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Cardano still has room to grow says Messari CEO as ADA/USD faces bearish correction

  • Cardano’s Shelley update is the main catalyst for the token’s recent surge.
  • ADA has room for growth as investors pursue lower rates to buy and stake on exchanges.

Ryan Selkis, the CEO of Messari, recently commented on Cardano’s rise in price and observed that it still has room to grow. According to him, lower staking rates for ADA could mean a higher reward payout for investors who are “wondering if they’re late to the party.” 

The CEO noted that Cardano’s upcoming Shelley is one of the catalysts for the token’s recent surge. 

The potential discrepancy between staked and un-staked ADA however, could bode well for bulls even after Shelley goes live. While the initial staking percentage won't be known until after launch, Cardano's incentivized testnet saw participation from ~40% of the reported supply. If this carries over to mainnet, Cardano's staking rates will be significantly lower than other large-cap networks like Tezos (80%) and Cosmos (71%).

Selkis said that there is plenty of room for growth in ADA as investors pursue lower staking rates to buy and stake on exchanges.

ADA/USD daily chart

ADA/USD daily chart

ADA/USD bears stepped back in to take the price down from $0.1328 to $0.1315 in the early hours of Wednesday. The price is correcting itself, following a heavily bullish Tuesday. The MACD shows decreasing bullish momentum. The RSI is creeping along the edge of the overbought zone, indicating that the price is currently overvalued, hence the bearish correction. ADA/USD has strong support at $0.1258 (downward trending line) and $0.12.

Author

Rajarshi Mitra

Rajarshi Mitra

Independent Analyst

Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.

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