Cardano Crypto Price Prediction – Can ADA Reach $5 By 2023?
The price of Cardano (ADA) has risen by 2% in the last 24 hours, reaching $0.436895. This represents a 1% drop in a week and a 9% drop in a fortnight, with the macroeconomic backdrop of high inflation, rising interest rates and a potential global recession weighing on the altcoin’s movement.
But aside from these external pressures, the ADA’s fundamentals remain in good shape. And with the altcoin’s indicators pointing to oversold at the moment, there’s a very good chance it could lock in some significant gains in the medium to long term.
In fact, not only does $1 seem like a realistic mid-term goal, but in the longer term, ADA could reach $5, assuming Cardano continues on its current trajectory.
Cardano Crypto Price Prediction
ADA’s current level of $0.436895 means that it is down 85.5% from its high of $3.08, set back in September 2021. This is a relatively large drop, but it is actually slightly smaller than the decline of other coins that SOL (87%), DOT (88%) and AVAX (88%).
ADA’s indicators confirm that it is at low ebb right now. Its relative strength index (purple) has fallen to 40, while its 30-day moving average (red) is well below its 200-day average (blue).
Both of these indicators signal that ADA is oversold right now and going at a discount. They also suggest that in the near term we can expect to see the ADA price rise slightly, especially after recent falls.
Looking at recent benchmarks, the seven-day high of $0.475899 suggests it could add a 9% upside from the price at the time of writing. Even better, the 30-day high of $0.521808 indicates a potential gain of 19.6%, assuming a proportional rally.
In the medium and long term, Cardano’s fundamentals give every reason to believe that ADA could enjoy significant price gains towards the end of 2022 and into early 2023.
Most importantly, Cardano continues to see the steady evolution of its capabilities and ecosystem. Last week it implemented the important Vasil upgrade/fork, which aims to improve scalability while making dapp development easier and more efficient.
The Vasil hard fork is just the latest in a fairly long line of updates stretching back at least as far as last September (when Cardano introduced smart contracts), all of which help make Cardano a more secure and capable network.
Judging by the numbers, the developers seem to agree that Cardano has significant potential as a blockchain network. For example, the latest figures put the number of projects building on Cardano at 1,107, while 99 projects have already launched, in addition to over 3,000 Plutus scripts (i.e. smart contracts) running on the network.
Of course, Cardano’s total value locked up remains relatively low at $78 million, but this number has remained relatively stable throughout 2022’s bear market. In other words, users stick to Cardano, and the decrease in TVL is mainly caused by the decrease in the price of ADA.
That ADA is already the eighth largest cryptocurrency with Cardano’s TVL at just $78 million is very, very promising. That suggests that even with a modest increase in this TVL number, ADA could make some significant gains in the coming months.
It is worth pointing out that price increases/decreases on Cardano TVL and ADA have been more or less proportional, if not 1:1.
Between the end of March and today, Cardano’s TVL fell from $326 million to $78 million, a 76% drop. Over the same time frame, the price of ADA fell by approximately 60%.
If Cardano were to raise TVL to $1 billion, ADA’s price could rise as high as $5.60. This assumes that the price rises in direct relation to TVL, which is a possibility.
The next bull market
However, it is possible that when the next bull market comes, the price of ADA could surpass even $5.
ADA’s high in the 2017/18 market was $1.18, while its (current) 2021 high was $3.08, representing a 161% increase from one record to another. Assuming a commensurate jump in the next bull market (whenever that may be), ADA would potentially rise to about $8.05.
This is feasible, although the question remains as to when macroeconomic conditions will improve.
