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Why Cardano’s next bull run may be depend on Musk and how ADA fits in the puzzle
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Cardano’s founder Charles Hoskinson has an active social media presence through which he maintains engagement with the community. His latest podcast particularly captured the attention of many because it was addressed to Elon Musk on how to create a decentralized Twitter.
Here’s AMBCrypto’s price prediction for Cardano [ADA] 2022-2023
Hoskinson’s proposal urged the Tesla CEO to consider a decentralized overhaul of the decentralized platform through Cardano. This was in light of the increasing concerns regarding censorship. Meanwhile, Elon has been trying to create a better monetization strategy for Twitter.
Video to Elon: How to Build Decentralized Twitter Using Doge and Cardano for Profit and Pleasure https://t.co/g9p1MnSqPZ
— Charles Hoskinson (@IOHK_Charles) November 6, 2022
Hoskinson’s proposal featured ideas on how to monetize the platform using prediction markets and economic agency. He also suggested turning tweets into NFTs. The Cardano CEO further recommended using cryptocurrencies to monetize Twitter.
Potential implications on Cardano and ADA
History has proved that Elon Musk tends to embrace ideas that are often considered wild or beyond the normal scope. It would not be surprising to see the Tesla CEO embrace the Cardano CEO’s idea. A partnership between Twitter and Cardano could also prove to be monumental.
More importantly, it would provide a base for more robust utility for ADA as the potential transaction medium. Such kind of adoption would likely trigger a massive demand wave for ADA. However, the market so far didn’t respond aggressively to Hoskinson’s proposal considering ADA’s price action.
ADA traded at $0.40 as of 7 November after a 7% retracement from its latest local peak on 5 November. However, ADA’s price at press time, traded at $0.38 after suffering a price correction of 5.4% in the last 24 hours.
However, contrary to the above-mentioned information, ADA did manage to pull off a 30% upside in the last three weeks. But, its latest upside seems to have encountered resistance near the $0.43 price level. This is the same level that the price retraced from in the last three to four days.
ADA’s slight downside also reflected a slight drop in Cardano’s development activity. A sharp drop in its velocity was also observed in the last three days, indicating that the bullish momentum was losing steam.
Source: Santiment
Numerous other metrics also confirmed that the recent trend was witnessing a slowdown. For example, Cardano’s daily active addresseses registered an overall decline in the last few days. The transaction volume metric achieved a similar observation but it registered its largest four-week spike between 6 and 7 November.
Source: Santiment
The spike in transaction volume might be an indicator that bullish demand was recovering. This was considering the price managed to achieve a sizable uptick in the last 24 hours. Thus, overcoming the bearish momentum it gathered during the weekend.
A positive response from Elon Musk with regards to Hoskinson’s proposal would be a strong forward move for Cardano. It would also likely trigger another bull run for ADA.
