ADA Coin Price Prediction
Making an ADA coin pricde prediction is tough right now. Cardano's coin price fell 11% to $0.66 on Monday, 9 May, 2022, meaning it has dropped 35% in the past month. This was despite having a strong run in March, with prices reaching as high as $1.21.
There are several reasons attributed to the change in fortunes from April. Notable is the re-emergence of Covid-related lockdowns in China, with authorities in China placing an international travel ban on Chinese citizens, preventing them from travelling for non-essential reasons. Shanghai, the financial hub of China, has been on lockdown since the end of March, with many people forced to stay at home without access to food, medicine, and other vital supplies. More than 30 cities across China are now under full or partial lockdown, affecting 220 million people. Travel has further been discouraged by a reduction in the issuance of travel documents which has fallen 6% since 2019. Passport renewals for non-essential travel also stopped in February.
Many people that invest in cryptocurrencies believe that it is the latest version of gold, especially Bitcoin. However, while gold prices have risen 3% in 2022, with the S&P falling by 16%, the same cannot be said for Bitcoin. It fell as low as $25,402, matching its 52-week low. This resulted from a mass sell-off due to the instability of TerraUSD (UST), which failed to hold its 1-to-1 peg with the US dollar and fell as low as $0.45. In turn, the downward selling pressure in the stock market has been due to high US inflation and the aggressive countermeasures of the Fed, with CPI rising by 8.3% in a year and inflation being at its highest since 1981.
Earlier in the month, the Fed had raised interest points by 50 bps to a target range of 75% and 1%, with the Fed Chair announcing a further 50 bps is on the cards over the next two FOMC meetings. They will also begin allowing $30 billion in US Treasuries and $17.5 billion in mortgage-backed securities to come off its balance sheet starting in June. Russia’s invasion of Ukraine in February also sparked a mass sell-off in the stock market, which in turn affected cryptos.
Recently, specifically related to Cardano, there was an increase in its Block size on the main net to improve the transaction performance of the dApps. However, this did not seem to affect the price.
Number of ADA Holders Increasing
According to crypto experts, more than 500 projects are currently built on the Cardano blockchain. The token distribution is almost 90% retail, with this number likely to increase. With the number of long-term Cardano (ADA) holders growing by 32% in February, Dr. Shweta, the owner of KIBC1 and 2, further predicts that the coin value of ADA could increase by another 25% as crypto investors stock up on their Cardano holdings.
An Analyst from Capital.com warned that Cardano investments should be taken with caution. Cryptocurrencies are currently less used as a hedging instrument, and a favourable market for cryptocurrencies, including Cardano, can only occur when the economic and geopolitical situation in the world starts to improve. This, alongside the fact that it is very volatile, makes it hard to predict future performance.
The current prices are, from a technical point of view, a good opportunity to buy cheap. However, it is on a bearish run in the short term. Only three indicators give bullish signals and 28 bearish as of the week commencing 9 May.
ADA Price Prediction
Wallet investor believes that ADA coin price prediction will reach $1.52 in a year and $4.6 by May 2027. Digital Coin Price also believes that the price will rise as high as $0.86 in 2022, $0.97 by 2023, $1.28 in 2025 and $3.06 in 2030. However, Price Predictions ADA price is the most optimistic, with the average price expected to hit $1.15 in 2022, $1.62 in 2023, $3.56 in 2025, $21.35 in 2030, and $32.25 in 2031.
Since its release, ADA has had an ROI of 2,967%, according to CoinMarketCAP. From a historical point of view, ADA crypto price traded in a sideways range until around November 2017, when the price rose from $0.029 on 20 November to $0.119 on 28 November, representing a 310% increase. ADA coin price continued to rise and closed 2017 at $0.719. By 4 January 2018, the crypto's price had reached $1.11, but due to its volatile nature, it declined by 97% to close the year at $0.041. It remained under $1 in the years 2019 and 2020, respectively. ADA regained momentum in 2021, went as high as $1.48 on 15 April, and reached $2.30 on 16 May. It fell to $1.98 on 21 September and fell again to $1.21 on 10 December. It closed the year at $1.31.
SundaeSwap Cardano Protocol Launches
Cardano has continued in its volatile nature in 2022, firstly by reaching $1.63 on 18 January following the launch of SundaeSwap. SundaeSwap is an automated market maker decentralised exchange which runs on Cardano and allows users to trade, stake, and lend tokens on the platform. Fees are low and liquidity providers can earn a return on their deposits. Following this launch, it declined to $0.75, as did the entire stock and cryptocurrency market following Russia’s invasion of Ukraine. ADA is currently trading at 0.54 as at the time this article was written, with a market capitalisation of 18.5bn.
Therefore, to conclude, even though the crypto price of ADA, like most cryptocurrencies and stocks now, seems to be on a bearish run, in the long term we expect it to resume its bullish run and continue to rise as it has done historically since its exception.
Author: Emmanuel Baiden
7 years experience within the financial services sector most notably in Sales, Trading, research and writing articles within the crypto space. I have a bachelor's degree in International Business and a Master's in Investment and Risk Finance . I am also an associate member of the Chartered Institute for Securities and Investment.