Cardano is expected to surpass XRP in 2021, as it sits at No. 6 on the rankings and has yet to reach its all-time high. Grayscale is reportedly targeting Cardano for a trust, and a big event is expected in February that should bring more liquidity to the cryptocurrency’s asset. Technical charts also indicate a potential 8X increase for Cardano, which puts it at $3.20. Furthermore, large transactions have significantly increased due to the flow of money in cryptocurrency running from Bitcoin to Ethereum and down to major caps like Cardano. The Goguen phase of Cardano’s technology roadmap includes native tokens, which will contribute to better compatibility and fewer issues with gas fees.
Cardano in 2021: A Look at the Fundamentals, Technicals, and Technology
Fundamentals: The Grayscale News and a Major Event
Cardano is currently ranked at number six on the cryptocurrency rankings. However, it is expected to surpass XRP since XRP is going backwards due to the SEC lawsuit against it. The top two coins, Bitcoin and Ethereum, have already set all-time highs. Ethereum went from $300 to $1700 in just a few months, and we haven’t even got to the silly part of this crypto bull run yet. Cardano, on the other hand, has not yet hit its all-time highs.
One major event coming up for Cardano is the Mary hard fork. However, the focus is on the two-fold fundamental aspects of Cardano. First, there’s the Grayscale news, which is expected to be a Grayscale ADA trust addition. The second major fundamental event is unknown, but it’s expected to be a large exchange listing or a new fiat on-ramp.
Technicals: Head and Shoulders, New Wallets, and Large Transactions
The recent head and shoulders pattern that appeared on the charts for ADA usually means bearish action. However, it recently broke out of the pattern to the upside. By measuring different aspects of the pattern between the head and the neck line, the technicals are pointing to an upside target of around an 8X from here.
There’s also been a huge rush of new wallets created for ADA. But the metric to focus on here is the drastic increase in large transactions. The flow of money in crypto runs from BTC to ETH and down to major caps, which is where we currently are. Almost all of the money that has ever entered into Bitcoin and Ethereum was in profit yesterday. This profit has to go somewhere, and the beneficiaries of this right now are DOT and ADA.
Technology: The Goguen Phase and Native Tokens
The roadmap for Cardano is now in the Goguen phase, which includes native tokens. These native tokens are basically the ERC-20s of Cardano, which will lead to better compatibility. Ethereum tokens are built on top of the blockchain, but Cardano native tokens are constructed inside the ledger itself. The Cardano community is huge and highly engaged, and tokens launched on the Cardano blockchain will have a leg up towards success.
Price Prediction for Cardano in 2021
Cardano is expected to challenge or break its all-time high by the end of February, in the opinion of many experts. The history of Cardano in 2017 showed us the upside of Cardano when it reached $1.22. That’s a 3X from where it currently stands. BTC and ETH have already hit all-time highs, but XRP is going backwards. Meanwhile, Cardano is clear for takeoff to run straight to all-time highs.