Cardano Price Surges Following 96% Retracement

After a long and brutal correction, Cardano is finally showing signs of recovery. The platform’s native token emerged as one of the biggest winners on Sunday, joining Stellar’s XLM at the top of the leader board.

ADA Price Update

Cardano’s ADA rose by as much as 12% on Sunday to reach a high of $0.093, its best in six days. At the time of writing, ADA was up 7.7% at $0.089, according to CoinMarketCap.

ADA’s daily trade volume has spiked 370% over the past seven days. On Sunday, daily turnover on digital currency exchanges reached $145.9 million. Binance was the biggest spot market for ADA trades, with roughly 40% of transactions taking place on the exchange. Upbit processed nearly a third of the daily turnover.

At current values, ADA has a market capitalization of $2.3 billion, up more than 27% from last week.

Extremely Oversold

While no asset has been spared from the yearlong market downturn, Cardano’s ADA was among the hardest hit. As Weiss Ratings highlighted last week, ADA is among four top-25 coins to have experienced a 90% retracement from its peak. ADA was down a staggering 96% from peak-to-trough, worse than XRP, NEO and IOTA.

Despite experiencing oversized losses relative to the majors, Cardano has been labeled one of the most promising blockchain projects since bitcoin. Founded by Charles Hoskinson, the influential co-founder of Ethereum, Cardano plans to use proof of stake to solve scalability and interoperability challenges. Ouroboros, the proof of stake algorithm employed by Cardano, achieved a significant security breakthrough earlier this year and is now considered “scientifically secure” by the blockchain community.

XRP Factor?

XRP’s three-fold increase since Thursday appears to have paved the way for other cryptocurrencies to follow suit. The market’s total capitalization reached a high near $229 billion on Sunday after XRP briefly overtook Ethereum as the world’s second-largest blockchain.

The market experienced another “flippening” on Sunday after Stellar’s XLM leapfrogged EOS for fifth spot in the value rankings. XLM is back in the no. 6 slot with a market cap of nearly $5.3 billion, but has gained more than 17% over the past 24 hours.

XRP’s price is sometimes considered a bellwether of institutional adoption in blockchain technology. The coin’s sharp and sudden upswing is in direct response to growing institutional adoption of Ripple’s underlying technology as well as the company’s plans to commercialize its cross-border payment platform.

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.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, 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