After two weeks of experiencing minor improvements, Cardano (ADA) has started to show signs of life. This is good news for investors as the cryptocurrency can finally catch up with Ethereum. However, it still needs to work harder to reach its goal of becoming one of the top 10 cryptocurrencies. ADA is currently trading at around $0.48. It has gained 5% in just seven days, and it requires a lot of support to move beyond the $4 mark.
Can Cardano Surpass Ethereum?
Despite its relatively small size, Cardano is still one of the most prominent blockchain networks in the world. Its native coin, ADA, is also among the top 10 cryptocurrencies.
According to Nomics, the market cap of ADA is around $16.21 billion, while that of ETH is around $147.93 billion. ADA accounts for about 10% of Ethereum’s market capitalization.
To maintain its position as the second-largest cryptocurrency, Cardano needs to increase its market valuation by around 9.25x. If it gains at the same rate as Ethereum, it would be worth about $4, which is a gain of over 800 percent.
Over the past week, the price of Ethereum has gained 13%. According to data from Coingecko, the daily trading volume for the cryptocurrency is more than $13,928,520,299. Meanwhile, the daily trading volume of ADA is almost $799 million. It’s down 79% from its peak of over $3.09 nearly ten months ago.
Cardano Sharks Buying
Notably, addresses holding between 10,000 and 100,000 ADA, also called “sharks,” have added 79.1 million tokens (~ $37.7 million as of July 9) to their reserves since June 9, according to data from Santiment.
Since the large number of whales that hold ADA has stopped selling, the future of the token is in doubt. Having a large amount of ADA makes these two powerful enough to influence the future trends of cryptocurrency.
The recent buying frenzy among the Cardano sharks suggests they are positioning themselves for a price recovery. As the price of ADA has dropped 85% from its September 2021 high, investors are starting to realize that the price could be heading higher.
Another potential bullish catalyst for cryptocurrency is the upcoming technical upgrade, which could happen at the end of this month. The move is coming after a successful testnet on July 4. The upcoming hard fork, Vasil, will allow users to create and manage more complex blocks. It will also improve the scalability of the platform’s decentralized applications.
Despite the positive sentiment surrounding Cardano’s whales and sharks, technical indicators suggest that the bull market may be in trouble. For instance, the price of ADA has been forming a descending triangle pattern since May 8.
The price of the Cardano token could fall to as low as $0.31 if its descending triangle continues to break out. This technical pattern usually happens after the price breaks out from its previous trend.
Ethereum Price Tries to Recover
Since ETH broke its previous resistance level multiple times, the Ethereum price has failed to move past it. This rejection might trigger a stronger bounce and push it higher. The price of Ethereum rose from $878 to $1,284 from June 18 to 26, and this range continued to exist. However, it was rejected at the $1,284 level before ETH formed the range.
The price of Ethereum fell on July 8, triggering a short-term decline. If Bitcoin price continues to rise, then the price of Ethereum will also follow suit. It would cause it to test the $1,284 resistance level and then the $1,425 mark.