Cardano Price Forecast as ADA Becomes One of the Best-Performing Assets in the Market – Are Whales Buying?

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Simon Chandler

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Simon Chandler

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Simon Chandler is a Brighton-based writer and journalist with over ten years of experience writing about crypto, technology, politics and culture. He has written for Cryptonews.com since late 2017,...

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October 23, 2023

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The Cardano price has spiked by an impressive 9% in the past 24 hours, reaching $0.374914 as the cryptocurrency market rises by 1% within the same period.

ADA’s current price means that it has risen by 9% in the past week and also by 13% in the past fortnight, although it’s down by 6% in the last 30 days.

However, with Cardano’s total value locked in steadily rising, and with the Djed stablecoin witnessing increasing demand, it’s likely that ADA will continue to witness steady growth in the coming months.

This is made more likely by the fact that ADA is significantly undervalued, with today’s rally likely caused by bigger investors buying the altcoin at a discount to sell on later.

Cardano Price Forecast as ADA Becomes One of the Best-Performing Assets in the Market – Are Whales Buying?

ADA’s chart suggests that today’s rally is likely to continue in the near future, given that its indicators are still nowhere near being in overbought positions.

Its relative strength index (purple) has jumped from 30 at the start of March to almost 60, revealing rising buying pressure that probably won’t fade away until it tops 70.

At the same time, ADA’s 30-day moving average (red) is still under its 200-day average (blue), and hasn’t even begun rising yet.

As such, there’s plenty of momentum left for ADA, which is currently battling a resistance level of $0.38.

If it breaks this price, it could see further gains, something made likelier by the fact that it has been undervalued and oversold for the best part of the year.

This is probably the underlying reason for today’s rally, with there being no obvious development or piece of news to push ADA ahead of other coins at the moment.

And despite the clear rally today, there’s no reliable data to suggest that whales have been buying up the altcoin, even if its big price rise would suggest this.

Still, ADA is expected to continue its steady rise because of Cardano, which itself continues to witness more adoption and usage as a layer-one smart contract platform.

Indeed, its total value locked in has risen to $134 million, up from $100 million at the start of February and $49 million at the start of 2023.

This offers an indication of just how quickly Cardano’s ecosystem of apps is growing, with the platform now counting over 1,200 projects building on its network, as well as over 110 already launched.

ICYMI: the must-read digest of the week’s development highlights. Check out the #Cardano development update and stay in the know. Now live and ready for your reading pleasure on #EssentialCardano. https://t.co/1JoZhNep6q

— Input Output (@InputOutputHK) March 19, 2023

On top of this, work in growing its network continues apace, with Cardano often ranking near the top of platforms for GitHub development activity.

GitHub Daily Development Activity:

#1: 1169 Polkadot / Kusama
#2: 671 Cardano
#3: 648 Internet Computer
#4: 562 Status
#5: 411 Decentraland
#6: 408 Hedera
#7: 397 Cosmos
#8: 381 Audius
#9: 381 Ethereum
#10: 368 ChainLink pic.twitter.com/NaGKQ5dyxs

— ProofofGitHub (@ProofofGitHub) March 22, 2023

A big part of the reason why Cardano has been steadily growing in recent months is the Djed (DJED) stablecoin, which launched in February.

So far, Djed’s reserve has taken 33.4 million ADA out of circulation, and has witnessed growing demand amid issues with USDC and other stablecoins.

And needless to say, the more DJED is issued, the more ADA will be used as a reserve currency.

In turn, this will result in a shrinkage in ADA’s supply relative to demand, meaning that steady price rises are likely to follow as Djed grows.

Cardano has also benefitted from a number of updates in recent weeks, including an upgrade from February that enhances Cardano’s interoperability with other chains.

Interoperability is key for blockchain growth. As more DApps are built on #Cardano, it is essential that they are not siloed to just one ecosystem, enabling users to interact with different blockchains and access a wider range of services.

2/4

— Input Output (@InputOutputHK) February 14, 2023

Along with Djed and its growing ecosystem, interoperability with Ethereum, Bitcoin and other chains points to the growing use of Cardano in the future, which can only be good for ADA’s price.

For this reason, there’s a real possibility that ADA could return to $1 by the end of the year, although analysts are, on average, opting for a 2023 price target of $0.459, which seems well within reach at the moment.

Buy ADA Now

Is Now a Good Time to Invest in ADA?

Given that ADA remains undervalued, it’s certainly a good time to invest in the altcoin, although it may take several months (if not longer) for the token to witness really big spikes.

For this reason, traders may prefer to look elsewhere at the moment, with numerous other high-potential tokens promising big gains in the short- as well as long-term.

And to help with decision-making, the Cryptonews Industry Talk team has assembled a selection of the top 15 cryptocurrencies to keep an eye on in 2023.

The list is updated weekly with new altcoins and ICO projects.

^{Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.}