By Hannah Perez
rose above the dollar after several weeks in bearish territory. Morningstar’s portfolio strategist anticipates ADA to become one of the biggest cryptos.
With the largest cryptocurrency approaching the crucial USD $40,000 level, the digital currencies market seems to be reversing its bearish trend
is preparing to accept digital currencies. The rise comes after a multi-week collapse.
Cardano (ADA), the fifth-largest cryptocurrency by market capitalization, did not lag behind the dramatic rally. This day, the ADA token is up nearly 12%, trading above the dollar level. After reaching an all-time price high above USD $2 in mid-May, Cardano
has been in bearish territory for the past few months.
Yesterday, ADA again faced a key resistance point around the $1.2 level, and this Monday it finally managed to break through the average price of the last 20 days. As of press time, Cardano’
s cryptocurrency is priced at USD $1.34.
Cardano will hit the mainstream
This year, the Cardano
project has made considerable progress in its technological development, which has attracted a lot of interest from investors. The widespread sentiment of optimism for the platform’s potential is reflected in ADA’s performance, which has risen nearly 600% since the beginning of the year.
In the midst of a pro
As a multi-stage upgrade process that will eventually deploy smart contract functionality in the long term, I expect the growth of tokens as well as the growth of the digital currencies will continue to grow. CardanoIn the past few years, there have been more than a few who have estimated that it can Blockchain can conquer significant ground in the industry, positioning itself as one of the main rivals of Ethereum.
Among them, Amy Arnott, the portfolio manager at U.S. financial services firm Morningstar, is the latest to share an optimistic forecast for. Cardano. In an interview with Business Insider, Arnott highlighted her view that ADA could go mainstream by becoming one of the three biggest cryptocurrencies after . Bitcoin (BTC) and Ethereum (ETH).
During the discussion, which also touched on the regulation of cryptocurrencies, ETFs and the merits of Ethereumcryptocurrencies, the strategist indicated that the multiple potential applications of cryptocurrencies could generate interest among institutional investors. Cardano could generate interest among institutional investors.
“The interesting thing that happened over the last year is that institutional investors have been much more willing to embrace cryptocurrencies and see them as an investment asset . Asthat trend continues, we will see other cryptocurrencies become more mainstream,” he added.
Long-term potential: a bullish horizon?
The Morningstar strategist’s comments come just days after 40-year-old financial research firm InvestorPlace endorsed the purchase of . Cardano. In an article last week, the firm recommended investors keep ADA in their wallets as a long-term investment.
“As digital currencies and especially Blockchain technology become more widely used, I expect the growth in tokens as aADA continues,” the company wrote in anticipation of a price increase for the coin as the platform becomes a growing hub for DeFi and DApps. Cardano becomes a growing hub for DeFi and DApps.
Now, with the Amazon tech giant working to incorporate Bitcoin and other cryptocurrencies, including Cardano, among its payment mechanisms, it’s possible that the fifth largest asset could see a price increase in the future; especially if the market’s uptrend continues.
For now, the next important price high for ADA would be USD $1.5; if it manages to break that barrier, we may see the cryptocurrency break a new price high later this year.
Version by Hannah Estefania Perez / BitcoinDaily
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