If you're a contrarian investor, now could be the perfect time to find some beaten-down cryptos that are trading well below their all-time highs. What you should be looking for are cryptos that have been unfairly punished as a result of a broader market sell-off. When people panic and sell, they literally sell everything, and that creates some unique buying opportunities, especially in the lower end of the market.
Take Cardano (CRYPTO: ADA), for example. Cardano is now trading at $0.51, more than 80% off its all-time high of $3.10 reached last September. This is exactly the type of crypto that we're looking for -- it's outrageously cheap as a result of having been beaten down with the broader market and doesn't need to do much to provide a nice return. But does Cardano have enough to double in price to the $1 mark?
The first factor in Cardano's favor is that there appears to be a direct correlation between major tech upgrades and rallies in the price of Cardano. Take a quick look at the price chart for Cardano. Ahead of the Mary upgrade in March 2021, Cardano rallied. Ahead of the Alonzo upgrade in September 2021, Cardano rallied. And guess what? Cardano is nearing the launch of another major tech upgrade, known as the Vasil hard fork. This upgrade was originally scheduled to be completed in June, which is why we saw signs of a brief rally in Cardano at the beginning of the summer. But the timetable for the upgrade has dragged on, and it now appears to be scheduled for sometime in August. That could be a perfect catalyst for Cardano to start moving upward in price.
Source Fool.com