What should investors take from Cardano’s (ADA-USD) recent upsurge as the crypto market rebounds? The crypto market, like the stock market, moves on sentiment. Overall positivity leads to capital inflows in both cases. The opposite is of course true. But crypto investors arguably have to rely on sentiment to a greater degree. That means finding evidence that sentiment is moving toward the positive or negative and reacting accordingly. A recent article points to indications from data analytics platform Santiment that look positive.
Santiment recently took to Twitter (NYSE:TWTR) to share that it believes Cardano is headed in a positive direction, which means higher prices. In fact, their best guess is that ADA should meet its next resistance level around a price of $1.20. If that happens then ADA will return quick gains of 20%. So why should enthusiasts believe Cardano could soon reach $1.20 price levels?
The answer to that question is partially due to a spike in project volume based on that same article. It makes the claim that 400 projects were added to the ADA blockchain network in March. That brings the total number of projects built on the network to 900. That is a significant increase to be sure. Cardano is launching NFTs, wallets and DeFi lending among those projects.
And it isn’t only project volume that is increasing by leaps and bounds at Cardano. The total number of wallets on the network is around 3.3 million currently. It was only last year when that figure eclipsed the 2 million mark.
ADA prices have flirted with the $3 mark as recently as September. There’s little indication that prices could quickly reach those levels soon, though. But if they can breach that $1.20 resistance level, then technical traders believe prices can move in that direction. Cardano is undergoing a hard fork to its Vasil network update in June. For those who agree with Cardano founder Charles Hoskinson that it will spike prices, now may be the time to load up.
On the date of publication, Alex Sirois 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.