It is true that Cardano still has a firm place in the top 10 of the global crypto market. But the latest price performance is frightening. The Cardano network’s native token is currently trading around 70% below its all-time high. Over the past year, the Coin lost about a quarter of its value. Recently, crypto bulls lost the battle for an essential support against bearish investors. This article will look at the status quo in the course of a Cardano price prediction and elicit a possible development for the year 2022.
Is the ADA a buy or are there better alternatives in the crypto market? Stay tuned as we are going to answer this question in the course of this article of Gazettely.
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Cardano (ADA) price: the key support is gone – now it depends on this support!
Over the past two weeks, Cardano lost around 14% of its value. Thus, crucial key support at around one US dollar could not hold after ADA only tested the support zone in the weeks before. The one US dollar price mark now acts as chart resistance with the sharp price losses. On the other hand, there is further support at a current price of 0.86 USD. First of all, there is a support between 0.73 and 0.76 USD. After that, there is significant support at around USD 0.70, limiting the downside potential in the ADA price.
A first stabilization in the ADA price seems quite conceivable in the short term. Cardano’s price is currently moving in no-man’s land chart. Except for a short dip after the Russian invasion of Ukraine, ADA has moved between USD 0.80 and 1.00 in the past two weeks.
Cardano price prediction: will Africa be the long-term gamechanger?
Though still relatively vague, what is exciting is the Africa focus of the Cardano network. In late February, Cardano founder Charles Hoskinson made an ambitious statement about the African continent. He said that it would be the wealthiest continent by 2050 thanks to cryptocurrencies – a bold statement.
The statements about a new Cardano credit project, which will be launched in Kenya first, are more exciting. But later, the roll-out is to take place across the entire African continent. The intention is to enable residents of developed countries to make P2P loans on the African continent via crypto stablecoins. If Charles Hoskinson has his way, this will reduce the gap between developed and developing countries. No doubt, with its young population, Africa offers future potential. It could act as a growth driver for the Cardano network. However, in the short term, Africa is unlikely to change the share price forecast; in addition, Charles Hoskinson’s targets are overly optimistic.
DeFi at Cardano: things are going better for SundaeSwap
After the Alonzo upgrade and the implementation of smart contracts in the Cardano network, the launch was definitely bumpy. After all, the DeFi boom in question failed to materialize at first. The flagship SundaeSwap was supposed to become the center for swapping the native token. But the start was accompanied by technological problems.
In mid-February, the trading volume exceeded 100 million ADA tokens. Meanwhile, SundaeSwap can already perform swaps at a level similar in time to Uniswap and PancakeSwap. Once SundaeSwap has solved the intrinsic problems, it could indicate that the Cardano ecosystem is powerful enough for the DeFi world.
Cardano network: important updates are coming!
In addition, numerous updates are coming to the Cardano network. This is because three code drops will be implemented in 2022 to improve the main network. Developers will, for example, receive tools to evaluate their resources better and optimize the development of smart contracts.
Simultaneously, in 2022, the Hydra upgrade is due, establishing a second layer in the Cardano network to handle transactions and smart contracts there. Following this, the Cardano chain could be scaled almost linearly. Charles Hoskinson, who is known for his ambitious plans, wants to process over one million transactions per second in the medium term.
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ADA accumulation doesn’t stop!
Over the past few weeks, an increasing number of ADA owners have been accumulating the altcoin. By now, Cardano addresses with ADA holdings between 10,000 and 100,000 coins own almost half of the total supply of tokens in circulation. The community seems to support the network despite its weak price performance. Meanwhile, Cardano whales with holdings ranging from 100,000 to one million ADA are reported to have collected around 16 million ADA on March 2 alone.
But Cardano is by no means the only cryptocurrency that may currently be fundamentally undervalued. Whereas the Cardano network will first have to prove its DeFi suitability and adapt fundamental developments in the coming weeks and months, Lucky Block might be able to do so more quickly. The month of March is full of potential price drivers for the new cryptocurrency LBLOCK:
- Powerful community growth continues
- Favorable entry level at the moment
- App beta testing and launch of the official version
- The first lottery draw at the end of March
- NFT collection with Lamborghini sweepstakes
- Crypto influencers draw attention to LBLOCK
Is now the time to buy Cardano?
For long-term investors, ADA could be a good buy if they are speculating on fundamental undervaluation. Finally, the Cardano network undoubtedly has the potential to carve out a place for itself in the DeFi world, despite existing problems. The ADA token, however, has no positive momentum at the moment. So far, it has not been able to form a chart bottom, which means that Cardano fans do not need to rush into anything.
Do you have anything to say regarding the Cardano price prediction? Let us know in the comments section below.
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