According to CoinMarketCap, the price of Cardano (ADA) has increased by over 100% in the last seven days, aiding the cryptocurrency to displace Bitcoin Cash (BCH) in terms of market capitalization.
ADA is now conveniently maintaining the sixth-largest position in the crypto market. The current ADA’s price rally has been attributed to two major factors.
The first factor is that major digital currencies have been replicating the current strong upsurge of Bitcoin (BTC)’s price. While the second factor is related to upcoming developments in the Cardano ecosystem.
At the time of filing this report, ADA is trading at $0.3414, with about a 26% price upsurge in the last 24 hours.
Cardano (ADA)’s Current Price Move Is Majorly Technical
It’s true that Cardano has important upgrades that are capable of impacting its price, but none of these important upgrades were announced during this rally.
However, a technical analyst and trader had shared his opinion about the strong rally printed by ADA before it fully started.
On 30th December 2020, Michael van de Poppe, a crypto analyst and trader, popularly known as Crypto Michael in the industry, said he believes Cardano (ADA) would perform well in the first quarter of 2021.
“One of the platforms that will do well in coming quarter, I think will be Cardano. Majors are probably running first and this is definitely a major. As long as $0.11 holds (or $0.15), I think we’ll continue towards $0.27 and/or $0.40.”
A combination of technical factors and the expectations of the release of functional smart contracts in 2021 likely fueled the rally.
In the near term, analysts say that as long as Bitcoin (BTC) consolidates above $34,000 and shows technical momentum, large-cap altcoins, like Cardano (ADA), are expected to perform outstandingly.