Cardano Price Prediction: ADA Rises 16% in Price Boost

Cardano (ADA) has surprised the crypto market with an impressive comeback, reaching a new high not seen in over three months. After a significant double-digit price surge, ADA has caught the attention of investors and crypto enthusiasts alike. In this Cardano Price Prediction article, we’ll dive into what’s driving Cardano’s recent rise, how it compares to previous trends, and what this might mean for its future.

How has the Cardano (ADA) Price Moved Recently?

ADA/USD Daily Chart- TradingView 

Today, Cardano (ADA) is priced at $0.426188, with a 24-hour trading volume of $1.84 billion, a market cap of $14.90 billion, and a market dominance of 0.58%. Over the last 24 hours, ADA’s price has risen by 15.43%.

Cardano’s peak price was on September 2, 2021, when it hit an all-time high of $3.10. Its all-time low was recorded on October 1, 2017, at just $0.017354. Since reaching its highest point, the lowest ADA price recorded was $0.234392, while its highest since then was $0.806108. Current sentiment for Cardano’s price is bullish, with the Fear & Greed Index showing a “Greed” level of 69.

At present, Cardano has a circulating supply of 34.96 billion ADA, out of a maximum supply of 45 billion ADA. Its yearly supply inflation rate stands at 3.36%, with an additional 1.14 billion ADA created over the past year.

Why Is the Cardano (ADA) Price Up?

Cardano’s recent price surge seems to be riding on a few strong trends in the crypto market. One major factor is the overall optimistic mood among investors. Ever since Donald Trump’s U.S. election victory, the market has turned bullish, driving up prices for not just ADA but also heavyweights like Bitcoin, which recently hit an all-time high above $76,800. This broad upward momentum is likely boosting confidence in ADA, drawing more investors to the asset and helping it post solid gains.

The Federal Reserve’s recent decision to cut interest rates by 0.25% also plays a part. Lower interest rates make borrowing cheaper, often sparking more interest in riskier assets like cryptocurrencies. 

With borrowing costs down, both everyday and institutional investors may be more willing to take a chance on assets like ADA, aiming for high returns while rates stay low. This shift could be a supportive tailwind for ADA’s current rally.

Image Source: IntoTheBlock

On top of these broader trends, Cardano’s on-chain indicators suggest some promising activity. The “In the Money” metric, which measures the number of ADA holders currently making a profit, recently rose by 13%. Currently, 36% of ADA holders are seeing gains, a notable improvement compared to the nearly zero percent who were profitable back in August when ADA fell below $0.30. This boost in profitability might be attracting more interest, with new investors possibly seeing ADA as a strong short-term bet.

Looking forward, if the economic environment continues to support riskier assets and Cardano’s metrics stay positive, we could see further growth. However, changes in interest rates or a shift in overall market sentiment could influence ADA’s momentum. For now, Cardano’s fundamentals seem strong, and if this bullish climate holds, ADA might have more room to rise.

Cardano Price Prediction: How high can the ADA Price go?

Cardano’s recent performance and favorable metrics have fueled optimism about how high ADA’s price might go, though its path to new highs will likely depend on a combination of market conditions, investor sentiment, and key technical factors. 

Over the past year, ADA has gained 16%, and its current position above the 200-day simple moving average (SMA) is a positive technical signal. Trading above the 200-day SMA typically indicates an uptrend, suggesting that ADA may have the momentum to reach higher levels if bullish conditions persist.

ADA's consistent performance, including 15 green days in the past 30 (or 50% of the month), points to steady interest from investors and market participants. 

With high liquidity relative to its market cap, Cardano offers enough trading volume to support sizable transactions without significantly impacting price—an appealing quality for institutional investors and large traders. 

Additionally, ADA has outperformed 63% of the top 100 cryptocurrencies over the past year, although it still trails behind giants like Bitcoin and Ethereum. This level of resilience amid fierce competition speaks to ADA’s staying power and potential to attract more investors seeking alternative options beyond the largest tokens.

However, despite these strengths, ADA remains 86% below its all-time high of $3.10. This significant gap suggests that while Cardano may experience further gains, reaching or exceeding previous highs could be challenging, particularly with the yearly inflation rate at 3.36%, which gradually increases ADA’s circulating supply. 

For ADA to close in on its all-time high, it would require a broader surge in market interest and likely an increase in ADA’s usage within the blockchain ecosystem to counteract inflation.

Looking ahead, if ADA continues to hold above the 200-day SMA and market conditions remain favorable, Cardano could aim for incremental targets around $0.70 to $1.00 in the medium term, assuming steady demand. 

However, reaching beyond $1 would likely require strong bullish catalysts, such as major technological developments or widespread adoption within decentralized applications (dApps) and finance (DeFi). While a full return to all-time highs may take time, ADA’s resilience and positive technical indicators suggest that it could gradually work its way up if the broader crypto market remains supportive.