After the huge run-up in late March, the market seems to be easing up again. In spite of this, Bitcoin (BTC) seems to be holding up above $5000, a good indicator that a major run up in price could still be underway. However, even if the market trades sideways all through this quarter, there are certain altcoins that have the potential to give superior returns, irrespective of where the market goes. Litecoin (LTC) and a few others did it in Q1 and anyone who caught that wave made a good amount of money. One altcoin that offers a good chance at superior returns this quarter is Cardano (ADA).
One of the reasons why Cardano could give superior returns this quarter is the Shelley release. Shelley will be gradual, but so far the market has shown tremendous interest in it. This means that once major milestones around it are met, Cardano could easily be moon-bound on the basis of FOMO. One trigger to this will be Cardano staking, which is a significant aspect to Shelley. Cardano staking has been making headlines for months, an indicator of the anticipation.
Once it is announced, the rush to buy to buy ADA could be huge since one can stake as low as 1 ADA. This potential rush by investors could see Cardano (ADA) rise by a huge percentage, regardless of the market direction. There are pointers to such price action of Cardano (ADA). While most altcoins that pumped towards the end of March are retracing heavily, Cardano has held steady. For instance, in the last 24-hours when most altcoins have retraced by upwards of 10%, Cardano is only down by single digits and seems to be holding steady. That’s a good indicator that there is some solid buying pressure supporting the price.
The best part is that, investors can bank on the IOHK team to deliver on Shelley, as promised. This is a team that has never been driven by the need to pump the price. They have postponed Shelley a number of times before, just to get things right. That was in the heat of the bear market in 2018, when such announcements were bound to tank the price. To them, the most important thing is getting things right. As such, now that they have been very clear about Shelley, chances are that they are way deep into the process.
In essence, betting on Cardano (ADA) at current prices makes lots of sense. Nonetheless, from a technical analysis perspective, it makes sense to wait for a clear break above $0.10. This could be an area of major resistance in the short-term. Once it pushes above this level, Shelley driven FOMO could see Cardano make significant gains, relative to the rest of the market. Not only is it a good bet in the short-term, it also makes sense to hold it in the long-run. This is the one platform that could dominate the Dapps market on the basis of its scalability, and security.