Cardano (ADA) entered the market back in 2017 as a third-generation alternative to Ethereum. The project’s innovative proof-of-stake (PoS) framework proved to be safe and efficient.
This transformed it into the biggest PoS asset as of yet. Today, ADA holds a capital of more than $17 billion as of this writing. Nonetheless, ADA has not been immune to the bear conditions currently ruling the cryptocurrency market.
Reports suggest that the entire crypto market has lost more than 55% of its capital since the start of 2022. Even so, Cardano rallied 10% in the early days of June, intriguing investors once again.
This article will provide an overview of ADA and its performance during the bear market. It will also analyze different factors that influence the price of ADA and provide estimated projections for the rest of 2022 and beyond.
Cardano was designed to help developers create decentralized applications in a scalable environment. This includes tokens, decentralized finance (DeFi) tools, and similar tools. In a practical sense, Cardano allows developers to:
Even during a bear crypto market, ADA remains one of the top 10 cryptocurrencies out there. It features a great technical foundation, a supportive community, and a skilled team. This is the reason why many predictions are still bullish on the coin.
As of June 2022, ADA is bouncing around $0.50 in major exchanges like Binance. This comes after the coin hit an all-time high of more than $3 in September of 2021.
To put it in perspective, the coin’s all-time low was $0.0193, registered back in March of 2020. Its biggest drop-off occurred almost two years later. In January of 2022, ADA fell as much as 45% in a 48-hour span.
Although it climbed back above $1 in February and April, it was unable to regain momentum after either surge. This aggravated the downtrend, putting it at today’s $0.50 support. As of this writing, traders could buy each Cardano coin for just over 39 INR.
Before going any further, remember that it’s crucial to create a safe environment before trading. Traders should take additional precautions to ensure that their accounts are safe. This includes the use of an antivirus solution and VPN for PC as well as mobile devices.
As for ADA, CoinPedia experts remain cautious about the coin’s ability to thrive in the rest of June and July. Cardano has been under the market’s influence since the early days of 2022. Daily chart analysis reveals that the coin is in a falling wedge pattern.
With that in mind, it doesn’t appear that Cardano will plummet more than its current value.
This may be a signal that ADA could be making a breakout run and hit north of $0.75 soon. If this materialized, many pundits see the coin making a run at $0.95. That said, the $0.95 mark is likely unsustainable, making $0.75 a safer bet.
From that point onwards, Cardano may reach a high of $1.05 in Q3 of 2022. On the contrary, the projected low is around $0.65, after which the coin will level out at close to $0.85. The rest of 2022 will seemingly follow similar patterns.
Bear predictions for 2023 indicate that ADA will have a floor close to $1.01 in 2023. Bulls, on the other hand, are predicting that ADA will reach a high of almost $1.60. If the latter trajectory materializes, ADA should be hovering close to $10 by the end of 2025.
The values of the Cardano network and its native coin, ADA, are intertwined. This means that there are many different variables that can impact the network’s performance and the coin’s value. These factors include, but are not limited to the following.
One of the most fascinating things about cryptocurrencies is their ability to change and improve over time. Cardano is no exception as its developers often introduce new features through hard forks.
The next hard fork has been postponed, so it will take place after June 2022. But, this anticipated update can significantly change the outlook of the coin.
An economic recession, legislative pressure from national governments, and the demand for sustainable mining practices. All of these are variables that will help determine ADA’s growth over the next few years.
The performance of Bitcoin and Ethereum will also sway the trading price of Cardano in any given direction.
Input Output Global, the brand responsible for Cardano, recently bolstered the outlook of the coin through two key announcements. The first is the introduction of a new wallet known as Lace, an intuitive solution for new users.
Secondly, Cardano is launching the EVM tool, which will help users develop solidity apps from scratch or migrate current projects.
Disclaimer: This article is published in association with Naomi Hodges and not created by TNM Editorial. Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.
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