Cardano Price Prediction: The Contrarian Case for ADA
The Cardano price is struggling. ADA is trading at about $2.05, which is about 35% below the highest level in September this year. The current price is where it has been in the past few days. Its market capitalisation...
The Cardano price is struggling. ADA is trading at about $2.05, which is about 35% below the highest level in September this year. The current price is where it has been in the past few days. Its market capitalisation has crashed from an all-time high of more than $90 billion to about $68 billion. Its ranking has also dropped from number 3 to the current 6.
Why is ADA price stuck?
The Cardano price is struggling even as other cryptocurrencies surge. For example, the price of Ethereum has surged to an all-time high of more than $4,700 while Bitcoin has risen to more than $65,000. If this trend goes on, the price will likely retest its all-time high of more than $66,000.
The ADA price has struggled as demand for the currency has struggled since the developers launched their Alonzo hard fork that introduced smart contracts. Investors have avoided the coin because the ecosystem has been relatively sluggish since it was launched. There are no well-known applications built using the technology.
At the same time, competition in thr industry has been rising. Some of the top platforms that are challenging Ethereum are Binance Smart Chain (BSc), Solana, Polkadot and Terra. Therefore, analysts believe that Cardano will face significant challenges competing with these platforms.
Cardano price prediction
The four-hour chart shows that the ADA price has been in a major sell-off in the past few weeks. A closer look at the chart shows that its price has formed what looks like a falling wedge pattern that is shown in black. A falling wedge pattern is usually a bullish sign.
Cardano has moved slightly above the 25-day and 50-day moving averages (MA) while the Relative Strength Index (RSI) has risen above 50.
Therefore, the contrarian view is that the ADA price will rebound later this month. All it needs is a spark that will push it substantially higher.
If this happens, the next key level to watch will be at $2.50, which is about 20% above the current level. However, a drop below the key support at $1.8 will invalidate the bullish view.
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