Cardano Price Analysis: ADA Still Undervalued after Flipping USDT

Cardano extended its euphoric rally on Wednesday, as the combination of fundamental news, technical progress and a market-wide ‘fear of missing out’ propelled ADA to five-month highs. Despite the year-long bear market, Cardano has enjoyed a return on investment of more than 320% since the initial launch of the cryptocurrency back in 2017.

ADA Price Analysis

The ADA cryptocurrency peaked at $0.0941 on Wednesday, the highest since October. At last check, the ADA price was trading at $0.0927, having gained 15.7%. Cardano’s price is up around 2 cents since Tuesday.

Trade volumes have more than doubled in the last week, reaching $231.1 million, according to CoinMarketCap. The largest markets for ADA are ZGB and Binance, followed by Huobi and UPbit. Cardano has also been linked to speculation of a possible Coinbase listing, which would allow users to purchase ADA using fiat currency.

Just before the latest uptrend began, Hacked reported interesting similarities between Cardano and bitcoin. Both cryptocurrencies experienced near-identical trading patterns in recent times, including two failed breakout attempts and four months of accumulation before pushing out of an established range.

Also read The Long-Term Bullish Case for Cardano (ADA).

Another ‘Flippening’

The latest rally has pushed Cardano’s market capitalization past $2.4 billion, where it overtook Tether (USDT) for ninth spot in the market cap index. Cardano was ranked 11th at the start of the year.

Tether is falling through the market-cap rankings as investors use the stablecoin to snatch up bitcoin and alternative coins. The crypto surge was initiated on Tuesday after a mystery order drove bitcoin to a 20% rally in Asian trading. It has since come to light that the order was a $100 million bet on bitcoin spread across three virtual exchanges. From there, the melt up quickly spread to altcoins and tokens, which have since taken the reigns in terms of percentage growth.

Cardano: A Strong Case to Buy

Despite flying under the radar for the past year, Cardano has emerged as one of the best value drivers for long-term investors. The platform’s peer-review approach to cryptocurrency allows the developers to embrace “a collection of design principles, engineering best practices and avenues for exploration” not available on other blockchains.

Cardano recently underwent a successful hard fork that paves the way for Shelley, the next critical development phase. The hard fork had no impact on investors as the technical upgrade was planned and agreed upon by the federated system.

Later this month, Cardano founder and CEO Charles Hoskinson will provide an update on the project roadmap, which is expected to undergo a major evolution through 2020. The roadmap will be presented at the upcoming IOHK Summit April 17-18.

Beyond these developments, Cardano is also among the top ranked cryptocurrencies in circulation, according to CoinMarketCap. The website’s Fundamental Crypto Asset Score (FCAS), which tracks user activity, development behavior and asset majority, gives ADA an ‘A’ rating. Only ZRX and Ethereum are ranked higher. At last check, the FCAS score was a few points below its record high.

In terms of price level and performance, ADA is still trading 92% below its record high but has returned 327% since inception.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Chief Editor to and Contributor to, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi