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High-Conviction Coin Cardano Deserves Immediate Attention

Just a few years ago, many traders had never heard of Cardano (CCC:ADA-USD). It was an obscure little crypto coin, and the daily trading volumes for Cardano were anemic.

A concept token for Cardano (ADA) with a trading chart in the background.
Source: Shutterstock

It’s astonishing to consider that ADA has become the world’s third-largest digital asset. Could it actually take the No. 1 spot in the coming years?

Don’t dismiss the idea, as the cryptocurrency space is subject to rapid and unexpected changes. As Cardano grows in popularity and adoption, the possibility for disruption of the status quo is undeniable.

As evidence of ADA’s incredible progress, we’ll want to talk a look at the token’s recent price action. So, let’s start by covering that topic now.

Analyzing the Cardano Price

Not to brag or anything, but on May 10, I recommended a buy-on-every-dip strategy for Cardano traders and investors.

At that time, ADA was trading at around $1.64. Historically, the price tends to rebound after every pullback.

This summer, cryptocurrency traders were handed a prime dip-buying opportunity. On July 20, Cardano dropped to the $1.05 area, but not for very long.

A swift rally ensued, with ADA swinging up to the $3 area on Aug. 23. Folks with excellent timing could have practically tripled their investment in a matter of weeks.

OK, so I didn’t predict that this would happen. Nevertheless, I’ll stand by my assertion that Cardano is a worthy holding whenever the price pulls back.

Cardano is currently trading for about $2.87. One possible strategy would be to patiently wait for the next drawdown before taking a long position.

On the other hand, the momentum is powerful and there’s really nothing stopping Cardano from blasting to $3.50 and then $4.

Therefore, it’s perfectly fine to add to your position gradually, with the understanding that you can add more ADA if the price goes down.

A Token in Tokyo

Founded in 2015 by Charles Hoskinson and launched in 2017 as a tradable token, Cardano is sometimes characterized as a “by the people, for the people” type of currency.

IOHK, the company behind Cardano, hopes to use its blockchain technology to make the world a better place. With an ambitious vision, the company has even gone so far as to revamp Ethiopia’s education system.

Clearly, IOHK has a global perspective. However, some regions are stricter than others when it comes to cryptocurrency and blockchain regulations.

Thus, it’s truly impressive that IOHK and Cardano have overcome stringent regulatory hurdles and launched on BitPoint in Japan.

Apparently, this crypto coup was months in the making. It’s a big win, though, as BitPoint is Japan’s most popular exchange.

I wouldn’t exactly say that Cardano is regulator-proof. Still, getting the approval of Tokyo’s regulatory agency, the FSA, is a sign that even the toughest standards can hopefully be met.

Overtaking Bitcoin?

Obviously, it would be a game changer if Cardano ever overtook Bitcoin (CCC:BTC-USD) in terms of market capitalization.

This event certainly hasn’t happened. Yet, you never know what’s coming in the future. And Bitcoin’s dominance might not be as strong as you think it is.

Believe it or not, data from Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Trends data indicates that the search frequency for the phrase Bitcoin has fallen to a nine-month low.

Don’t get me wrong. Bitcoin is still easily the most popular cryptocurrency out there.

However, altcoins shouldn’t be dismissed, including a much cheaper token which appears to be catching up to Bitcoin in at least one respect.

As it turns out, Google Trends data points to a rapid rise in searches for “Cardano.”

Naturally, I expect that the recent rally in the ADA price was a contributing factor. That’s just how it usually goes in the financial markets.

If the price falls significantly, then the searches for Cardano will also probably decline. But in any case, it’s certainly interesting that the No. 1 cryptocurrency isn’t a dominator in all areas, at all times.

The Bottom Line

A lesson to be learned here is that assumptions can’t be relied on.

For example, you might have assumed that Bitcoin is always top-of-mind in the cryptocurrency investing community.

But now, here comes Cardano, ready to disrupt the crypto order as we know it.

So, don’t be too surprised if there’s a changing of the guard in the near future. Anything’s possible, and successful investors are always ready for the unexpected.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2021/08/high-conviction-coin-cardano-deserves-immediate-attention/.

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