- Analysts are backing altcoins to record immense gains following Bitcoin’s crumbling dominance and fundamental developments around top-tier altcoin projects.
- One of the coins expected to lead the altcoin rise is Cardano’s ADA.
Last week, Rekt Capital shared a chart showing the altcoin market cap movement in 2017. Specifically, it showed how the valuation reacted to the cap turning its 2014 highs into support. The market cap rallied +27,000% in over a year. In the current market, the cap has already turned the 2017 high into support. Since it has rallied +119 percent, it has massive room to grow should it follow the same price pattern.
Last time Altcoin Market Cap turned its old 2014 highs into support…
It rallied +27,000% in over a year
Altcoin Market Cap has rallied +119% in 70 days since turning its old 2017 highs into support
— Rekt Capital (@rektcapital) May 3, 2021
As highlighted by market observer Lark Davis, who predicts an altcoin market cap explosion over the coming months, there is more support away from the technical price chart. For starters, there is a huge amount of money coming from retail investors. He notes that it has never been as easy as it is right now for retail investors to buy cryptocurrencies. This has been facilitated by the likes of Visa, Square and Robinhood.
Additionally, unlike in 2017 when Ethereum and only a handful of projects were launching products, a lot of projects are now rapid and innovative. Ecosystems have in the last few months been releasing working products that the world can enjoy and benefit from.
One of these is Cardano which is has been robust in developments and partnerships.
Although Ethereum continues to improve with the Layer-2 solution set to revitalize it to stay ahead of the competition, Ethereum killers such as Binance Smart Chain, Polkadot, and Cardano are setting the groundwork for an explosion.
Cardano leading the charge
EllioTrades Crypto, a YouTuber who shares market analysis and developments believes that there will be huge gains in Cardano once projects built on the Cardano blockchain begin to come out. Despite taking a lot of time building the infrastructure, Cardano is looking like a promising ecosystem for projects to build on. He particularly lauds Charles Hoskinson for a unique approach in building Cardano especially after settling up infrastructure in Africa, which begun with a partnership with the Ethiopian government.
It does feel as though Cardano is on the brink of going absolutely wild and the projects within it. The new DEXs, what is going to be the PanCake of Cardano? What is going to be the UniSwap of Cardano?… It also leaves room for NTF projects, insurance projects, DeFi projects and for oracles.
Looking at the price chart, the analyst notes that ADA has recently broken out of the 2017 resistance. At the time, ADA topped at $1. If ADA can set 2017 high as the support, it can explode much as the altcoin cap did in the 2017 bull market.
However, there is a warning that Cardano is notorious for delaying projects mainly because of thorough research into its infrastructure. For now, what is clear is that it is an exciting time for ADA and the entire altcoin market.