Where It Should Be: Crypto Analyst Remains Firm On $1.7 Prediction For Cardano (ADA)
Investors and analysts are trying to predict Cardanos (ADA) prices future performance. As the price continues to show red numbers, a top crypto analyst considers that ADA is right where it should be.
Cardano Loses 10th Spot Against Telegrams Toncoin
Cardanos recent spotlight has highlighted its disappointing price performance and lack of appeal for traders. Despite its technology and strong community, the ecosystem lacks the activity and demand of other chains like Solana.
Recently, Charles Hoskinson defended the project, stating that Cardano always wins, referencing a poll ranking the best Layer-1 networks. Moreover, Hoskinson took another jab at Solanas network problem after its recent transaction failure rate reached 75%.
Nonetheless, on Tuesday, ADA lost its spot in the top ten cryptocurrencies after being flipped by Toncoin (TON). According to CoinGecko data, Cardanos market capitalization of $20.1 billion was surpassed by TONs $23.3 billion market cap. As a result, ADAs spot as the 10th largest cryptocurrency by this metric was taken by TON.
ADA drops to be the 11th biggest cryptocurrency by market cap. Source: CoinGecko
Per CoinMarketCap data, ADA remains in the top ten cryptocurrencies, ranking ninth on the websites list before being flipped.
ADA Is Where It Should Be
Last week, crypto analyst Ali Martinez revealed that ADAs whale activity was experiencing a lull. To the analyst, whether this was a signal of further price consolidation or a drop remained to be seen.
Some believe that TONs overtaking of Cardanos place on the list highlights some of the ecosystems problems. Martinez reiterated his prediction made around the time Bitcoin registered its latest all-time high (ATH) of $73,373. At the time, the analyst considered that ADA resembled the pattern observed from 2018 to 2021.
During the period observed by Martinez, Cardanos token went through a long consolidation period, with the price hovering between $0.026 and $0.082. After breaking out of this resistance level, ADAs price surged to $0.35 in the following weeks before continuing its upward trajectory to its ATH of $3.09.
According to the analyst, if that fractal continued during the following weeks, investors should anticipate ADA consolidating in the $0.55 to $0.80 range. This would be followed by a surge to the $1.7 support level.
After another consolidation period, the stage would be set for the tokens price to breakout to $5, the analyst considered.
Almost a month later, the analyst considers that nothing has changed for Cardano. Martinez reaffirmed the price consolidation between the $0.55-$0.80 range and subsequent breakout, as ADA is exactly where it should be.
Despite the analysts optimistic forecast, ADAs price of $0.5762 remains 81.5% below its 2021 ATH. At writing time, the token dropped 5.4% from the previous day. Additionally, its performance has decreased by 3.6% and 22.3% in the weekly and monthly timeframes.
However, the tokens market activity has surged 6.6% in the last 24 hours, with a daily trading volume of $502.1 million.
ADA's performance in the 1-day chart. Source: ADAUSDT on Tradingview
Featured Image from Unsplash.com, Chart from TradingView.com
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Source: NewsBTC.com
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