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Cardano Price Forecast – Can ADA Beat its All-Time High?

Tom Sheen
Last updated: | 5 min read

Cardano was one of the biggest losers after the US Consumer Price Index was released on Thursday.

ADA dipped to a 21-month low of $0.35 in the immediate aftermath of the announcement, a price that has not been seen since January 2021.

The coin has made a slight recovery to $0.37 but is still 4% down in the last 24hrs and 12.5% down in the last seven days – the second-largest amount of any coin in the crypto top 25 (Uniswap is 13% down).

Short-Term Pain for ADA

Bears have hold of Cardano and as CryptoNews analyzed earlier this week, ADA did have strong support at $0.39 but that was broken through in the wake of the CPI announcement.

Support was found at $0.34 but should another sell-off occur then a sharp downtrend to $0.25 – even $0.15 is possible in a worst-case scenario.

However, despite continued losses for the coin, ADA is deep in oversold territory, currently sitting at 26 on the Relative Strength Index (RSI). 

Speaking earlier this week ahead of the CPI, founder Charles Hoskinson said he believes crypto will eventually decouple from the traditional stock market, but that point has not come yet.

In an interview with Fox, he said: 

“I used to believe that crypto would be counter-cyclical and be a place where people would put assets when they are fearful of the global economy.

“But so far they seem to be moving in parallel with tech stocks and some more of the more standard equity markets. So that’s kind of a problem. 

“But all things considered, I think that long term the crypto markets are going to decouple from the traditional marketplaces and have their own economy similar to how energy has its own economy or these types of things. 

“It’s probably going to occur in the next 24 or 36 months. I think there’s a lot of opportunity here.”

Cardano Continues to Build

Despite the short-term struggles of Cardano, the protocol remains one of the most popular investments for both retail and institutional holders.

While the price of the coin has fluctuated throughout 2022, behind the scenes the project is still building and attracting interest from longer-term investors and large institutions.

According to data from Messari, transactions on Cardano have been steadily increasing over the past eight weeks following the successful Vasil hard fork upgrade and are at their highest level since early August.

Another Messari chart (below) also shows that Cardano is the second-most active blockchain, trailing only Bitcoin and in front of Ethereum, Litecoin and XRP.

Leading crypto investment fund Grayscale has Cardano as its largest hold – bar Bitcoin – accounting for 28% of the total fund.

That’s 6% more than its second-largest hold, Solana.

Leading crypto analyst Dan Gambardello, who has more than 300,000 subscribers on his Crypto Capital Venture YouTube channel, also believes Cardano will “thrive” in the next bull run.

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In a recent video on the protocol, he also described himself as “very bullish” on ADA and said the latest upgrades – and the upgrades to come – mark it as the “dawn of a supersonic era” for the coin.

Another influential YouTuber, CoinBureau’s Guy, also talked up the protocol – as well as Algorand (ALGO) in a discussion with Benjamin Cowen last week.

“Long-term trend-wise, I think investors — particularly institutional investors, which is obviously where Cardano is lacking in that respect — but I think any investor will look at the likes of Ethereum and Cardano in the aftermath, when interest in crypto returns, and go, ‘Well, these guys were able to execute these big upgrades, and they went flawlessly.’

And I think that is a testament to the caliber of people working on those projects, and that I think will be a big part of peoples’ due diligence in the future. So although the price hasn’t done anything, I think it’s really, really positive, for Cardano especially.” 

In their most recent weekly report on October 7, Essential Cardano revealed that while 102 projects have already launched on Cardano, a further 1,117 projects are building on the blockchain.

Cardano Price Prediction

It appears there could yet be more short-term pain on the horizon for holders of Cardano, with the coin potentially moving further down in the coming days.

However, the coin is arguably now one of the most undervalued cryptos in the space and continues to have huge potential for the future, with more upgrades set for 2023 that will make it even faster and more efficient.

If that potential is ever realized, the current low prices will mark an excellent entry point.

As previously reported here, Hoskinson remains unconcerned by short-term price action and believes Cardano will be a huge winner long-term, predicting venture capital money will flow into the ecosystem by 2024 and 2025.

He said: “We built Cardano to be the financial operating system of the world. We built it to bank the unbanked. We built it as a community to give economic identity to those who don’t have it so we can have one global fair marketplace.

“You don’t capture anything during the bull market, but during the bear market, everybody’s collapsing. All the bridges are getting hacked. All these DeFi (decentralized finance) Ponzi schemes fall apart that we keep saying are problems.

“So that’s the community we built and the ecosystem we built. Now we are enjoying the dividends of that approach.”

Green Alternative – IMPT

Cardano is known as one of the greenest crypto projects in the space, not only because it is an energy-efficient blockchain but because of conservation efforts by the Cardano Foundation – which has already planted more than a million trees.

Another green project newly launched is IMPT, which hopes to solve the climate crisis by allowing users of its protocol to earn carbon credits. The project is currently in its presale phase where more than $4 million has been raised in just 10 days. 

Presales have continued to earn investors gains in 2022 despite the bear market, with IMPT having a fully doxxed and KYC-verified team and an audited smart contract.

Read more information on IMPT in their whitepaper.

Visit IMPT Presale