Cardano Crypto Price Prediction – ADA Ready To Breakout Against $1?

ADA’s price has fallen 6.5% over the past 24 hours, with the altcoin falling to $0.428011. This decline is broadly in line with the market, which is also down around 6% over the same period as continued fears about inflation, interest rates and the global economy continue to weigh on investor sentiment.

Despite today’s decline, ADA continues to exhibit strong fundamentals. Cardano developers recently made the major Basil upgrade, which brings a number of improvements to the mainnet that will make it even more attractive to potential users and investors.

And with more than 1,000 projects built on top of Cardano, it is very likely that when conditions become more favorable, all the ingredients are in place to take ADA to a higher level.

Cardano crypto price prediction

At $0.42801, ADA is down 3% over the past week and 8% over the past 14 days. It’s also down 86% from its all-time high of $3.09 (set in September 2021), a percentage drop more or less the same size as the drop of other tier-1 altcoins (e.g. SOL’s decreased 87%, while DOT and AVAX are below 88%) experienced.

As for the indicators, ADA’s Relative Strength Index (purple) is down to 50. This indicates that ADA is oversold and undervalued, while the low 30-day moving average (red) relative to the 200-day moving average (blue) shows, that the ADA is close to a bottom.

Basically, the technical indicators alone suggest that the ADA should see a decline sooner or later. The complicating factor, however, is the global economy, which remains in an uncertain state, dragging down stock markets and investor sentiment.

And since ADA is an altcoin, it is on the verge of such negative sentiment. Like most other major altcoins, it has fallen from its ATH by larger percentages than the relatively “safe” bitcoin, although the downside of this is that it can recover more strongly when the market moves in a more positive direction.

From its current levels, it would take about 133.3% increase to reach $1. Of course, this won’t happen overnight, but given that $1 is only a third of its previous record high, it’s certainly possible in the medium to long term.

In fact, Cardano continues to experience the kind of constant development that could make it a real rival to Ethereum. As mentioned, the Vasil upgrade was implemented last week, which will improve the scalability and efficiency of the network while making it easier to develop Dapps (decentralized applications).

This is a big update, and combined with updates going as far back as last September (when it introduced smart contracts) and even further, it looks to make Cardano a more robust and useful network.

This is reflected in the number of projects being built on the blockchain; at last count it is 1,107. At the same time, 99 projects have already been launched, while over 3,000 Plutus scripts (i.e. Cardano’s equivalent of smart contracts) are running on the network.

Of course, Cardano’s total value remains relatively low at $76 million. However, it is worth noting that this value has remained fairly constant throughout this year’s bear market, meaning that projects and users have not fled the network during hard times, but rather that the decline has largely been a result of ADA price drop.

Rough calculations suggest that if Cardano increased its TVL to $1 billion (Ethereum’s TVL is currently $30.9 billion), the ADA price could go as high as $5.60. Of course, the price wouldn’t increase in direct proportion to TVL, but it would be close, meaning that an ADA price of $1 is very achievable given Cardano’s growth.

Global Macroeconomics

For now, however, it is unlikely that Cardano will see a truly significant increase in adoption and use of its network. Even Ethereum has not seen growth with its shift to proof-of-stake, largely due to the state of the global economy.

With high inflation and the looming recession, few potential investors and users are interested in building on layer-1 blockchains like Cardano and Ethereum. Investment and development plans may have been put on hold (as seen with gaming and NFTs), so it would be overly optimistic to expect massive moves before conditions improve.

If so, however, Cardano is certainly in a good position to capitalize on renewed optimism and growth.

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