Cardano is up 20% from the May swing low of $0.40. With the upcoming June hard fork, we review ADA price predictions with technical analysis.
The ADA price now is trading around $0.50 – $0.55 and converging resistance and support suggests a breakout to the upside is likely. The Cardano price is currently in a symmetrical triangle trading pattern. The capitulation wick on May 12th also suggests a support level and buying pressure around the $0.40 level.
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Will Cardano go up in 2022 after the hard fork? I take a look at the ADA price chart and do some ADA technical analysis in the video below.
On the macro-scale, the Fibonacci retracement tool reflects that the ADA price has dropped below the 0.786 level – this can suggest Cardano is oversold and undervalued.
The correction from $3.1 to $0.4 has been 87%, which could mean the bottom is near for such a strong crypto project. If we can maintain the positive momentum since the May bounce, Cardano could reach $0.67 in the coming weeks. The next ADA price target following that would be $0.77.
The most bullish ADA investors still believe Cardano can potentially flip ETH in market cap. Cardano was originally known as an Ethereum killer prior to the peak of the 2020-2022 bull market.
I believe Cardano is undervalued and that we could see a a $5 ADA price by 2025 based on simple market cycle theory and these Fibonacci extension levels.
The above Cardano price chart displays technical targets above the former all time-high of:
Whilst we may still get a lower entry price if Bitcoin capitulates to the 200 week moving average, Cardano is a solid long-term investment.
Cardano is also still generating a lot of new unique wallet addresses. This is important and shows us that this lower price point and reaccumulation range continues to on-board a lot of new investors and holders.
Bear markets usually entail very long accumulation phases following distribution. Once we enter a bull market again, we should see a lot of FOMO (fear of missing out) for Cardano.
Image via – Datastudio.google.com Cardano blockchain insights
On average, Cardano obtains around 2,000 unique wallet holders per day and would increase further in the next crypto bull run.
Cardano going back to $1 and higher in the coming months and into 2023 will feel like a huge milestone again. It is also a psychological price level, which makes it a stronger resistance.
Once we see the $1 level breached again, we should see high buying volume and investors getting back into Cardano.
Cardano is soon to have a hard fork, known as the Vasil hardfork. This is scheduled to go live on June 29th and holders have a huge amount of anticipation for this event.
The hard-fork should bring huge improvements to the ecosystem and across the smart contract platforms. The technical name of this improvement proposal is CIP-31 and CIP-33.
Effectively, this is designed to reduce transaction sizes and eliminate the time needed by smart contracts to perform normal operations. Keep your eyes peeled on the Cardano price around mid June in the run-up to that event on the roadmap.
Cardano is looking very undervalued with its current trading price at $0.5. Considering ADA is consolidating here during extreme-fear market conditions, it seems a good buy at these price levels.
This is where a long-term investment strategy can really yield strong gains – nobody has ever lost money holding Bitcoin for 800-1,200 days, and that outlook can also be applied to blue-chip assets that have stood the test of time like Cardano over the long-run.
We could assume that the return on investment (ROI) percentage per market cycle is diminishing, so it is important to buy assets like ADA and BTC as close to the bottom as possible.
When markets experience extreme fear, the logic of a typical retail investor is invalidated. Right now, we are seeing a lot of smart money accumulate this dip. From on-chain data inactive wallets are waking up again to accumulate more undervalued cryptocurrencies.
With the hard fork on the way and Cardano being well under $1 again, this makes ADA a promising cryptocurrency to potentially buy the dip.
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This article was written for Business 2 Community by Jacob Bury.
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Jacob is a video content producer on the Youtube channel ‘Jacob Crypto Bury’, and a semi-professional trader.… View full profile ›
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