It’s good news for the Cardano network: The latest figures show that the blockchain is becoming more established and growing in the large futures market of non-negotiable tokens (NFTs). According to an analysis by StockWits, Cardano is one of the top 3 NFT networks in the crypto sector. If you look at the trading volume with NFTs, only Ethereum and Solana can currently post even higher volumes.
Popular NFTs on the Cardano blockchain
In addition to the technological aspects of the blockchain, the quality of the NFTs traded on the market should be a key driver of Cardano’s growth. Because many pieces of NFT art are of great interest to collectors. The most famous NFTs based on the Cardano blockchain include The Ape Society, Mutant NFTs, DerpBirds and ClayMates. This means that in October alone there was a trading volume of around 200 million US dollars with NFTs on Cardano.
These numbers are particularly noteworthy because the large market for unmixed signals that occurred last year has decreased significantly. This can be illustrated by the volume of trading on the Open Sea, the world’s main NFT market. According to a survey by Dune Analytics, this literally fell. Accordingly, the trade volume in the 3rd quarter of 2022 fell by 60 percent compared to the 2nd quarter from April to June.
👻 Some people say it’s a ghost chain… but don’t let a bunch of scary stats dispel the myth! 😱
— Cardano Foundation (@Cardano_CF) October 31, 2022
Cardano rises against the trend: the interest in NFTs decreases
In September alone, the trade volume on the Open Sea was below $350 million. This is nothing compared to the great boom that was still visible at the beginning of the year. At that time, the trade volume was about 15 times higher and amounted to almost 6 billion dollars.
Under these signs, the current level of NFT trading on Cardano is even more important. The transaction volume, currently measured on Cardano, is also positive. The network recently recorded around 100,000 transactions per day, which is significantly higher than in previous months. The daily active addresses in the blockchain are also continuously increasing and currently stand at 67,000.
However, it is disappointing in the area of decentralized finance. Figures from StockWits also show that the trading volume locked on the blockchain, known as Total Locked Volume (TVL), has recently fallen by 20 percent and remains at 69 million US dollars.
Experts see technological advancements as a key factor in the increased adoption of Cardano as an NFT blockchain. Vasil Cardano’s recent upgrade increased the network’s capacity and accelerated transaction times.
Cardano is going to be a blockchain network
But this seems to be just the beginning of many technological developments for the future, as Cardano founder Charles Hoskinson recently explained. As The Daily Hold Hoskinson stated, “Cardano will eventually be a network of blockchains, so it won’t just be just Cardano, but if you think about the sidechain side of things, there could be many, maybe hundreds of sidechains, running . in parallel and all tuned to things in the Pacific Ocean. So it’s like ‘The Borg’ going around absorbing technology, every sidechain is a blockchain partnership and blockchain.”
However, the price of ADA, Cardano’s native token, has hardly benefited from these big announcements and the good news about the use of NFT. Although the price has risen from its low for the year of around USD 0.33 on October 21 to USD 0.44 in just eight days and thus achieved a 33 percent pump, this trend was not sustainable. ADA/USD failed to hold the level and is back down about 10 percent to the $0.39 area.
ADA trend much weaker than ETH, LTC and DOGE
The altcoin price is only 20 percent above the low of the year. Compared to other top altcoins, ADA shows a relatively poor performance. The price of Ethereum has already risen more than 70 percent from its annual low at the current time. Buyers in Litecoin are up more than 50 percent, and even investors in DOGE should be happy about an increase in value of almost 160 percent.
Is it still profitable to buy ADA now before the price goes up? Technical chart analysis can provide indicators of potential price targets for ADA/USD.
Looking at the small time frame of the hourly candles on the ADA/USD chart, it can be seen that it is currently moving in a chart pattern. This is a neutral symmetrical pattern. ADA/USD was able to break through the resistance line briefly, but has since fallen back into the formation. However, another breakout is likely to occur, as the formation’s endpoint will be reached by November at the latest.
For traders on crypto exchanges, a confirmed breakout promises a 10 percent price move. The bullish price target is around $0.44. On the other hand, a bearish correction could take ADA/USD back to $0.35. When trading with leverage, experienced traders with 10x leverage could trade with a short or long Position in the best case to achieve a 100 percent profit.
Bullish price target of $2.6: 350 percent upside possible
However, this chart pattern only shows one scenario for next week. The daily chart is much more interesting in the medium term. Here, too, a very interesting formation can be identified with the technical analysis. ADA/USD has already created a large falling wedge in September 2021, in which the price has moved in total for more than a year without breaking support and resistance.
But on October 25, Cardano’s course managed to break out of this technically bullish chart pattern. On October 28, Cardano also confirmed the breakout by repeating the previous resistance line as a new support line. Overall, this can be seen as a bullish sign.
If Cardano can continue the trend now and find strength in the bulls, the technical price target is around $2.6. With this, Cardano could achieve an incredible 550 percent pump. However, there is still a long way to go and there is a risk that Cardano will fall back into the gel and it was just a fake. In this case, investors would have to be extremely careful.
New opportunity to buy: Dash 2 Trade Token in Presale
New cryptocurrencies promise great potential for returns for buyers. An exciting token worth checking out right now is Dash 2 Trade Token. The platform behind the signal aims to provide traders with crypto analysis, forecasts and trading signals. Users can compare data on chain, establish trading strategies and get the latest news on the crypto market.
The D2 token can be purchased in the presale right now. In the pre-sale stage 2, the token currently costs 0.05 dollars. But the quota is almost exhausted.