Cryptocurrency analyst LuckSide Crypto believes that Cardano (ADA) has significant potential for growth, even after recovering from a recent drop. In a recent analysis, he points to positive news of a spot Bitcoin ETF approval as a catalyst for Cardano’s surge. This article examines LuckSide Crypto’s analysis and explores the factors contributing to Cardano’s potential.
LuckSide Crypto notes that Cardano reached $0.60 following the news of the spot Bitcoin ETF approval. This resulted in a double-digit surge for ADA, along with other altcoins gaining dominance over Bitcoin. While this price increase is impressive, LuckSide Crypto suggests that it may just be the beginning of a bigger trend.
The Role of Capital
The primary reason LuckSide Crypto predicts the market is just getting started is the movement of capital on a larger scale. He highlights that there has been a significant change in USDT held on exchanges, with 597 million USDT being held, the highest level in 208 days. Additionally, there have been total flows of $6.6 billion, indicating that capital is preparing to buy.
Preparing for Big Announcements
LuckSide Crypto compares the inflows of USDT during this period to suggest that people are anticipating big announcements and are consequently preparing to buy cryptocurrencies. This anticipation fuels the current run for ADA and the broader crypto market. However, LuckSide Crypto acknowledges that retracements are still possible.
According to LuckSide Crypto, when there is a lot of fuel in the tank, it is unlikely to sit idle. This implies that the current surge in ADA and the crypto market is just the beginning of a more significant movement. Although Cardano’s price has slightly faltered at the time of writing, sitting at $0.5766 according to CoinMarketCap data, it still represents a 14.7% increase in the last day and a 2.1% increase in the last month.
Cardano’s potential for growth appears to be just the beginning. Analyst LuckSide Crypto’s analysis highlights positive market indicators, such as the surge in ADA following the spot Bitcoin ETF approval and the significant capital preparing to enter the market. While retracements are possible, the overall sentiment suggests that Cardano and the broader crypto market are poised for further growth. As always, it’s important for investors to stay informed and carefully consider the risks associated with investing in cryptocurrencies.