Is it too late to buy Cardano? Crypto experts give their ADA price predictions
ADA, the token that powers the smart contract-enabled Cardano blockchain, has surged on Tuesday. The cryptocurrency, the world’s eighth largest by market capitalization according to CoinMarketCap, was last up around 8.5% on the day, with ADA/USD changing hands in the $0.39 range, giving it a market capitalization of around $13.5 billion.
ADA is getting a boost from a broader rally seen across the crypto space – Bitcoin was last up 1.7% and Ethereum around 3.0% on Tuesday, with traders relieved that the latest US inflation numbers, while still warm, was not as bad as some had feared. Cardano’s recent rally has seen it bounce back more than 13% from previous weekly lows in the $0.34s, with the cryptocurrency now just above its 200-day moving average again.
Cardano outperforms amid several bullish tailwinds
While most cryptocurrencies are trading with reasonable gains on Tuesday, Cardano is outperforming and is the best performer in the top 20. Analysts have pointed to some bullish developments related to the Cardano blockchain and ecosystem that could be driving this outperformance.
First, Cardano is set to implement a major upgrade on Tuesday dubbed the “Valentine Upgrade” that will introduce new Plutus SECP cryptographic primitives to the blockchain. According to Input Output Global (IOG), the company responsible for Cardano’s development, the upgrade is designed to “promote secure cross-chain DApp development with Plutus, while promoting blockchain interoperability”.
Elsewhere, Cardano’s new USD-pegged stablecoin Djed, which was created by IOG and Coti and launched on the blockchain a few weeks ago, continues to see impressive growth. There is now a circulating supply of 2.239 million DJED, backed by 30.89 million ADA tokens, which now has a market capitalization of around $12 million. That means a safety ratio of around 540%, according to the Djed website.
New return-generating opportunities thanks to Djed within the small but growing Cardano Decentralized Finance (DeFi) ecosystem have helped Cardano’s Trade Value Locked (TVL) more than double to around $130 million since the start of 2023. Cardano’s TVL remains small – Cardano ranks as on the 28thth cryptocurrency by TVL. But the growth is promising, and Cardano may well start climbing the TVL rankings soon as Djed gains further traction.
Some analysts speculate that a sign that these increased inflows may be coming can be seen in chain data presented by crypto analytics firm Santiment. According to a recent blog post from the firm, ADA has seen a massive increase in whale transactions since the beginning of February. So far this month, there has been a daily average of 1,700 transactions with a USD value of $100,000 or more, up from only around 300 in January.
Where next for Cardano (ADA)?
If ADA can hold north of its 200DMA, this opens the door to a retest of previous monthly highs in the mid-$0.41s. ADA will then face significant resistance in the $0.4250-$0.44 range, but if the broad crypto rally and positive trends in Cardano’s DeFi ecosystem continue, a break above this range and a pullback towards $0.50 should not be ruled out.
Experts give their ADA price predictions
Crypto-focused YouTuber Mind Math Money believes that the more times Cardano tests resistance in the $0.4250-$0.44 range, the more likely it becomes that the cryptocurrency could break north. If ADA can muster a strong daily candlestick close above this area, Cardano could push quickly toward $0.68, he continued, citing a lack of resistance in the meantime to prevent the move. In the longer term, Mind Math Money believes Cardano is likely in a trend to move back above $1.0, which he says was a key long-term resistance area in the past.
Is it too late to buy ADA?
Asking if it is too late to buy an asset is never the right question. The answer is always never. The right question is whether an asset should be bought or not. And it depends on how an investor assesses his long-term outlook for price development.
If you consider ADA likely to rise significantly in price in the current years, based on your own research, it’s probably worth buying something. If not, stay away.
Buy ADA now
ADA options to consider
As discussed above, ADA’s short-term outlook looks pretty good. But traders should still always be looking to diversify and may want to consider other tokens with high potential, such as those sold in pre-sales promising upcoming crypto projects. We’ve reviewed some of the top contenders in this list of the top 15 cryptocurrencies for 2023, as analyzed by CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section contains insights from crypto industry players and is not part of the editorial content of Cryptonews.com.
