Cardano (ADA) has been getting all the attention lately and this is mostly due to the derivatives data showing pro investors aren’t bullish and also because its early 2021 price performance. Their loyal fanbase have been waiting for the launch of the network’s smart contract potential in the upcoming Alonzo upgrade
Cardano (ADA) has been getting all the attention lately and this is mostly due to the derivatives data showing pro investors aren’t bullish and also because its early 2021 price performance. Their loyal fanbase have been waiting for the launch of the network’s smart contract potential in the upcoming Alonzo upgrade.
Even though the rise of DeFi happened and the total value locked in decentralized finance applications increased above $76 billion, Cardano investors have been waiting almost for four years to the project to fulfil all its promises. Traders seem stubborn even if it’s a 50% rally ever since July 21 was supported with optimistic expectations or fundamentals. The movement could have been a “return to the mean” pointing out that previous bearish trades were shut down after negative performance.
Cardano has been performing negatively due to the failed statistics from Cardano founder, Charles Hoskinson who said that the network would have “hundreds of assets,” with “Thousands of DApps” by July. Hokinson protected himself on YouTube by saying that more than $10 million in nonfungible tokens (NFTs) have been sold through the network but this is a neutral comparison to this previous estimate. During July 14, IOHK the Blockchain development team behind Cardano relocated the Alonzo Testnet to an intercessor point that lets developers, validators and stake pool operators.
Even with these bullish developments, Veteran technical analyst Peter Brandt said Cardano’s price chart was a classical “head and shoulders” pattern which could not lead to a 60% or higher crash. With reaching at $1.13 billion on May 16, the aggregate open interest on ADA futures contracts decreased down to a $285 million low on July 19. As trader’s interest in the altcoin appears to be suddenly increasing as the indicator is at $530 million. After May 19 crash, Cardano’s funding rate has been fluctuating from zero to slightly negative pointing out that shorts are the ones asking for more leverage. Nonetheless, On Aug. 7, pointed out that these were the early signs of a trend inversion but this is still not confirmed.