Cardano Shows Big Promise For February – Will ADA Get Some Love At $1?

ADA, the Cardano ecosystem governance token, has enjoyed renewed sentiment in the cryptography market. Coingecko data shows that the token rose by over 58% in the monthly time frame while simultaneously showing green in other time slots.

This is due to numerous internal and external developments in the cardano ecosystem and throughout the crypto industry.

The cryptocurrency market is in the middle of a rally that has made most of the cryptos, cardano included, find lost ground when the bears fight a path until 2022.

Chart: Coingecko

CoinMarketCap data shows the crypto market currently maintaining a total market capitalization of a little over $1.07 trillion. 

In the meantime, Djed – Cardano's stablecoin in cooperation with COTI – should be published in the coming days. This stability should increase the ADA price, and maybe help propel the crypto to $1.

With major cryptocurrencies also continuing their rallies, we might see the token on or above the $1 mark.

How is Djed functioning? 

Djed is an overcollateralized stablecoin built on top of Cardano to support the ecosystem. Stability, in contrast to other stability, will not be supported by reliable currencies or complex algorithms. Djed is said to be supported by other cryptocurrencies such as ada and shen. 

Shen, the conservation symbol of the djed ecosystem, would keep stablecoin stable while ada can be used to invest in the djed mint ecosystem. According to available information, the ratio would be between 400-800% of the backing tokens. 

Djed will be the first stablecoin to incorporate a formal verification process to ensure its price is stable, making it an important new input for decentralised financial transactions (challenge).

Goal of $1 - short to long term?

Ada bulls are currently aiming at $1 because they speculate that releasing djed would cause a boom in the chip price. However, the price of the token has reached a resistance range of $0.4. This may interfere with the upward movement of the token. 

The $1 brand would be the bull's long-term goal as the djed unfolds. Investors and traders may try to shore up to its current support of $0.3816.  If they succeed, the $1 target could be a long-term reality. 

ADA total market cap at $13 billion on the daily chart | Chart: TradingView.com

Investors and traders should also be careful in the short to medium term as the token’s price might retreat due to the rejection. However, they can count on ada's correlation with the main cryptocurrencies such as Bitcoin and Ethereum that have broken their respective resistances.

Monitoring changes in their respective prices could contribute to medium- and long-term decision-making. With the release of the Cardano Stablecoin on the corner, the ADA bulls could be able to regain lost ground with a possible $1 break-through. 

Screenshot of The Altcoin Oracle.