- An analyst opined that ADA could hit $0.70 and a $500 billion market cap.
- Long-term ADA holders remained resolute by failing to sell.
Reaching a $500 billion market capitalization for Cardano [ADA] would surely represent a significant milestone and increased valuation for the cryptocurrency. But according to Dan Gambardello, the landmark is not attainable.
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However, whether this goal is feasible or merely speculative opinion depends on various factors, including investor sentiment, token adoption, and, most importantly, market conditions.
Optimistic with the target
As of this writing, Cardano’s market capitalization stands at a fraction of that amount at $12.73 billion. However, Gambardello, who is also the founder of Crypto Capital Venture, did not base his opinion on bias alone.
Instead, he shared a video on his YouTube page, explaining that the token’s historical performance and indicated potential on the chart. According to him, ADA’s display of strength during last year’s capitulation was proof that the token was massively undervalued.
Furthermore, he referred to the six-hour chart on a nine-month time frame, highlighting the signals that the token displayes in the last bull market, and how the signs are nearing once again.
In the same video, he pointed out the daily chart which had recently formed a falling wedge. This kind of pattern occurs when an asset’s price moves in a bullish trend before a price action correction takes place.
Most times, this signals a bullish reversal. Hence, Gambardello noted that a reversal could occur soon while setting a target of $0.70 for ADA.
Are holders stirred?
On-chain data showed that price-Daily Active Addresses (DAA) divergence was down to -32.44%. This metric reflects the correlation between sending and receiving addresses and the token’s price action.
Source: Santiment
While this metric alone might not serve an optimal effect on the network, the decline could propel investors to start valuing ADA higher to buy more. An increase in accumulation, in turn, could lead to a hike in value. This would thus spike Cardano’s market capitalization.
But to achieve a $500 billion market cap, ADA would require substantial growth and sustained influx into the Cardano ecosystem. One metric used to evaluate investors’ faithfulness to a project is dormant circulation.
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When this metric spikes, it infers a possible situation where long-term holders sell off their assets. However, a flatlined dormant circulation implies a potential resolve to HODL.
At press time, the 365-day dormant circulation was down to 464. Moreover, activity with the metric has been stagnant since 16 March. Therefore, this shows that a bunch of ADA holders are sticking to the asset until when it’s incredibly profitable to let go.
Source: Santiment
