Cardano has resumed on an upward movement again. The crypto which had staggered continuously for the better part of a week has finally begun to pick up steam, pushing it back up again. Solana, one of the rivals of Cardano, had successfully flipped the latter last week after SOL had hit new all-time highs continuously. At a point, Cardano had been pushed out of the top 5, courtesy of Tether and Solana.
For a while, it looked as if ADA would never be able to pick itself back up from this fall. However, this would prove to not be the case. The smart contracts platform had begun posting a small upward rally that saw the asset begin trading in the green again. This has enabled the digital asset to reclaim its spot on the top 10 cryptocurrencies by market cap.
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Cardano Flips Solana
In what looks to be a flipping the flipper situation, Cardano has reclaimed its spot from rival Solana. ADA now sits at 4th place on the top 10 crypto list on CoinMarketCap, putting it back in the top 5 most valuable cryptocurrencies.
The price of ADA had stagnated after the bull run that saw it break $3 for the first time. Its reign above this price point would later prove to be short-lived as ADA took a beating down that, at some point, the digital asset fell below $2. This gave rival asset Solana the perfect opportunity to pursue a flippening event and it did not take long before SOL had overtaken ADA.
ADA on a downward trend | Source: ADAUSD on TradingView.com
During this run, ADA also flipped another high-ranking crypto, Tether. Tether has consistently maintained its spot in the crypto top five and has retained this position. But it is now one spot below Cardano which claimed the highly coveted 4th spot from Solana. BNB had flipped ADA last month to take the 3rd place and it has maintained this position ever since.
Optics For ADA
Looking at ADA in the short term does not spell positive trends for the altcoin. ADA has been trading below its 100-day moving average, showing strong sell pressure in the asset. This has worked towards beating down the price of the digital asset to its current value.
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The market sentiment being positive has not seemed to rub off on the asset, which has consistently done poorly in the past month despite the rest of the top cryptocurrencies rallying.
Mostly, the lull in Cardano has been due to waiting for decentralized finance applications to debut on the blockchain. The Plutus Application Backend (PAB), is yet to launch, which would aid developers in deploying their applications on the network. Nevertheless, the project is said to be on track, as confirmed by Cardano founder, Charles Hoskinson. Once the PAB launches, the asset should begin to see more upside in its value, in addition to bullish trends picking up.
Featured image from Finbold, chart from TradingView.com