Cardano on a comeback? Why one analyst thinks it has bottomed
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Cryptos have been stuck in a range for six weeks now – but one Aussie analyst says traders shouldn’t get discouraged.
Perth-based Think Markets analyst Carl Capolingua told Ausbiz this morning that “if you’ve been playing crypto for anything more than five minutes, you know it goes through periods of years of very low interest and very little price movement — and then, bang, it’s all on again and it’s happening.
“So I think we’re in that phase. Don’t be disheartened … there are still very interesting little plays out there that are gaining increasing traction.”
Capolingua mentioned Terra (LUNA), which this morning was trading at US$85.912, down 2.4 per cent from yesterday. The stablecoin platform has dipped after hitting an all-time high of $104 last week, but overall has had a good run recently.
“That has been rocketing up the TVL (total value locked) charts, a measure of how much DeFi’s on the platform,” Capolingua said.
Indeed, Terra now has a 10.7 per cent share of the DeFi market, according to DeFi Llama, up from 5.8 per cent at the start of the year. It’s jumped past Binance Smart Chain to become the second most popular DeFi protocol by TVL, behind Ethereum.
Capolingua also mentioned one of his favourite tokens, Cardano, which on Friday was up 4.7 per cent to US83.9c.
In terms of TVL, Cardano has just a 0.14 per cent market share, at $226 million – but that’s up 78 per cent in the past month, according to DeFi Llama figures.
“It’s taken so long to get some of these projects happening, to attract some of that DeFi, but it’s starting to creep up – it is sneaking up that chart as well, finally,” Capolingua said.
There is a massive amount of Cardano holders who are silently out there.
Just watching. Just waiting. 🚀$ADA
— Dan Gambardello (@cryptorecruitr) March 14, 2022
“A big reason for Cardano’s decline has been the gap between the hype, and actually the adoption of getting DeFi into the space,” Capolingua continued.
“So that’s be my tip – keep an eye on it, I think maybe it has bottomed.”
Bitcoin meanwhile was down 1.0 per cent to US$40,500.
“We are sideways, I have said $45,867 is the only thing that would get me into this market,” Capolingua said.
“Can you buy now, can you nibble on it? I think if you’re a real risk-taker, you can nibble on it in advance, because the candles are telling me that we are probably building more to a breakout than a breakdown — but very very small bets. Above $45,867, I think you can move in.”
Overall the crypto market stood at $1.9 trillion, down 0.3 per cent in the past 24 hours, according to Coingecko.
Coingecko listed relatively obscure DeFi platform Xido Finance as the biggest gainer in the top 100 with a 132 per cent pump.
PancakeSwap, Celo and Mina Protocol were all up by double-digits as well – between 16 and 11 per cent.
The Graph was the biggest loser, falling 9.0 per cent.
Among the top 10 coins, Avalanche was the biggest mover, rising 6.4 per cent to $80.