It’s said you can only call a top or bottom once. Today, with one box checked and as it relates to blink-and-you-missed-it Cardano (CCC:ADA-USD) and ADA coin investors, it could be nearly time to back up the truck on value and a very meaningful low. Let me explain.
Bitcoin (CCC:BTC-USD). Ethereum (CCC:ETH-USD). Dogecoin (CCC:DOGE-USD). Two out of three are recognized as the crypto market’s largest digital assets. And for good reasons, as most any investor with their pulse on the market knows. In fact, dizzying financial coverage on BTC and ETH informs us daily of how important those two digital assets are.
Whatever happened to breaking news in Apple (NASDAQ:AAPL) lighting a fire under Wall Street?
And the other crypto garnering its share of attention? Until this week, Dogecoin embodied the worst sort of speculative excesses in this evolving and important market courtesy of celebrity and meme-driven FOMO. Thank Tesla’s (NASDAQ:TSLA) Elon Musk and 2021’s new cadre of swing-from-the-fences Redditors.
Cardano and the Market
To be fair there are other joke coins out there other than DOGE. It’s the Wild West as investors chase a proliferation of snake oil-like alt coins with promotors or umm, programmers all too happy to give ‘em what they want. In fact, today the insatiable craving has helped launch more than 9,000 alt coins. But the crypto market is more than about BTC and ETH versus all the rest.
Today, there is a third coin to consider as the real deal. Enter Cardano’s ADA.
Created in 2017 by one of Ethereum’s co-founders, ADA has the built-in kind of pedigree a second company created by Microsoft’s (NASDAQ:MSFT) Bill Gates or Tesla’s Elon Musk would deserve. But Cardano’s real merit lays in what it brings to the table. And that’s the platform’s open-source, proof-of-stake blockchain.
Cardano’s technology is simply faster and less energy intensive than its competition. And whether it’s being used to guard against counterfeit retail goods or allow agriculture companies to track produce from the seed to your stomach, it may not be sexy, but it’s extremely important.
News on the Horizon
As well, if investors want the glitz, glamour and headlines, today and similar to ETH, ADA’s utility value has good news on the horizon.
Cardano is moving into the emerging non-fungible token (NFT) market. NFTs are unique, digital properties comprised of video, audio and other files stored on the digital-ledger Ethereum technology. It’s akin to digital art.
Importantly and without judging others taste and values, understand some NFTs have already changed hands, digitally of course, for tens of millions of dollars.
Furthermore, NFTs are truly becoming even larger big-league stuff, figuratively and literally. The NBA is already hawking digital trading cards. Online auction giant eBay (NASDAQ:EBAY) is serious about muscling in on the action. Even the New York Stock Exchange is creating NFTs celebrating historic IPOs and direct listings.
Cardano and U.S. Dollar Weekly Price Chart
Source: Charts by TradingView
Ok, so how do I get my hands on Cardano? You may try Coinbase (NYSE:COIN). But before you plunk down any USD’s for the alt coin, it may prove equally smart business to appreciate ADA’s price chart and take ownership.
In ADA and much like other cryptos, the over-the-top volatility is enough to make fools and gods of both bulls, bears and both on a daily basis. This isn’t your granddaddy’s Coca-Cola (NYSE:KO) stock. To that end, over the past two trading weeks, the token climbed upward of 60% to hit just over $2.50. I’ll take a deserved hat tip. I did call the top in ADA coin, well kinda sorta, in early March with shares fetching about $1.12.
Not that getting from A to B or rather from March’s levels to the recent high was easy. It was far from linear. What’s more and today or rather this week, a broader crypto unraveling with blameful fingers pointed at Chinese regulators sent ADA plunging into a test of trendline and Fibonacci support near $1. And today, specifically? Let’s just say the bulls have forcefully countered.
Currently and in Thursday’s session of price discovery, the Cardano token is up about 20%. It almost evokes a “ho-hum” reaction. Appreciatively though, the gain follows yesterday’s abrupt 50% moonshot off a successful challenge of the dollar level. And that’s a ton of volatility, even for ADA.
“They” of course knew it would hold. But yesterday’s achievement is ancient history and hindsight far removed from what traders collectively see in ADA right now. Intraday, that’s somewhere in the vicinity of $1.75 or more specifically, $1.7653423429 for the Redditors responsible for keeping the action real and surreal.
Bottom or rather, in appreciating the squiggly price line, I’d simply advise not risking more than you can afford to lose in buying the Cardano coin. And if you’re like me, rather than the overwhelming “them” responsible for ADA’s daily and theatrical escapades, waiting for an interminably long weekly candlestick to navigate today’s tug-o-war around an obviously important, but wide expanse of ADA prices, makes calculated sense in our book.