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Cardano’s $35 Billion Market Cap Is Not Justified, Says Ethereum Proponent

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Cardano’s current market valuation isn’t justified as it doesn’t even have smart contracts, believes a well-known Ethereum proponent.

Cardano (ADA) is once again in the spotlight as its price fails to follow the current downtrend in the cryptocurrency market. In fact, ADA is currently up on almost all time frames, and it has managed to once again claim the third spot in terms of market capitalization.

However, Anthony Sassano, one of Ethereum’s well-known proponents and investors, is of the opinion that it doesn’t have the fundamentals to be valued at 25% of Ethereum’s total capitalization.

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Cardano (ADA) Bulls Don’t Stop

As CryptoPotato reported, this week has been somewhat tough in the cryptocurrency market. Bitcoin, as well as the majority of coins, are in the red, and this includes Ethereum. ETH is down more than 20% over the past seven days.

Cardano, on the other hand, shows no signs of slowing down. At the time of this writing, the cryptocurrency is in the green on every time frame, according to data from CoinGecko, for a total weekly increase of almost 30%.

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ADA/USD. Source: TradingView

As seen in the above chart, ADA has managed to recover from the recent correction in a brilliant manner and is already trading above the level from which it broke down.

This has made it the third-largest cryptocurrency by means of total market capitalization, as ADA’s share is now valued at $35 billion. This means that its market cap is currently worth around 21% relative to that of Ethereum.

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Ethereum Proponent Says ADA’s Valuation Isn’t Justified

While ADA bulls rejoice, some fail to see the merits in the current market structure and valuation. According to Anthony Sassano, this is a clear example of why the cryptocurrency market runs on narratives more so than it does on fundamentals.

The fact that Cardano, a platform that doesn’t have smart contracts, is worth $35 bil based purely on narrative & promises is the perfect example of why crypto runs on 99% narratives, 1% fundamentals.

Even worse, the market is saying that Cardano is worth 25% of Ethereum…

Many in the comments are of the consensus that retail investors are what drive the price of ADA up. There could be some merit to this, especially given the most recent developments.

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Just a few days ago, Gene Simmons, the legendary bassist of the band KISS, revealed that he had purchased $300,000 of the cryptocurrency on the grounds that “cryptocurrencies like Bitcoin […] are beyond the reach of most people. […] I like ADA because anyone can invest.”

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Cardano Price Prediction: ADA ready to explode to $4

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  • Cardano price returns to bullish conditions, denying further sell-side control
  • An imminent breakout towards new all-time highs is likely.
  • Little resistance ahead, but bulls should remain wary.

Cardano price has failed to capitalize on the movement generated by its closest peers, Bitcoin and Ethereum. As a result, very tight and challenging trading ranges have been the norm for Cardano, but that may change here soon.

Cardano price targets a breakout above $2.45

Cardano price has a very bullish set up on its $0.05/3-box reversal Point and Figure chart. If a new column of Xs forms and hits the $2.45 entry, three things happen simultaneously. First, a double-top is broken, confirming an entry signal. Second, the entry confirms a complete Bear Trap Point and Figure pattern. Finally, the entry at $2.45 is a breakout above the dominant bear market angle.

The breakout could be the very beginning of a new bullish expansion phase for Cardano price. The initial target on the breakout is based on the horizontal profit target method in Point and Figure analysis. $4.05 is the initial range and would be a new all-time high.

However, the current trading conditions still have a significant bearish weight. Therefore, Cardano price must remain above the $2.05 value area. If it fails to hold $2.05 as support, a return to the $1.80 trading range is likely.

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ADA/USD $0.05/3-box Point and Figure Chart

Bulls should also be aware of some resistance on any breakout near the prior swing high and high volume node at $2.80. While the momentum of the breakout may make any near-term resistance moot, $2.80 has been a consistent source of trouble for Cardano, and it would certainly be odd for it not to provide some resistance in the future.

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Cardano Price Analysis: ADA/USD set to surpass the intraday highs of $2.3

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  • Cardano price analysis is bullish today.
  • The ADA/USD pair formed a lower low yesterday.
  • Today we expect to see Cardano’s value rebound somewhat.

Today’s Cardano price analysis is bullish, as a new lower low was formed following a substantial decline over the previous 24 hours. As a result, ADA/USD should recover some of its losses later today as bears run out of steam, according to our predictions.

