The following article is a submitted piece and is not the responsibility of Crypto Insiders. This is not financial advice.
Since its peak in November 2021, the total cryptocurrency market capitalization has shrunk by over $1.5 trillion in just 6 months. This is due to the macroeconomic outlook, the correction of the monetary policy of the main central banks in the face of high inflation and the conflict between Ukraine and Russia.
However, in the last two days, more than $60 billion has returned to the cryptocurrency market, taking the global cryptocurrency market from $1.21 trillion to $1.271 trillion. Bitcoin has reclaimed the $31,000 level and is approaching $32,000.
More surprisingly, Cardano (ADA) is up nearly 50%, making it the second-largest gain among the top 100 cryptocurrencies in the past two days. ADA is trading around $0.67 at the time of writing.
What causes the ADA price increase?
The main reason behind ADA’s rally this week may have been the rise in decentralized finance (DeFi) activity on the blockchain. In August 2021 Cardano launched the ‘Alonzo’ hard fork allowing DeFi applications to run on the Cardano network. Since the release of Alonzo, Cardano has smart contracts functionalities and more than 94 applications have already been launched on the blockchain. The more active DeFi is, the more it looks at Cardano and the ADA volume increases, as well as the total value locked (TVL). According to data from Messari, the transaction volume on Cardano reached a whopping $9.57 billion in one day, surpassing Ethereum (ETH).
In addition, no less than 986 projects are currently being worked on in Cardano, of which 88 have already been launched and the number of non-fungible token (NFT) projects amounts to 5,727. An ADA reports that whale on Twitter on May 28. Despite the decline of the crypto market, the NFT market is on track to top 2021 and that may also be a bullish catalyst for ADA price.
Technical Analysis: ADA May Recover to $0.9
On the daily chart, ADA decreased by lower lower to fall and made the price strong rebound to the top of the Bollinger Band indicator. Meanwhile, the moving average convergence divergence (MACD) signal line is trending towards 0, while the positive histogram is rising. And the Relative Strength Index (RSI) is above the midline of 50, which also indicates a bullish bias. If ADA can hold firmly above $0.6, the next target could be the previous high from early May around $0.9.
The best way to invest in ADA and get more profit
From the above analysis, we can see that ADA may continue its upward move for the foreseeable future. If you have a lot of money, you may be able to buy ADA in spot trading and make a lot of money from the price swings. If not, ADA futures trading could be the tool for you.
With ADA futures you can buy 100x take advantage of, or leverage, so you can make big profits even with small amounts. However, keep in mind that this is very risky.
For example, suppose you use 100 ADA to make a lung position worth 10,000 ADA. If you add 100x leverage on an ADA price of $0.06 and the price actually goes up to $0.9, your profit is as follows: ($0.9 – $0.6) * 10,000 ADA / $0.9 * 100% = 3,333 ADA = 0.09 BTC . the Return of investment (ROI) is then a maximum of 4959.75%.
So, with a price movement of $0.3 and 100 ADA as investment capital, you could potentially earn more than 3,000 ADA. This profit is clearly higher than with spot trading.
Bexplus – a popular crypto futures exchange with 100x leverage
Bexplus is a leading crypto derivatives trading platform offering 100x leverage on ADA futures. The platform also offers futures contracts for BTC, ETH, DOGE, XRP, and more. Bexplus does not require KYC and is trusted by over two million merchants from over 200 countries and regions. Bexplus is accredited by the American FinCEN Money Services Business (MSB).
Why Bex Plus?
- 100% deposit bonus, deposit 1 BTC and get 2 BTC credit.
- Demo trading account with 10 free BTC.
- Professional trading app for Android and iOS
- Ultra-fast and easy recording process.
- High liquidity. All orders are executed immediately.
- No system outages during strong market volatility.
BTC wallet with up to 21% interest
Bexplus also has a BTC wallet especially for users who are not very experienced with futures trading and want to earn money without risk. All the BTC stored in the wallet are very well secured and protected. If you keep BTC in the wallet, you can enjoy a maximum of 21% annual interest.
Copy Trade – Earn BTC Together With Top Traders
Bexplus’s unique copy trading feature gives any investor just starting out the opportunity to become a veteran. Allows users to copy orders from experienced traders. You can choose a top trader to follow based on their win rate, P/L ratio, and number of followers. You can also adjust the size of the position, the take profit Y stop loss and close trades at any time.
If you missed out on buying ADA at the bottom, you can now trade ADA futures to maximize your profits! Click here to join Bexplus now and get 10 BTC bonus.
The above article is a submitted piece and is not the responsibility of Crypto Insiders. This is not financial advice. Investing involves risks. Always consult an advisor when making financial decisions.