Will Ada soar to $1?

Cardano price has made a slow recovery in the past few weeks. ADA/USD has jumped by more than 50% from its lowest level in May this year. It is now trading at $0.59, bringing its total market cap to about $19 billion. 

Cardano Vasil upgrade

Cardano, like other cryptocurrencies, had a difficult performance in May this year. It initially plummeted to a multi-month low as investors worried about contagion following Terra’s crash. Because of its size, investors worried that Terra’s crash would be equivalent to Lehman Brothers. 

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Also, there were rising concerns about the Federal Reserve’s extreme hawkish tone. In May, the Fed decided to hike interest rates by 0.50%, the biggest increase in about 20 years. At the same time, officials signaled that they will continue hiking rates and start quantitative tightening. 

Another challenge for Cardano is that its ecosystem is still unimpressive. For example, there are only a handful of DeFi applications in its ecosystem that have a total value locked of about $134 million. This means that its ecosystem is smaller than other coins that have a smaller market cap than Cardano like Optimism, Near Protocol, Waves, and Arbitrum.

Looking ahead, the main catalyst for the Cardano price in June will be the upcoming Vasil hard fork. This upgrade will be the biggest step in Cardano’s ecosystem since last year’s Alonzo hard fork. It will boost the network’s security and throughput.

Still, there are concerns about whether the upgrade will draw developers to Cardano. In the past few months, the developers have insisted that there are thousands of developers building in the ecosystem. 

Cardano will also react to the upcoming interest rate decision by the Federal Reserve. Analysts expect that the bank will hike interest rates and signal that more are to come. Most importantly, it will react to the performance of American stocks.

Cardano price prediction

On the hourly chart, we see that the Ada price is crawling back. It remains between the second and first support of the Andrews Pitchfork tool. This is a sign that bears are still in control. At the same time, it is slightly below the 38.2% Fibonacci retracement level while the price has moved above the 25-period and 50-period moving averages. 

Cardano has also formed a small ascending channel that is shown in black. Therefore, there is a likelihood that bears will prevail in June and push the price to about $0.50.