No, it’s not too late to buy Cardano. If market dynamics are anything to go by, it is still early days for ADA.
The bullish rally for Cardano (ADA) in September last year has investors wondering whether it is too late to buy ADA tokens. Well, it is still not too late to buy ADA, whether you want to add it to your portfolio or accumulate more ADA holdings. Various market factors show that those who are just now joining the ADA rally have a lot to benefit.
Below are some of the reasons why it is still the right time for investors who want to buy Cardano.
5 Reasons Why It Is Not Too Late To Buy Cardano:
The Broader Market Is Gaining
Most altcoins follow the trend of Bitcoin. When BTC gains, so do many altcoins, and when BTC dips, many altcoins also dip. Currently, Bitcoin is showing strong signs of recovery; hence ADA's rally is not far off. If the overall market sentiment is turning bullish, we could see ADA making more gains, hence making it an ideal investment at the moment.
Looking at Cardano's monthly gains, the coin has managed to create a new all-time high at $3.10. Despite being rejected at this level, ADA has still shown strong signs of recovery, and with a continuation of the bullish rally, we could see new highs being created.
Currently, the broader market is consolidating, as BTC fights to go towards $40K. If strong market bulls push BTC towards $70K, we could see ADA creating new highs that will push prices towards an even bigger uptrend.
The major resistance that Cardano needs to break out of is $2. It has attempted to rally to this level in the past month but has failed because of a lack of market support. Nevertheless, it has shown strong resilience in maintaining levels above $1.02, which indicates that selling pressure is not high.
Cardano Has Good Fundamentals
The Cardano network cased a major buzz in the last quarter of 2021 because of the Alonzo hard fork upgrade. The upgrade launched smart contracts into the Cardano network, which will see heightened blockchain adoption and push Cardano towards new highs.
News of this upgrade rallied prices even with market support weakening. Because of this upgrade, Cardano has the capability to host decentralized finance protocols, which will positively influence Cardano's prices.
One of the main factors that have led to the increasing prices of Ethereum is the network's ability to host DeFi protocols. Cardano is now going to this sector, and its objective is to become a major DeFi hub. If the coin can achieve adoption from DeFi developers, ADA will rally.
As stated, this upgrade is yet to happen. The news of the upgrade happening is what influenced the recent ADA price rally so further updates are only to cause the same positive influence.
Cardano's Founder Remains Bullish On Prices
Investors are not the only group that is going bullish on Cardano's prices. Cardano's founder, Charles Hoskinson, recently gave a statement that shows he is very positive about Cardano's uptrend. According to Hoskinson, the prices of Cardano will reach $150 by the end of the year.
Hoskinson stated that one of the reasons that will influence such a rally is the network upgrades. Cardano is currently the third-largest cryptocurrency after Bitcoin and Ethereum. If it manages to build DeFi capability, many developers will jump in to leverage the network's potential. For this reason, Hoskinson believes that ADA's prices will skyrocket in 2022.
Hoskinson has been a major supporter of his invention, and this factor has always played in favour of Cardano. He has always shown commitment to the network and is also a major crypto advocate on Twitter. His frequent tweets and efforts to ensure that the network can deliver 100% to users are some of the reasons why Cardano's market capitalization is the third-largest in the crypto charts.
Hoskinson Supports Token Burning
Cardano has a maximum supply of 45 billion tokens, and only a third of these are in circulation. This has raised trader concerns on whether the prices of ADA will suffer in future if the remaining ADA tokens go into circulation. However, Hoskinson recently addressed these concerns in a manner that revealed it was still early to invest in ADA.
In a video interview, Hoskinson stated that he was willing to support developers who could launch a Cardano token burning mechanism that any user could access. This will help eliminate the number of Cardano tokens that are in supply. The forces of demand and supply will eventually have a role to play in the rising Cardano's value.
As much as Hoskinson proposed this, the mechanism has yet been developed, and a roadmap for the same is yet to be provided. However, what remains certain is that if it comes into effect in future, it will positively affect ADA. In 2021 Ethereum launched a similar mechanism that aided in ETH's recovery to over $3800.
Read Also: Will Cardano Make Me Rich in 10 Years?
Cardano Continues To Garner Support
Cardano (ADA) is also gaining support from the most unusual of investors. Recently, Glauber Contessoto, a 33-year old crypto investor who came into the limelight after becoming a millionaire out of investing in Dogecoin, has become a supporter of Cardano. Contessoto stated that he was willing to go all-in on ADA because he speculates that prices will increase.
Gaining the support of major crypto enthusiasts is good for Cardano because it will increase the hype surrounding the coin and prompt more buying pressure. If Contessoto rallies up support for Cardano as he has rallied up support for Dogecoin, we could see the prices increase in the coming months.
These factors show that it is still an opportune time to buy Cardano. Those who feel left out by the current bullish rally still have a chance of making more gains in future when ADA's prices shoot beyond $3. Cardano’s gains are also expected to be even higher on a long term scale.
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