Cardano ($ADA) has caught the attention of a prominent cryptocurrency analyst who believes that the digital asset is set for a significant surge in price. With over 2.3 million subscribers on YouTube, Guy Turner recently shared a video highlighting the bullish pattern signs displayed on Cardano’s weekly chart. According to Turner, this pattern could lead to a substantial increase in ADA’s value, potentially reaching the major resistance level of $1.
Turner further explains that the fluctuation in ADA’s fortunes since October can be attributed to its correlation with small-cap stocks and the volatility of long-term interest rates. As these rates have recently decreased, ADA’s price has almost tripled.
Additionally, Turner points out the bullish signal from the total value locked in Cardano’s decentralized finance (DeFi) protocols. Last month, this value surpassed $400 million, indicating rising demand for ADA.
However, Turner does mention a cautionary note regarding short-term bearish trends. He suggests that this bearish selling pressure may be stemming from Emurgo, Input Output Global, and the Cardano Foundation as they sell ADA to fund their operations.
Nevertheless, Turner believes that these developments bode well for ADA’s long-term growth. Cardano has maintained its position as the leader in cryptocurrency development activity, surpassing Polkadot ($DOT) and Kusama ($KSM), according to data from on-chain analytics firm Santiment.
The growth of the Cardano network has been remarkable in the past year, with IOG’s development reports highlighting the launch of 152 projects and an additional 1,307 projects in the development phase. The platform has processed 79.7 million transactions, indicating an increase in adoption and usage.
In terms of token metrics, the report reveals that there are currently 9.1 million native ADA tokens in circulation, regulated by 81,621 token policies. Furthermore, the implementation of Plutus scripts for smart contract development has achieved significant deployment milestones.
Overall, the analyst’s optimistic outlook for Cardano ($ADA) and its potential for a major surge in price certainly highlights the positive developments and advancements happening within the Cardano ecosystem.