Has Cardano (ADA) Found Its Bear Market Bottom? Analyst Forecasts Price Reversal Soon

The Cardano (ADA) network has demonstrated remarkable growth, evolving into a mature platform with a market capitalization of $10 billion and over 4 million non-zero addresses. Despite recent scrutiny from the United States Securities and Exchange Commission (SEC) labeling Cardano as unregistered securities, the significant amount of staked ADA—more than 22.79 billion out of a total supply of 45 billion—serves as a testament to the network’s decentralization.

But is there more to the story than meets the eye? Is it ‘too good to be true’? Let’s delve in.

Strong Future For Cardano

Crypto analysts, buoyed by the increasing adoption of blockchain technology in mainstream circles, are overwhelmingly optimistic about the Cardano network’s long-term prospects. Furthermore, Cardano’s DeFi ecosystem has been steadily expanding, with a total value locked (TVL) of approximately $164.19 million and a stablecoin market capitalization of around $14 million as of Monday.

Also Read: Cardano Price Prediction: Assessing ADA’s Future Amidst Regulatory Challenges

The network’s daily active user count exceeding 51,000 indicates a strong foundation for global adoption.

Cardano Price Analysis

Although the ADA price has been trapped in a macro bear market since September 2021, it has exhibited a declining trend in losses year-to-date (YTD), suggesting the possibility of an impending reversal.

After experiencing a staggering 64 percent drop in the first half of the previous year, ADA prices have decreased by only approximately 2 percent YTD. Notably, both the daily and weekly charts are indicating the formation of a potential double bottom, prompting TradingView analyst Alan Santana to predict a robust rebound towards the asset’s all-time high (ATH).

In the long term, the analyst expects the ADA price to trade between $4.9 and $7.77 with possibility of rallying further. 

“The really nice part is that this “long-term” is not that far because it is only less than two years away, which is actually pretty close,” he concluded.