• Cardano recently got approved to list for trading on Japanese cryptocurrency exchanges, despite extremely strict listing rules.
  • Cardano rallied with other altcoins in mid-May and traded above the dollar mark during a bloodbath as the asset's price shows resilience.
  • Coin Bureau analyst Guy predicts that the altcoin may rally to $5 by the end of 2021, assuming there will be another Bitcoin bull run.

Cardano has been rallying for the past two weeks. The supply squeeze on exchanges is set to drive ADA's price higher after smart contracts are launched on the Cardano network.

Cardano price climbs 8% in a week, supply squeeze builds up on exchanges 

Cardano (ADA) has offered 663% gains since the beginning of the year. ADA consistently fared better than other altcoins through the downturn of May 2021. ADA currently shows signs of resilience although it is 64.7% away from its all-time high of $2.29. 

The asset's price has climbed 8% in a week, ahead of the Alonzo hardfork and analysts expect a prolonged rally in 2021.

Cardano Price Chart

Cardano Price Chart

Recent updates in the Cardano network may have triggered the price rally. Against all odds, ADA has been approved for listing on Japanese cryptocurrency exchanges. Japan has one of the hardest listing requirements globally, and ADA now features in the list of a handful of cryptocurrencies on Japanese exchanges.

Dan Gamberdello, YouTuber and founder of Crypto Capital Venture, tweeted

Cardano analysts and traders are bullish on the latest development updates from Charles Hoskinson, the founder of Cardano. Hoskinson slammed skeptics and assured traders that development for the Alonzo hardfork and rollout of smart contracts is on track.

Smart contract functionality was set to be introduced in the Goguen Era on Cardano's roadmap and we are at the tail end of this phase. The long wait has increased the uncertainty and traders are now closesly watching Hoskinson's updates and the asset's price.

As ADA's price rally continues, the community is awaiting the announcement of the exact date of the hardfork since it is expected that smart contracts will go live soon after the event. The altcoin's robust tokenomics further support the ongoing rally. Only 16.67% of the token's initial supply was allocated to the company's founders and project. The remaining ADA was sold to retail investors. The only new supply of ADA in circulation is coming from staking rewards. 

Interestingly over 70% of ADA's circulating supply is currently staked, and a mere 30% is changing hands on exchanges. This supply squeeze implies that it is easier for the altcoin to rally. The shortage of supply fuels ADA's bullish narrative. 

Guy of Coin Bureau, a crypto influencer and YouTuber, has predicted that ADA will hit between $4 to $5 before the end of 2021. In a recent Youtube video, Guy said,

I could see ADA reaching $4 to $5 by the end of the year, assuming Bitcoin sees another slingshot of the upside in September or October, which is likely, in my opinion.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Decentraland price under pressure by market turmoil, MANA points to steep correction

Decentraland (MANA) has not been able to sit back and enjoy its all-time highs printed on Thursday, above $6.0. MANA price reversed to the downside as a wave of negative news surrounding a new Covid variant hit news wires during the Asian session.

More Cryptocurrencies News

Bitcoin, Ethereum, XRP at discount ahead of Black Friday while investors fear new COVID strain

Over $265 billion wiped off the overall crypto market capitalization in a bloodbath as news of the new Covid strain breaks out. Bitcoin, Ethereum and Ripple prices have tumbled over 6%, and the top 10 cryptocurrencies are trading at a steep discount.

More Bitcoin News

XRP holds key support while indicators point to short-term recovery

Ripple started a recovery wave above a key support level of $1.024. XRP price started an upside correction as indicators suggest a short-term recovery. The coin may initiate a fresh downtrend upon a breakout of the $1.024 support level.

More Ripple News

Dogecoin-killer Shiba Inu hits 1 million holders, gets listed on South Korean exchange

Shiba Inu hit an important milestone of 1 million holders with a rise in the number of investors. The memecoin listed on a South Korean crypto exchange successfully despite strict regulatory requirements. 

More Shiba Inu News

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!