Some analysts would have you believe that Cardano is primed for a recovery and a recent 18% surge in the price may have encouraged that thinking.But as of today (9 December) ADA sits some 22% down from that modest 2 December peak.
Like many of the leading cryptos, Cardano (ADA), now the world’s sixth-largest cryptocurrency by market capitalisation, has had a serious downturn in its fortunes since its 2 September peak.At $1.37 it is now 56% off its all time high.
So are those analysts justified in their optimism? When, if at all, will Cardano return to its old ways and perhaps even new highs?
Let’s look at the project’s recent developments and some of the latest ADA predictions.
Cardano spikes to all-time high on smart contract launch
ADA, the native cryptocurrency on the Cardano blockchain, reached an all-time high of $3.10 on 2 September, up by 26% from its previous-all time high of $2.46 on 16 May during the broader cryptocurrency rally.The price jumped as developers InputOutput (IOHK) announced on 1 September that the Cardano testnet supported smart contracts.
The launch on the live network followed on 12 September, with the implementation of the Alonzo hard fork .
IOHK said in a statement : “By allowing Plutus scripts to be written and executed on-chain, we’ll have the backbone for a new decentralised application ( DApp ) platform, enabling numerous DApp and decentralised finance ( DeFi ) use cases – from simple swap type apps to decentralised exchanges ( DEXs ), and more complex computational programs such as Oracles and crypto-backed algorithmic stablecoins.”
Of ADA’s $54.6bn market capitalisation, a total of $32.29bn has been staked, accounting for 71.99% of the coin’s total supply, according to data aggregated by PoolTool .That could support the ADA price, as only 28.01% of the supply has not been locked.
IOHK made several Cardano crypto news announcements during the Cardano Summit in late September.
On 26 September, the COTI platform was https://iohk.io/en/blog/posts/2021/09/26/coti-to-issue-djed-stablecoin-on-cardano/ as the official issuer of djed, a new stablecoin for Cardano.
IOHK said:
Cardano also has announced partnerships with land restoration and tree planting verification company veritree to secure its records on the Cardano blockchain; e-sports and gaming platform Rival to develop NFT marketplaces; fintech venture fund UBX for a public Cardano staking pool; and AID:tech to provide technical guidance for its identity-based finance, payments and insurance products.
On 25 September, IOHK released news of a new Africa-focused Cardano fund that plans to invest $6m in blockchain projects across the continent.On 28 September, IOHK said that it has formed a strategic alliance with US-based Dish Network to explore using the Cardano blockchain across the satellite TV and mobile phone network.
On 18 November, Bitstamp, the Luxembourg based cryptocurrency exchange said it was listing ADA and trading would be able to start on 24 November.
On 23 November, the exchange eToro said it was delisting both ADA and TRX (Tron) in the US explaining enigmatically: “These changes are due to business-related considerations in the evolving regulatory environment.” Traders can still hold the coins or close their positions but new traders will not be able to open positions.
The statement added that “staking rewards will no longer be offered to US users for both assets, with the final reward payout going to users on January 15, 2022.This reward will be paid in US dollars.”
On 26 November it tweeted that there are two million native tokens/assets on the Cardano blockchain – double the figures in October.
On 1 December a Cardano subreddit user, Jem Colley, posted that Cardano (ADA) had surpassed the 20 million transaction mark without a single day of downtime in 1,522 days of the blockchain being in operation.
On 8 December Cardano https://twitter.com/Cardano/status/1467953126946734082 it had passed the milestone of 1,000,000 delegated wallets.
Cardano price retreats from highs
ADA could not sustain the price gains as traders took profits, and the price fell back below $2.50 on 8 September.The price has continued to decline, falling to a one-month low of $1.92 on 21 September.
While bitcoin and ethereum bottomed out on that date, and have gone onto strong rallies, the ADA price remains under pressure.The coin has slipped from its position as the third-largest cryptocurrency, falling behind BNB, a native coin of the Binance platform that was banned in the UK earlier this year.Several bitcoin alternatives ( altcoins ) such as AMP, avalanche, luna, and sushiswap have shed value over the past month as traders sold some of their positions to invest in the bitcoin rally.
Will they return and will new investors invest in Cardano?
The coin moved up to $2.46 on 25 September, but then slipped back to $2.02 on 29 September.It traded between $2.08 and $2.37 in October, even as bitcoin and ether approached their all-time highs of $64,000 and $4,000, respectively.By 9 Deceember the price had dropped to $1.37.
What is the outlook for the Cardano future price? Will it rise and reach new highs, or will it remain under pressure?
Cardano price prediction: will ADA rebound in the future?
At the time of writing (9 December), short-term technical analysis from CoinCodex was bearish, with 5 indicators giving bullish signals and 24 bearish signals.The relative strength index (RSI) and the moving average convergence divergence (MACD) were signalling neutral, while the Hull Moving Average and the Volume-weighted Moving Average (VWMA) signalled a sell.
The weekly moving averages were indicating ADA as a sell.CoinCodex predicted that the coin could trade at $1.52 by 14 December.
For the longer term, the Cardano forecast from Wallet Investor was more bullish, predicting that the average price could kick off 2022 at $1.735, climbing to $3.72 by the end of 2022 and by the end of 2026 hit $11.33.
The ADA coin price prediction from DigitalCoin projected that the price could average $2.51 in 2022, up from $2.03 in 2021, and climb to an average of $4.04 in 2025.It predicted that by 2028, the coin could average $6.07.
Price Prediction was more bullish than Wallet Investor and DigitalCoin, estimating that the token’s price could average $6.57 in 2025, up from $2.08 in 2022, and reach $43.77 by 2030.
It’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours, and even harder to give long-term estimates.As such, analysts can and do get their predictions wrong.
We recommend that you always do your own research and consider the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision.And never invest more than you can afford to lose.
Follow Capital.com to stay on top of the market’s latest news and technical analysis.
FAQs
There are 33.37 billion ADA coins in circulation, out of a total supply of 33.72 billion, according to data from CoinMarketCap .
The circulating supply accounts for 74% of the maximum supply of 45 billion.
Whether ADA is a good addition to your portfolio depends on your personal financial circumstances, asset diversification and risk appetite.Cryptocurrencies are highly volatile assets, making them riskier than other forms of investment.You should never invest what you cannot afford to lose.
ADA’s price will be affected by the outcome of the recent upgrades to the Cardano blockchain.
Forecasting sites, including https://walletinvestor.com/forecast/cardano-prediction%5D , DigitalCoin and Price Prediction , predict that the price could rebound and reach new highs in the future.Whether you believe those predictions is a decision only you can make.
And predictions are often wrong.
Forecasts such as those from DigitalCoin and Wallet Investor indicate that ADA could possibly reach at least $10 over the long term.Price Prediction suggests that the price could jump from could jump from $2.08 in 2022 to reach $43.77 by 2030.
Whether you believe those predictions is a decision only you can make.As always, you should be aware that the past price performance is no guarantee of future returns.
And never invest more than you can afford to lose.
Read more: Ethereum price prediction: Can ETH sustain its latest rally?.
