Will ADA achieve this target price?

ADA, the fourth largest cryptocurrency in the market, has had turbulent weeks with altcoins collapsing along with Bitcoin and ETH after hitting ATH levels. Interestingly, despite recent ecosystem-oriented developments such as the introduction of the Alonzo test network, the ADA’s fortunes may have been tied to the activity level of BTC and ETH.

However, based on recent gains, it appears that ADA will gain more with or without the collaboration of the world’s largest cryptocurrencies.

index Fear and greed are perhaps the best explanation for the prevailing downtrend in the larger market. The evidence is that the index is 20 – extreme fear of less than 24 hours. Similar values ​​were last observed continuously in March – April 2020.

In particular, the world’s largest cryptocurrency Bitcoin has struggled so far. Indeed, after analysis recently from renowned analyst Michael Van De Poppe on the daily timeframe:

“We are still in a support area for Bitcoin. However, the price is making lower highs and lower lows, which means that the trend is still down. “

Poppe also added that there are some signs in the lower timeframe that a temporary top might be on the way soon.

What about ADA? Well, as noted, the past few days have been very bullish for ADA, up almost 25% in 2 days.

ADA / USD | Source: TradingView

Additionally, unlike the Bitcoin chart results, ADA has posted a higher low since February, the analyst added:

“Price has now built up that compression zone, so maybe we should see more sideways movement. If we continue to move towards the $ 1.80 resistance area, I think I’ll test those highs again. “

This could be a bullish trend for ADA, the analyst said. Poppe also uses the ADA / BTC chart to express his point of view. The famous trader suggested that a breach of the above levels could be crucial in creating the $ 3.35 and $ 5 target zones with the Fibonacci extension.

The target levels of $ 3.35 and $ 5 will indicate strong upward moves for ADA. However, apart from the chart analysis, are these values ​​unlikely? According to Real Vision’s Raoul Pal, the answer is yes, with the analyst recently comment:

“I don’t know if Cardano will work or Polkadot will go live and be adopted so I don’t bet on it. I only bet on a couple of them and found that if we were in altcoin season they would go up 5x against ETH.

Despite recent counterexamples, altcoins like ADA move independently of Bitcoin. This “split” narrative has intensified in recent weeks and months, especially as ADA continues to rise and BTC stagnates. The same was hinted at by IOHK’s Charles Hoskinson in a recently released video. Founder of Cardano proposals The:

“We are now in a bitcoin decoupling situation and people are starting to see that while this is a great experiment, it is not all.”

Ultimately, as noted in previous articles, there are more natural reasons why ADA could go high. Cardano is developing according to plan and plans to introduce smart contracts through the Alonzo upgrade. The ERC-20 token converter is also approaching the testnet implementation phase.

Here, too, the success of ADA staking is worth mentioning. At the time of writing, more than 70% of ADA’s $ 39.63 billion offering is being staked. For example, octopus saw its customers invest over $ 500 million within a week of launching the feature.

Therefore, a target price of $ 5 for ADA doesn’t seem impossible, at least in the long run.

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