Weiss Rating Upgrade Could Boost Cardano (ADA) Price
It’s true, Cardano (ADA) has lost more than 90% of its value since January of 2018. In recent weeks, one ADA has been hovering around $0.08 USD. In the 24 hours following the Weiss announcement, ADA jumped a respectable 12.45%, though this has fallen to just under 5% at the time of this writing.
There are numerous limiting factors on current cryptocurrency prices. Confidence in Bitcoin is not what it was a year ago. This holds the price of Bitcoin down, and casts a pall on all other cryptocurrencies, at least from investors’ perspectives. It’s very difficult for an altcoin to prove its value independent of Bitcoin. Ripple XRP seems to be doing just that in recent days, which is a hugely significant development. But, still, Bitcoin’s influence looms larger than any other price contributor.
Future Market Possibilities
The market can change one of two ways, relative to Bitcoin:
1) Bitcoin can go on another bull run, carrying the prices of altcoins along with it. This is what happened in the bull run in 2017. Confidence in Bitcoin made room for confidence in all other blockchain projects.
2) The market “decouples” from Bitcoin. Some other digital asset like Ethereum or Ripple proves to the world that it is just as useful as Bitcoin, or more so. This asset takes on a massive expansion in its market cap, and either becomes the new #1 or a much more powerful #2.
In either of these two instances, Cardano prices would be likely to rise, perhaps even more than the 10X projected by Weiss. In another scenario, where Bitcoin prices continue to languish and no other currency establishes itself as the new king of the cryptocurrencies, Cardano prices are very likely to go anywhere but down.
While that might sound like we’re pessimistic, this couldn’t be further from the case. The recent announcement that Google would stop banning ads from regulated exchanges will allow marketing to resume for legitimate cryptocurrency companies, much like it did in 2017. Furthermore, Coinbase’s announcement that it will now allow the selling of qualified submissions will bring altcoins like Cardano to a new worldwide audience.
These market conditions, along with an above-and-beyond performance by Ripple in recent days, indicate that we could be on the verge of a real and lasting market recovery. In this case, assets like those identified by Weiss truly could be selling at unimaginably low prices at present.
We can’t tell you what to buy. All we can do is report the news, and observe how these events affect prices. If you think the wind is blowing the way we do, low prices might not seem like the bad news that some investors are complaining about.
(*Information in this article should not be taken as investment advice.)
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