Cardano Price Surges 23.9%: Is ADA Rally Sustainable?
• Cardano experienced a 23.9% price surge on July 13, leaving many investors wondering if ADA can break the $0.40 mark.
• Three potential reasons for the rally include Cardano’s potential to integrate other blockchains, increased DApp activity and decreased regulatory risk due to the positive XRP ruling.
• The SEC’s remarks in June caused a 36% correction in ADA prices, but the latest XRP event has helped alleviate some of those fears.
Cardano Price Surge
Cardano experienced a remarkable price surge of 23.9% on July 13, leaving investors curious about the potential for further gains. This significant rally comes on the heels of a favorable judicial decision regarding XRP (XRP), leading many to question if Cardano (ADA) has what it takes to break above the $0.40 mark.
Reasons Behind Rally
There are three reasons to support Cardano’s bullish momentum, including its potential to integrate other blockchains, increased activity in decentralized applications (DApps) and the decreased regulatory risk since the recent XRP ruling.
SEC & Regulatory Risk
The United States Securities and Exchange Commission (SEC) referred to Cardano and its ADA token as potential security during court actions against Coinbase and Binance exchanges in June 2021. Following these remarks, ADA faced a 36% correction dropping to $0.24; however, when XRP was ruled in favor recently this helped alleviate some regulatory risks leading to an increase in ADA prices and other coins impacted by SEC comments.
Implementing Sidechains
After Chief Technology Officer at Algorand Foundation John Woods shared a video recently Charles Hoskinson founder of Cardano proposed incorporating Algorand (ALGO) as a sidechain into Cardano which may be beneficial for ALGO following SEC’s allegations of security-like characteristics against Algorand due to its initial coin offering (ICO).
Conclusion
The long term outlook for Cardano remains uncertain but there is evidence that suggests that it will continue gaining attention from both investors and regulators alike as it continues developing innovative blockchain solutions with its integration capabilities and network updates