DailyCoin Cardano Regular: IOG Drama, Mithril Mainnet, Bullish Recovery

The Bulls have taken over Cardano, turning all signals are green, but for how long?

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  • The Bulls have taken over Cardano, helping it push through pivotal resistances and register double gains. 
  • Investors are bullish as Cardano finds recognition on various fronts. 
  • The following weeks are crucial for Cardano as it eyes new targets while lining up major updates. 

Bulls are once again in control as Cardano (ADA), among other altcoins, registered massive gains following Ripples’ (XRP) pivotal win against the SEC. With ADA showing more strength than ever, investors are abuzz with anticipation for a bullish summer. 

To provide insights into these exciting developments, we present our Bi-Weekly DailyCoin Regular on Cardano from our expert, Insha Zia

News and Events: Understanding Impacts

Cardano Bulls Triumph Over Bears: Reclaim Critical Support

Cardano price chart.
Cardano price chart. Source: CoinMarketCap.

After weeks of consolidation, Cardano Bulls and the XRP-led altcoin rally gave ADA the much-needed push to propel it past resistance at $0.3. Last week, Cardano recorded an impressive 32% gain and fully recovered from the SEC’s attack. The upward movement has sparked hopes of a sustained bullish trend for ADA, with its sights set on liquidity at $0.38. 

Cardano DeFi Breaks into Top 15 Rankings Following Altcoin Rally

Defi tvl rankings.
Defi TVL rankings. Source: DefiLlama.

Cardano’s DeFi ecosystem has been on an upward trend for quite some time now, consistently reaching new all-time highs in terms of ADA. However, while its DeFi TVL, in terms of ADA, has thrived, its growth in dollar value has been relatively limited. 

With Cardano’s ADA exploding through its resistance in the XRP-led altcoin rally, its DeFi TVL surged by 29% to achieve an impressive year-to-date high of $200 million and record a 300% growth this year. This led to Cardano jumping four spots in the ranking to secure the 14th spot, surpassing the likes of Bitcoin and Fusion. 

Cardano Among Top Holdings in Hong Kong

Despite facing regulatory challenges in the US, Cardano is attracting massive liquidity from other parts of the world, especially Hong Kong, whose investors remain very bullish on the POS chain’s long-term prospects. 

HKVAC report.
A snippet from HKVAC’s crypto index report. Source: HKVAC.

According to the Hong Kong Virtual Asset Consortium’s (HKVAC) Crypto Index, Cardano held a notable position among top holdings in the index with a weight of 2.77%, placing ADA alongside renowned tokens like Bitcoin, Ethereum, USD Coin, Ripple, and Tether.

The inclusion of Cardano in the HKVAC Crypto Index is a significant achievement, as it recognizes the increasing adoption and demand for ADA. 

Cardano’s IOG Accused of Stealing Treasury Funds

IOG, the company behind Cardano, has put forward a proposal requesting 2.14 million ADA, or approximately $700,000, to ensure Project Catalyst runs smoothly. The team promises to enhance the accelerator’s infrastructure and provide deliverables such as progress reports, evaluations, and more. 

However, IOG’s proposal sparked controversy within the community, with some members accusing the company of seeking to misappropriate treasury funds and questioning the company’s intentions in running a “community-funded” accelerator program.

In response to the growing concerns, Daniel Ribar, IOG’s Product Manager, addressed the allegations and provided reasons for the funding request. Despite his explanation, the community members remain skeptical, and the issue continues to be scrutinized. 

Current Outlook

At the time of writing, Cardano exchanged hands at $0.32, exhibiting remarkable growth in its price compared to two weeks ago. Despite still being 15% under its June High of $0.38, its recovery from the SEC’s security classifications has instilled in investors a fresh wave of optimism.

Cardano price chart.
Cardano price chart. Source: CoinMarketCap.

As Cardano gathers momentum for another leg up, experts and investors hope it will reach $0.38 in the following weeks. However, it all hinges on the Bulls’ ability to hold the $0.315 support. Should they fail, the Bears will reclaim control and drive ADA’s price to $0.3 or even $0.25. 

Community Sentiment

Cardano’s recent performance has given rise to fierce competition for dominance between the Bears and the Bulls. While investor sentiment remained bearish at press time, according to IntotheBlock data, it’s worth noting that traders were very bullish over the past two weeks. 

Cardano investor sentiment.
Investor sentiment. Source: Intotheblock

Cardano’s long-to-short ratio has flipped from negative to positive since the last DailyCoin regular, signaling a considerable surge in investor interest. Additionally, with open interest in ADA futures at an impressive $136 million, investors are more confident in ADA’s growth and performance.

What To Look Out For

Cardano has a lot of updates in store for the upcoming weeks, including the highly anticipated Mithril Update set to launch on the mainnet this summer. The upgrade aims to make Cardano more efficient and streamlined by enabling the bootstrapping of full Cardano nodes, opening up new avenues for governance, network participation, and DApps.

Besides Mithril, Cardano is also collaborating with the University of Edinburgh on the Edinburgh Decentralization Index (EDI), a metric that utilizes various coefficients such as the Herfindahl-Hirschman, Gini, and Nakamoto coefficients to assess a blockchain project’s level of decentralization. 

Once published, this index could provide valuable insights for policy-makers to formulate informed regulations and differentiate between cryptocurrencies as either commodities or protocols based on their decentralization. 

Apart from these developments, investors are eagerly watching ADA’s price action to see if it will successfully retest $0.38. A clear confirmation could trigger a massive rally toward the liquidity at $0.6, paving the way for Cardano’s ascent to the coveted $1 mark. For that to happen, ADA needs to stay above $0.31. 

At the time of writing, Cardano stood at $0.32, boasting a trading volume of $225 million and a market cap of $11 billion. 

On The Flipside

  • It’s worth noting that ADA is 90% down from its all-time high of $3.1 at press time.
  • Market dynamics can be unpredictable, so it is important to consider alternative perspectives and opinions when evaluating the potential future performance of ADA.
  • The recent surge helped Cardano reclaim its ranking. Solana briefly flipped Cardano in total market cap rankings, clinching the 7th spot. 
  • The XRP-led altcoin rally sparked a wave of liquidations throughout the market, amounting to over $314 million, three times as much as when the SEC sued Binance and Coinbase. 

Why This Matters

Cardano is on the brink of a pivotal juncture that could impact its performance for the rest of the year. The upcoming weeks will play a decisive role in determining ADA’s direction. As investors and enthusiasts closely watch its moves, Cardano must gather as much momentum as possible to reach the $1 mark. 

More on Cardano:

How Cardano’s Mithril Evolves Nodes and Catalyzes Growth

Read the last DailyCoin regular: 

DailyCoin Bitcoin Regular: Resistance Breakthrough? Market Frenzy and Weekly Options 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.