The price of Cardano (ADA) increased by 2% in the last 24 hours, reaching $0.436895. This represents a 1% drop in one week and a 9% drop in two weeks, with the macroeconomic backdrop of high inflation, rising interest rates and a potential global recession impacting the altcoin movement.
Despite these external pressures, the fundamentals of the ADA remain sound. And with altcoins determined to be oversold and undervalued at the moment, there’s a very good chance they could lock in some significant gains in the medium to long term.
Indeed, not only does $1 seem like a realistic mid-term goal, but the more distant future could see ADA reach $5, assuming that Cardano delivers some substantial organic growth.
Cardano Crypto price prediction
The current ADA level of $0.436895 means that it is 85.5% down from the all-time high of $3.08, set back in September 2021. This is a relatively large comedown, but it is actually slightly smaller than the pullback from the ATH seen with SOL ( 87%) , DOT (88%) and AVAX (88%).
The ADA indicator confirms that it is currently on the decline. The relative strength index (purple) has dropped to 40, while the 30-day moving average (red) is below the 200-day average (blue).
Both of these indicators signal that ADA is oversold at the moment, and is likely to experience a discount. They also suggest that, in the short term, we can expect ADA prices to rise slightly, especially after the fall.
Looking at the new benchmark, the seven-day high of $0.475899 shows that it could add 9% to the price at the time of writing. Even better, the 30-day high of $0.521808 represents a potential gain of 19.6%, assuming a proportional upswing.
Moving to the medium and longer term, Cardano’s fundamentals leave every reason to believe that ADA can achieve significant price gains in late 2022 and early 2023.
Most importantly, Cardano continues to see constant development of its capabilities and ecosystem. Last week, did an important Vasil upgrade/fork, which will improve scalability, as well as make dapp development easier and more efficient.
Vasil’s hard fork is just the latest in a fairly long line of updates, at least until last September (when Cardano introduce smart contracts), all of which contribute to making Cardano a more secure and capable network.
Judging from these numbers, the developers seem to agree that Cardano has great potential as a blockchain network. For example, the latest figures state the number of projects built on Cardano to 1,107, while 99 projects have been launched, in addition to more than 3,000 Plutus scripts (i.e. smart contracts) running on the network.
confident, The total value of Cardano is locked remains relatively low, at $78m, but this amount remains stable in the bear market of 2022. In other words, nothing left Cardano, with the decrease in TVL mainly caused by the decrease in the price of ADA.
That ADA has become the eighth largest cryptocurrency with Cardano’s TVL of only $78m is very promising. It suggests that, even with a modest increase in this TVL figure, ADA can deliver some significant results in the coming months.
To take a simple example, if Cardano increases its TVL to $1 billion, the price of ADA may rise to $5.60. This assumes that the price increases in direct proportion to the TVL, which is unlikely to happen, but it should be noted that the price of Cardano TVL and ADA increases / declines more proportionally, if not 1:1.
Between the end of March and now, Cardano’s TVL dropped from $326 million to $78 million, a 76% drop. At the same time, the price of ADA fell by about 60%.
The Next Bull Market
However, it is possible that when the next bull market comes, the price of ADA could exceed $5.
That is, the ADA high during the 2017/18 bull market was $1.18, while the (current) 2021 high is $3.08, representing a 161% increase from one record to another. Assuming a proportional jump in the next bull market (whenever), ADA will probably rise to about $8.05.
This works well, but questions remain as to when macroeconomic conditions will improve. This is difficult to answer, but what is not difficult to answer is that ADA is almost certainly undervalued today compared to its ‘true’ value.