Cardano's ADA token saw a solid 2.27% price increase over the past 24 hours. The current price of $0.2520 is still down 33.89% over the past 6 months, but shows some positive momentum in the short term. In this report, we'll analyze the latest Cardano price action and market data to uncover insights and make a prediction for the coming months.
The 24-hour trading volume of $115.92 million indicates a decent amount of interest and activity around ADA at the moment. The market capitalization stands at $8.84 billion, making Cardano the #8 largest cryptocurrency by market cap.
Looking at the percentage changes over different time frames gives us a better perspective on the price trend:
- +0.33% over the past 1 hour
- +2.27% over the past 24 hours
- +2.90% over the past 7 days
- -3.38% over the past 1 month
- -33.89% over the past 6 months
The one hour and one day gains show that bullish momentum is building in the very short term. The solid 7 day increase indicates the positive price action has some sustainability right now. However, ADA is still down over the past month and past 6 months, showing the longer term trend is still negative overall.
What's Behind the Recent Cardano Rally?
The recent rally from Cardano can likely be attributed to a few factors:
First, the overall cryptocurrency market sentiment has improved slightly over the past week. Bitcoin is up 4% over the past week, which usually helps lift other altcoins like ADA as well.
Second, there have been some positive fundamental developments with the Cardano network recently. The Vasil hard fork upgrade was completed successfully in late September, which improves scalability and usability of the blockchain.
Finally, ADA may be benefiting from a relief rally after losing significant value in 2022. Long term holders could be stepping in and buying the dip, believing the asset is undervalued around the $0.25 level compared to its potential.
Can Cardano Continue Pushing Higher?
While the short term trend is positive, can Cardano continue to build upside momentum in the coming months? There are bullish and bearish cases to consider.
The bullish scenario would see ADA feeding off renewed crypto market optimism to rally back towards the $1.00 level it traded at last November. Vasil could help drive developer adoption and real world usage of Cardano, boosting its utility and value. The technical chart also shows potential for a bullish "double bottom" pattern if Cardano can conclusively move past $0.30.
The bearish scenario would have the crypto bear market and macroeconomic headwinds stifling major upside for ADA. The Fed's continued rate hikes and recession risks could lead to risk-off behavior, hurting speculative assets. Cardano may also continue lagging Ethereum and other Layer 1 blockchains in developer activity and network adoption. Upside could be limited near-term if $0.30 acts as tough resistance.
Predicting a Bottoming Pattern for Cardano in 2023
Considering all the factors, my prediction is that Cardano will trade in a wide range over the next 6-12 months as it tries to form an ultimate cyclical bottom. I expect ADA will retest the $0.30 level in late 2022 to confirm new support.
However, major upside towards $1.00 is unlikely until macro conditions improve. The $0.15 to $0.30 range may persist through much of 2023 as ADA forms a technical base pattern. Patience will be key for long term Cardano investors.
But if crypto adoption accelerates or the economy stabilizes next year, Cardano could start to regain its bullish form. The odds seem favorable for ADA to return to $0.50 - $0.75 in 2024, especially if network development continues.
How Can You Value Invest in Cardano for the Long Term?
Value investing in Cardano requires tuning out short term price fluctuations and volatility. Instead, focus on metrics of network usage and real-world adoption over a multi-year time horizon.
Monitor Cardano's ability to onboard developers building dApps, launch useful DeFi platforms, and integrate with businesses. Blockchain technology is still in the very early phases, so take a patient mentality to valuing ADA's role.
Is Now a Good Time to Swing Trade Cardano?
Trying to time short term swing trades with Cardano can be challenging in volatile markets. However, active traders may look to buy dips around $0.20 and sell rallies near $0.30 over the coming months.
Always use proper risk management with stop losses on any swing trades. And remember crypto markets can fluctuate wildly in short time periods.
Overall, the recent price surge for Cardano provides some encouraging signals after a difficult 2022 bear market. However, major upside may require more evidence of network adoption and an improvement in macroeconomic conditions over the next 6-12 months. Patient, long term investors still have an opportunity to gain valuable ADA exposure at relatively low prices.