Today, Cardano has capitalized on the FUD around Bitcoin and its energy usage. Cardano has worked very hard to position itself as a green, sustainable blockchain. (Just google 'Cardano Sustainable' for examples of that). Musk, in his now infamous tweet, mentioned that Tesla would be considering more energy friendly blockchains for use as payment. Now, back when Cardano did the Mary hard fork, Elon tweeted a picture of a fork - many believe in reference to the Cardano milestone. Putting the pieces together, Musk is looking for a greener blockchain. Cardano is well positioned for that - and signs are that Musk has supported Cardano in the past. This is why ADA is pumping today.
Of course, it's widely assumed that very few people actually used their Bitcoin for payment for a Tesla - but that's not the point. The name of the game is sentiment, and Musk threw some serious shade on Bitcoin. Love or hate the guy, he moves markets. And it's an interesting pivot - potentially towards Cardano.
If Cardano delivers on their commitment to release the Alonzo hard fork this summer - making it a fully functional smart contract blockchain - there is a path to big things for ADA. Most especially if Etherium's EIP-1159 is delayed or doesn't go as planned. As is, Etherium is running out of time, and Cardano hot on its heels. People's patience for unusable transaction costs is stretched thin, and many view EIP-1159 this year as a make or break for ETH.
If you imagine a scenario where Musk endorses Cardano, and Cardano's fork goes as planned this summer - things could get very interesting between Cardano and Etherium. Especially if something goes wrong with the EIP-1159 upgrade, or it gets delayed again.
As of writing this, ADA is testing the 1.618 fib at $1.95. If it makes it through, it's pretty clear sailing through around $2.50. If it doesn't break through, expect it to trade between $1.55 and $1.95 for the foreseeable future. Barring any other crazy news of course.
Of course, it's widely assumed that very few people actually used their Bitcoin for payment for a Tesla - but that's not the point. The name of the game is sentiment, and Musk threw some serious shade on Bitcoin. Love or hate the guy, he moves markets. And it's an interesting pivot - potentially towards Cardano.
If Cardano delivers on their commitment to release the Alonzo hard fork this summer - making it a fully functional smart contract blockchain - there is a path to big things for ADA. Most especially if Etherium's EIP-1159 is delayed or doesn't go as planned. As is, Etherium is running out of time, and Cardano hot on its heels. People's patience for unusable transaction costs is stretched thin, and many view EIP-1159 this year as a make or break for ETH.
If you imagine a scenario where Musk endorses Cardano, and Cardano's fork goes as planned this summer - things could get very interesting between Cardano and Etherium. Especially if something goes wrong with the EIP-1159 upgrade, or it gets delayed again.
As of writing this, ADA is testing the 1.618 fib at $1.95. If it makes it through, it's pretty clear sailing through around $2.50. If it doesn't break through, expect it to trade between $1.55 and $1.95 for the foreseeable future. Barring any other crazy news of course.