Cardano resumed its upward movement again. The cryptocurrency, which has been staggered continuously for most of the week, finally started to rebound, pushing up again. After SOL continuously hit record highs, Solana, one of Cardano’s competitors, successfully reversed the latter last week. Due to Tether and Solana, Cardano was once squeezed out of the top 5.
For a while, it seemed that ADA would never recover from this fall. However, it turns out that this is not the case. Smart contract platforms began to rise slightly, and assets began to trade in green again. This allows digital assets to regain the position of the top 10 cryptocurrencies by market capitalization.
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Cardano flips Solana
Cardano has regained his position from rival Solana, which seems to be a flipping flipper situation. ADA is now ranked 4th on CoinMarketCap’s list of top 10 cryptocurrencies, making it re-enter the top 5 most valuable cryptocurrencies.
The price of ADA stagnated after the bull market, breaking through $3 for the first time. Its reign above this price point later proved to be short-lived, because ADA was hit, and at some point, the digital asset fell below $2. This provided Solana, a competitor’s asset, with an excellent opportunity to carry out an earth-shaking event, and soon SOL surpassed ADA.
ADA on a downward trend | Source: ADAUSD on TradingView.com
In this run, ADA also flipped another advanced cryptocurrency, Tether. Tether has always maintained its position in the top five cryptocurrencies and maintained this position. But now it is one place lower than Cardano, who won the coveted fourth place in Solana. BNB left ADA in third place last month and has maintained this position ever since.
In the short term, ADA does not mean a positive trend for altcoins. The trading price of ADA has been below its 100-day moving average, showing the strong selling pressure of the asset. This helps to drive down the price of digital assets to their current value.
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The positive market sentiment does not seem to affect the asset, and despite the rise of other top cryptocurrencies, the asset’s performance over the past month has been poor.
In most cases, Cardano’s calm is due to waiting for decentralized financial applications to debut on the blockchain. The Plutus Application Backend (PAB) has not yet been launched, and it will help developers deploy their applications on the web.Nevertheless, the project is said to be on the right track because Cardano founder confirmed, Charles Hoskinson. Once the PAB is launched, in addition to the bullish trend recovery, the value of the asset should begin to see more room for upside.
Featured image from Finbold, chart from TradingView.com