There is little to be seen today of the friendliness that the crypto market managed to show after the holidays. Following yesterday’s rejection at USD 52,000, bitcoin slipped below the USD 50,000 mark again as of today. As a result, Cardano (ADA) also had to take significant losses to yesterday’s Monday, but could bring in the largest gain among the top 10 cryptocurrencies last week.
Even though the price was significantly weaker, the sixth largest cryptocurrency by market capitalization recorded great successes over the year and was able to reach some milestones in its own development. Now, the plan is in place for ADA to continue the current year’s success in 2022.
Cardano (ADA) share price: Turning point before the end of the year?
Having reached an all-time high of $3.10 in early September 2021, the share price suffered a correction of over 50%, dropping to its lowest level since the summer at $1.19. Once the curve corrected in response to the all-time high, the weak overall market further accelerated the drop. As a result, the price is back in its range from the beginning of the year, where it was between USD 1 and 1.5.
But after forming an important support at 1.2 USD since mid-December and when the price found its bottom, recovery seems to be taking place. In just one week, the price rose to the price of USD 1.38 at the time of writing. Now, investors are hoping for another bounce like the one that took place between July and September, when ADA rose from levels around USD 1.1 to its all-time high.
Nonetheless, as Ethereum and Cardano co-founder, and CEO of IOHK Charles Hoskinson recently estimated in a question-and-answer session, the year-end price does not accurately reflect the network’s developments and progress. In the video that Hoskinson published on his YouTube channel on December 06, he detailed that the network had performed very well again this year. For example, all key figures would have risen steadily since the beginning of 2020, and only the share price showed weakness.
“The good news is that each and every metric that you can use to measure the health of Cardano has been completely exceptional from January 01, 2020 to December 2021, when we will clinch the year. This includes the percentage of ADA clocked, the number of active users, progress on Project Catalyst, but also the number of social signals or account creation on Reddit, Telegram and other services, as well as the actual transaction volume on Cardano, the dApp ecosystem forming, and even venture capital investment. Every metric you can measure, meaningful or not, has improved.” Said Hoskinson.
Also Read:
- All You Need to Know about Bitcoin and Other Cryptocurrencies: Mining, Buying, Understanding
- The Secret Formula of the Profitable Bitcoin & Crypto Trading
Cardano (ADA) News: 2022 roadmap released
He discussed the token’s opportunities and risks for the next year in another video Hoskinson released 3 days ago. He also commended the project for this year’s developments, saying, “Cardano’s awareness grew exponentially.” He added that even though the integration of dApps into the blockchain has been a bit slower than hoped, 127 projects are currently active and busy developing and integrating applications.
Next year’s big step should be the open-source structure that developers can expect to find on the network starting in 2022. “We started with correctness as a top priority. Now that this correctness has been achieved, we will move on to performance, optimization and usability,” the Ethereum co-founder explains. Thus, he hopes for a continuation of the exponential growth in the next “insane year.”
According to data from analytics platform Messari, the described increase this year is not by any stretch of the imagination. While active addresses could never rise above 150,000 until the end of October, the figure exploded in November, rising to almost 500,000 in the meantime. Despite smaller values in the current month, the development signals a growth in awareness. https://messari.io/charts/cardano/act-addr-cnt
Also the number of staking addresses was able to reach a milestone this month. In a post as early as December 05, for example, a Twitter user congratulated Hoskinson that over 1 million wallets were now staking ADA. This suggests that there is a growing belief in the community that the project can succeed in the long run.
Cardano (ADA) Analysis: Long-term recovery or short-lived breath?
According to CountLikeWallStreet’s analysis, a bearish picture could be painted by the fact that Cardano’s price has been forming steadily lower highs lately. The drop of the price is only a matter of time according to him, the current rise therefore could be interpreted as a retest of the resistance. For the time being, the analyst expects a drop to values around 1 USD.
On the other hand, analyst SatoshiSacamoco expects a bullish picture in the price. So, the green weekly candles could indicate that the price is gathering again to prepare for another bull run. Therefore, it can be concluded that if the token is bought between USD 1 and USD 1.5 in the weekly chart, we can expect gains in the long term.
Moreover, the trend of the market is also supported by the RSI. Since mid-November, the indicator climbed back above the center line for the first time, and this can be seen as another bullish signal.
Cardano (ADA) Outlook: How high can Cardano rise?
Judging by data from the algorithm-based prediction of the website Walletinvestor, Hoskinson is right with his estimation and Cardano is an excellent investment in the next year as well. As a result, the token might continue to rise until the end of the year, to a peak of $1.56 on December 31. However, over the next year, it is expected to climb steadily. At year-end, a return of 117% is expected, which would imply a price of 3.24 USD. By the close of 2026, the price may even rise to 10.21 USD, a return of around 580%.
Coinpriceforecast is also bullish on ADA in its forecast, albeit according to their data, the rise may be somewhat slower. As a result, Cardano should be able to crack the 2 USD mark next year and keep rising in the years thereafter. It could thus be above 4 USD for the first time in 2027 and only leave the 5 USD mark behind in 2031. For anyone who wants to buy cryptocurrencies, Cardano might be an interesting option accordingly.
Discussion about this post