalization, worth more than $2 billion. Compared to the other cryptocurrencies, it has been an excellent performer, rarely leaving the top 10 list, despite suffering the safe problems as other coins. If you are considering an investment in crypto, then you simply cannot avoid looking at this particular coin because of its potential and profitability. In this post, we’re going to focus on the remaining 3 or so months of the year through the Autumn season to determine how an investor can make money out of it.
What you should know about ADA
Among other cryptocurrencies, ADA is a fairly new coin having been launched in September 2017. That is almost a decade after Bitcoin’s launch! The founder of ADA is one Charles Hoskinson, who was also a co-founder of Ethereum. Instead of sticking with ETH, Hoskinson chose to launch his own blockchain technology with ADA (ADA) as the native token. Although lauched in 2017, the project was developed over 3 or so years until its final launch. The goal of ADA is to create a better blockchain than Bitcoin or Ethereum. According to the company CEO, other blockchain networks have to choose between speed, security and decentralization, but ADA wants to achieve all three pillars just as Satoshi Nakamoto envisioned with Bitcoin. (Do you know: What will happen to Bitcoin in 2018?)
At this point, I should mention that most of ADA’s projects have not been actually implemented. According to the company’s roadmap, the company is still in the bootstrapping phase and only a few projects have been implemented. One is Project Icarus that is basically a wallet for storing coins, and the other projects just improvements to the project in general. Suffice it to say that ADA still has a long way to go before they achieve the vision of their founder. However, the vision behind ADA is what drives the company and inspires confidence among investors. (Investing in cryptocurrencies: Watch these 5 profitable cryptocurrencies)
What about its price?
As a trader, you’re probably more interested in the price than the company itself; the previous section was meant for investors. Anyway, the live ADA charts look very similar to those of other cryptocurrencies’, where the value has been declining for most of the year thus far. Just like Ethereum, ADA reached its peak value at the start of the year to reach an all-time high value of about $1.4 and a market cap of over $33 billion. That was almost a 1,500% increase in value from its $0.1 price in December 2017. Also similar to other coins, this spike in value was driven mainly by increasing demand as investors became more attracted to altcoins and dumped Bitcoin. (Some of the: Alternative Cryptocurrencies beside Bitcoin to invest in)
Then in January, prices began to drop because of fear over regulatory changes. South Korea was seeking to ban all crypto trading, and since it was (and still is) a major crypto market, there was a massive selloff of all coins, ADA included. Since then, the coin has experienced the same downwind as all other coins, decreasing in value to reach the current price of $0.08 – lower even than the value back in December 2017. (Are you wondering: Will Cryptocurrencies Recover From Their Price Slump In 2018?)
Nevertheless, hope is not completely lost, as the coin is beginning to show on the price charts. The picture above is a 4-hour price chart of ADA, and you can see that there has been a price rally over the past two weeks. In fact, tick volume shows that there has been a significant rise of traders entering into long positions today, giving ADA a much needed boost in value. The technical analysis also echoes the positive forecast for ADA this Autumn. Already, prices have crossed above the 100 simple moving average, an indicator that has kept prices trending downwards for months. The next hurdle is going to be the resistance at $0.88 where prices are now headed. In order to pass this point and keep moving upwards, ADA needs to get a boost from the fundamentals side of things; but if it does surpass this level, then prices will keep going up throughout the Autumn. (Do you know: What will happen to Ethereum in 2018?)
As we mentioned earlier, the main driving force behind ADA’s rise was the different vision the creators had for it. Unlike Ethereum and Bitcoin that use Proof of Work, ADA uses Proof of Stake, and that allows the blockchain to handle a lot more transactions per second. To prove that this could actually work, ADA has recently been added into the Abra crypto wallet. Abra provides a means of converting crypto into fiat and vice versa both in the US and EU. This announcement was made on the 4th of September, which explains the rise in value for the coin this month. Although this may seem like a short-lived spike in value, it does indicate that investors still demand ADA in the crypto markets, and that is bound to lift the value of ADA, at least in the coming months. (These are: The Most Prominent Cryptocurrency Hacks and Scams You Should Know)
There is also another reason why we believe ADA may increase in value this Autumn, and it has to do with the much awaited SEC decision on the VanEck Bitcoin ETF. The regulator is expected to give their decision on or before the 30th of September 2018, after which the crypto markets will surely react violently. In anticipation of the SEC decision, investors are pulling their money away from Bitcoin and investing it in other coins – lately ADA has become a particularly lucrative alternative. Many experts believe that the SEC won’t approve of the Bitcoin ETF, just as they did with the one proposed by the Winklevoss twins earlier in the year. If they don’t, then ADA’s value will surely skyrocket as that of Bitcoin dips further. (Ripple Price Forecast, Making Money Moves!)
Final predictions for ADA this Autumn
The Autumn trading season for ADA will begin officially once the SEC announce their decision, and this will be the determining factor. If they don’t approve of it, then we shall see ADA rise in value toward the $1 mark and probably even beyond during this season. On the other hand, if the SEC approves of the first Bitcoin ETF, ADA may fall back to the previous lows of $0.06. It is impossible to predict what the SEC will do, but since most experts are pessimistic about the ETF, it’s best if you looked for buying opportunities this Autumn. (What Is The Future Of Cryptocurrency In Finance?)
To find out more about the future of Cardano, watch this short video: