Its price ADA has dropped by 6.5 percent over the last 24 hours and has moved downwards to $0.428011. The drop is similar to the market, which has seen it drop by about 6.6% in the same period of time as the ongoing concerns about the rate of the inflation rate, interest rates, and the overall state of the economy continue to fuel negative investor mood.
However, despite the decline of today, ADA continues to boast solid fundamentals. Cardano’s developers recently introduced the crucial Basil upgrade, which brought many enhancements to its mainnet. These improvements will attract potential investors and users.
In addition, with more than 1,000 projects that are based on Cardano, It’s quite possible that all the elements are there to allow ADA to rise up to higher levels when conditions are more favorable.
Cardano Crypto Price Prediction
at $0.42801, ADA is also down 3% in the last week and 8.8% over the last 14 days. It’s also down 86% from its record high at $3.09 (set at the end of September in 2021) which is a decline in percentage that is approximately the same amount as the decreases seen with other layer-one altcoins (e.g. SOL is down 87%, whereas AVAX and AVAX are both down 88 percent).
As for indicators, the ADA’s relative strength index (purple) has fallen to 50. This is a sign of overselling and undervaluation of ADA as the low moving average for 30 days (red) in comparison with the 200-day (blue) indicates that ADA is close to a bottom.
In essence, the technical indicators alone could be a sign that ADA is likely to see to rally at some point or other. The most difficult aspect of this is, however, the global economy, which is in a volatile state, causing a decline in stock prices and the mood of investors.
Being an altcoin ADA is on the cutting edge of these negative perceptions. Similar to altcoins that are major that have fallen, ADA has seen a higher percentage of the decline of its ATH than the more safe bitcoin, but the positive side is that it is likely to rise more quickly if the market shifts in a positive direction.
From the current price, it would require a 133.3 percent increase is required for it to hit $1. This won’t likely be a quick process however, based on the reality that $1 is 1/3 of its prior record-setting high, it’s definitely possible in the medium- to long-term.
In reality, Cardano continues to witness the kind of constant growth that could make it a real rival to Ethereum. As we said it implemented the Vasil upgrade last week, which should increase the network’s scalability as well as efficiency, as well as make the process of app (decentralized application) development simpler.
This is a significant update along with the updates that date from last September (when it introduced smart contracts) and perhaps even longer it’s creating Cardano an even more secure and valuable network.
This is evident in the number of projects based on blockchain technology as of the moment, with the latest count at 1,107. In the meantime, there are 99 projects that have been launched, and there are more than 3000 Plutus scripts (i.e. the equivalent of smart contracts for Cardano) operating in the system.
Of course, Cardano’s total value is locked in is still relatively low at $76 million. It’s also worth pointing out that this figure has been relatively constant in the current bear market which is a sign that users and projects haven’t departed the network in turbulent times, with the decline being largely due to ADA price drops.
Back-of-the-envelope calculations indicate that the case could be made if Cardano was to raise the size of its TVL by $1 billion (Ethereum’s at $30.9 billion) The price for ADA could go up to $5.60. Naturally, the price of ADA wouldn’t increase in the same way as TVL but it would be in close proximity, suggesting that the possibility of an ADA cost of just $1 would be quite feasible with Cardano’s current increase in growth.
Global Macroeconomics
However, at the moment, Cardano is unlikely to experience a major increase in usage and acceptance of its platform. In fact, Ethereum, thanks to its transition to proof-of-stake hasn’t seen any kind of growth, with the current state of the global economy being the main reason.
At the moment in the current economic climate, with high inflation and the threat of recession on the horizon many prospective investors and users are considering building on layer-one blockchains like Cardano or Ethereum. Plans for development and investment may be put on hold ( as seen with gaming and NFTs) therefore it’s not realistic to predict massive growth in the near future before things pick up.
If they succeed, Cardano is certainly in an ideal position to profit from a renewed sense of optimism and expansion.
