Cardano and ADA token: Let us dig deeper
Cardano is a peer-reviewed blockchain project that seeks to be a better infrastructure platform than Ethereum and other proof-of-work networks. The network started to allow external developers to build apps of all kinds in 2021 after the Alonzo hard fork.
ADA is the platform’s native token that is used to secure the system and reward its validators. Its price soared to an all-time high of $3 in 2021, giving it a market capitalization of over $90 billion. Since then, it has lost momentum and declined by 65% from its all-time high. Its market capitalization has retreated to $35 billion. It has a diluted market cap of $49.53 billion.
According to its white paper, the maximum supply of ADA is 45 billion, while the circulating supply is over 43 billion. Cardano is used for building DeFi apps, and the total value locked (TVL) in the ecosystem is $118 million.
Cardano (ADA) price history & technical analysis
Cardano’s price has had a difficult time as investors watch the network activity as developers start building in its platform. As a result, the price has retreated from $3 on September 3rd, 2021, to a low of $0.92 in February 2022. That means that long-term holders have lost an excess of $60 billion of value.
On the daily chart, Cardano declined to the important support level of $0.9252 in February. It was a critical level since it struggled, moving below it in April, May, and June of 2021.
The coin formed a death cross in December last year when the 50-day and 200-day moving averages made a crossover. In technical analysis, it is usually a bearish sign. It also formed a head and shoulders pattern. Therefore, there is a likelihood that the coin will have a bearish breakout in the coming days. If this happens, the next support point to watch will be at $0.50.
Cardano (ADA) price prediction for a year
Like all cryptocurrencies, ADA faces several important risks in 2022. The most important risk is the Federal Reserve, which is expected to have an aggressive monetary policy. The bank has hinted that it will deliver about three rate hikes this year.
However, this does not mean that Cardano will have to drop when rate hikes start. Besides, most of these increases have been priced in.
According to Long Forecast, the coin will end 2022 at about $0.50. Another estimate by WalletInvestor shows that Cardano will drop and then start bouncing back later this year. They predict that it will be above $2 in January.
Using the weekly chart and the Andrews Pitchfork tool, we can estimate that the top support and resistance for the coin by December will be $1.98 and $4.60. These moves will depend on how users will receive the platforms built on Cardano. Another factor will be the performance of other cryptocurrencies during the year.
Cardano price prediction for 2025
Cardano is a controversial project. Critics have argued that it took almost six years for the project to add smart contract features to its platform. During this time, other platforms like Avalanche and Polygon were started and scaled.
Still, Cardano is still one of the most popular platforms in the blockchain industry. According to Messari, its network handles over $35 billion in a day. Therefore, there is a likelihood that the network will keep growing.
Therefore, we can assume that its price will be much higher than where it is today. A calculation by CoinPricePredict estimates that ADA will be trading at $3.5 by 2025. Another estimate by Digital Coin Price is that Cardano will start 2025 at $2.62 and then end the year at $2.32.
We can also use a conservative estimate by predicting that Cardano will be substantially higher than where it is today. If this is the case, there is a likelihood that the coin’s price will rise by about 3x by 2025. If this is the case, it will be trading at $3.3.
Cardano in questions & answers
Is Cardano coin real?
Yes. Cardano is a real cryptocurrency. ADA has a market cap of over $32 billion and is offered by most brokers. Also, on-chain data shows that its network is used widely.
Will Cardano reach $10?
No. ADA is trading at $1.1, meaning that its price needs to rise substantially to get to $10 by 2022. This is highly unlikely. However, in the next five years, there is a possibility that it will get to $10.
Should I buy Cardano coin?
Wait. While Cardano seems like a good coin, you should first wait. As we mentioned above, technicals suggest that the coin could drop further in 2022. So, wait until it forms a well-defined upward trend.
How much will be Cardano be in five years?
In my estimation, and as mentioned above, the price will be much higher than where it is today. Therefore, a 3x multiple means that it will be trading at about $3.
Where do I buy Cardano?
You can buy Cardano in most centralized and decentralized platforms like Binance and Uniswap. Also, Cardano is offered by several online wallets like Skrill and SoFi.
This article represents the views of the author. Cryptocurrencies are highly speculative assets and the author will not be held liable for any losses.
