gimbal [ADA]: Beware the “warning” of this metric for altcoin
Cardano has been called everything from a ghost chain to a failure. Lately, however, many critics are eating their words after a rally from mid-March sent ADA’s price from $0.78 to $1.2. At press time, the ninth-largest crypto by market capitalization was trading at around $1.18 after falling 0.41% in 24 hours.
However, there just might be a method to the madness.
The end justifies the means ?
Crypto researcher Max Maher recently reviewed the Cardano breakout to point out some triggers that could have propelled the price of ADA. Additionally, he speculated that ADA’s price action throughout 2022 had a story to tell. Addressing the price spike and fall in January, the researcher explained,
“Cardano saw a rapid rise in price before dropping a little lower along with the rest of the market. As unexciting as the price action was afterwards, this price surge was still very significant as it showed the world that Cardano can support a DEX [SundaeSwap]. Sure, not without a few bugs, but a DEX nonetheless.
Maher also observed that watching TVL, Minswap’s dominance – around 63.52% at press time – was definitely a factor. Additionally, sidechain Milkomeda helped Cardano realize the Ethereum virtual machine [EVM] compatibility.
ADA the builder
So, how much building is going on in the Cardano ecosystem? According to data from Santiment, development activity has mostly moved sideways. If we are far from the growth peaks observed at the end of January and then in mid-February, it is at least a sign of stability.
Source: Santiment
When it comes to ADA’s price action, a rally over 30% certainly led to a lot of hype. However, when zooming out, it can be seen that ADA’s price only returned to where it was in early February.
For his part, Maher noted,
“The good thing about negative price action is that it doesn’t mean developers stop building.”
Well said, but one area of concern for bulls is that the DAA Divergence of Adjusted prices was showing consistent sell signals at press time.
Source: Santiment
Save this date!
In an AMA video shot in Dubai, Cardano founder Charles Hoskinson confirmed that the Vasil upgrade will likely be an “overcharged version”. Even so, many ADA investors look forward to it. Why is that? Well, if the past is to be trusted, ADA typically sees high-altitude rallies before a hard fork.
So enjoy the spring weather and the smooth recovery of ADA. However, be prepared for a hot summer market as the Vasil hard fork closes in.
#ADA the price often goes up before HARD FORK
• Shelley: 500%
• Mary: 1100%
• Alonso: 135%
• Vasil in June 2022: ???$ADA will break ATH soon? Tell us your target price#Cardano Ecosystem
➡️https://t.co/7ntRNt2gpL#CardanoADA #CardanoCommunity pic.twitter.com/1kMAQKoIjQ— Cardians (@Cardians_) March 26, 2022