Cardano price movement in the last 24 hours: Cardano faces stiff resistance at $2.2

Over the last 24 hours, ADA has traded in a range of $2.178-$2.198, with considerable swings from one day to the next. The volume is up by 27.43 percent and stands at $2.78 billion. In comparison, the overall market cap is valued at about $70 billion, placing Cardano in third place among all cryptocurrencies by market cap.

ADA/USD 4-hour chart: ADA set to reverse today?

On the hourly chart, after a significant drop, bears are weary, with Cardano’s price starting to reverse. The RSI is climbing, implying that the price will continue to rise. The current resistance level for Cardano is $2.2, which was established by a lower high.

The RSI is climbing, and the price should follow suit as no technical factors suggest otherwise. ADA/USD will rise if bulls break through the $2.22 resistance level.

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Cardano Price Analysis: ADA/USD set to surpass the intraday highs of $2.3 1

ADA/USD 4-hour chart. Source: TradingView

On the 4-hour chart, we can see that after a substantial fall, bears are weary, with Cardano’s price starting to reverse. RSI is moving up, suggesting that the price will continue to rise. The coin’s current resistance level is at $2.2, formed by a lower high.

The RSI is moving up, and the price should continue to follow, as no technical factors suggest otherwise. If bulls manage to break through the resistance level of $2.22, then ADA/USD will rally towards its next resistance level at $2.4 – $2.45 – $2.5.

After establishing two lower highs above $2 in early October, Cardano hit a new downside high of $2.30 in mid-October, followed by the current range of $2.178-$2.198. Here we’re likely to see a decisive break – either down or up – and we might anticipate temporary bearish momentum, as seen on the 4-hour chart, before ADA/USD recovers and starts gaining ground again.

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Over the next 24 hours, the Cardano price is expected to recover some of its losses. We might anticipate bearish momentum to continue throughout this week if a lower high is hit.

Cardano Price Analysis: Conclusion 

From a long-term perspective, this still looks like an excellent time to invest in Cardano.

Looking at the 4-hour chart, we can conclude that ADA is following an overall bullish trend. However, with RSI moving up and establishing a higher low at $2.178, this might be the beginning of a more extensive recovery.

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ADA Price Seems to be Stuck While Cardano Eco-system Is Blooming !

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Over the last 24 hours, the entire market has had mixed results. Cardano’s price has been extremely stable over the last four daily sessions. The price of ADA has been rapidly growing this year, with an increase of 1426 percent. Its current price per ADA coin is $2.20,, and its total market value is close to 70 billion dollars. 

For the past few weeks, the Cardano price has been stuck in a tight range, but it’s finally exhibiting signs of life. The price of the coin is now about $2.20. That should continue to climb as long as there are no major swings or occurrences that could cause it to fall in value.

For weeks, the price of Cardano has been drifting sideways. Following a higher low over $2, a lower high of $2.30 was reached in early October, indicating consolidation in a narrower range. 

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As a result, there is a chance that the coin will break out in the near future. The coin will break out in either direction because this is a symmetrical triangle. The resistance at $2.5 and the support at $2.0 will be critical levels to watch. 

Ben Armstrong, a.k.a. @Bitboy Crypto, believes the ADA price cycle is the most parabolic ever, and has set a $15-$20 end-of-year target in a tweet.

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Cardano Eco-system

On the fundamentals front, the Cardano ecosystem is becoming increasingly busy, with a wide range of projects preparing to debut. RavenDex is one such project, a decentralised exchange that has sold more than 60% of its tokens to early adopters in a private sale round and plans to deploy a fully functional system before the end of the year.

During the previous session, Derived, another DeFi project, launched its IDO. Derived is a multi-chain synthetics asset trading platform built on Cardano that will also enable cross-chain services across other leading blockchain networks including Ethereum, Polkadot, Avalanche, and Binance Smart Chain. 

Cardano is gaining traction across the board, not just in the DeFi space. Over the last several weeks, the blockchain has begun to support NFTs, allowing users to mint and sell NFTs without the requirement for a smart contract address. One such venture, SpaceBudz, just reported the successful completion of its first Cardano-based NFT sale, which surpassed $1 million, setting a new high for the network.

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