A closely followed financial analyst says Cardano (ADA) is deviating from other crypto assets as the price of the altcoin surges.
In a new video, the host of financial education YouTube channel InvestAnswers says the upcoming rollout of the Vasil hard fork this month is driving ADA’s current rally.
“It always rallies before hard forks. It’s pretty obvious that the spike right now is due to the Vasil hard fork, which has supposedly a lot of great stuff coming: a lot more scalability in terms of TPS [transactions per second], a lot more smart contract functionality, a lot more DeFi [decentralized finance] capabilities, etc.”
He says network upgrades are historically bullish for ADA.
“If you look back at history, you can see back to the Shelley hard fork in July 2020, Cardano went up 500% and that was, I think, Mary in March 2021, it went up 1,100%. It was a big move up to that hard fork while the most recent Alonzo update saw the DeFi asset rise about 135% and reach an all-time high of $2.96.”
Cardano surged to $0.63 on June 1st, its highest since plunging to a low of $0.42 in May. The analyst says that the altcoin may not have broken its previous highs, but the price movement suggests that ADA is decoupling from other digital assets.
“We’re currently around $0.65, something like that, so it hasn’t been smashed down but it is deviating and becoming uncorrelated from the other assets. If you look at Cardano/Ethereum pair (ADA/ETH), Cardano/Bitcoin pair (ADA/BTC), etc., it is really breaking out, so we’ll watch this very carefully.”
With its recent rally, Cardano upstaged XRP to become the sixth-largest crypto asset by market cap for a brief period of time before returning to the seventh-ranked position. At time of writing, Cardano is trading for $0.55, down by 12.5% over the last 24 hours.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/iurii