Cardano is one of the favorites among the top cryptocurrencies for many investors. It offers an interesting combination of short to medium term growth potential and long-term future potentials. But in the bear market, the ADA token has lost massively in value. Now that the crypto market is trying to recover, how high can Cardano reach now?
In this article we look at the price development of Cardano (ADA) and see what the potentials are for this token.
What is Cardano (ADA)?
Cardano is a cryptocurrency that has been around since 2017 and has been extremely successful in recent years. Cardano is a blockchain network that uses the Proof-of-Stake consensus mechanism. The blockchain is one of the most tech-savvy on the market. It combines a high level of security, is organized in a decentralized manner and is highly scalable.
What is special about Cardano is the fact that the Cardano Foundation works with scientists behind the cryptocurrency to further develop the blockchain. The blockchain will be further developed using evidence-based methods. The development follows a long-term roadmap. Cardano is often referred to as the “Ethereum killer”.
How has the Cardano (ADA) price moved in the last few months?
The ADA token is Cardano’s native token and can be purchased on various crypto exchanges. In September 2021, the price of the ADA rose above $3. Since this all-time high, the ADA price has fallen almost continuously over the past 10 months. At the turn of the year, the ADA token lost more than 50% of its all-time high.
In 2022, the ADA price continued to fall in value. It ended up priced below $0.50. The ADA price lost more than 80% of the value of its all-time high. But the losses in 2022 are lower than many other cryptocurrencies such as Ethereum. But has Cardano now stabilized or can the cryptocurrency continue to fall?
Was the Cardano Crash inevitable?
The Cardano price drop had different reasons at different times. From September to November, the price fell sharply, although most other cryptocurrencies rose. That was because the hype surrounding the launch of smart contracts has died down and Cardano’s competitors like Solana and Avalanche have received more attention.
Since November, the bear market began. Almost all cryptocurrencies fell massively in value. As a result, the ADA token also had to accept further losses. In the last few weeks we have seen the market stabilize. Cardano has also stabilized and could continue to trend sideways in the coming weeks.
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Can Cardano fall even lower?
Cardano (ADA) has already lost 80% since its value. Can Cardano fall even lower? The percentage drop value is similar to the value in previous bull markets. After the massive losses at the beginning of the bear market, the market recovered again and again in the months that followed .
Another drop in crypto prices is still possible. In this article , we have explained why the Bitcoin price could still fall below $10,000. If Bitcoin continues to fall, the other cryptocurrencies are also at risk of falling. Cardano could also fall below the $0.40 mark. More extreme falls are unlikely, however, given the history of previous bear markets.
How High can Cardano reach?
In a bear market, investors are very unlikely to make large gains in the short term. Further losses are not unlikely. Still, in the big picture, prices in bear markets are extremely low. Therefore, an investment is worthwhile for investors who think long-term.
Cardano has extreme long-term potential due to its structure and could become a strong competitor for Ethereum in decentralized applications such as DeFi and NFTs in the next few years. Rates of $10 or, optimistically, $100 are forecasted for the next few years. An investment at the current prices could pay off extremely well in the long term. However, for the current short to medium term, a safe forecast would be the psychological price of $1. This would be the first step to recovering from the latest crash.
You can also purchase these cryptocurrencies on the crypto exchanges Coinbase and Kraken .
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Source: https://cryptoticker.io/en/how-high-can-cardano-reach/