Connect with us

Price Analysis

Cardano Price Rally 85%, Will ADA/USD Reach $1?

Published

on

Cardano Price Preditction Cover

The Cardano price is ripping higher, starting the year with superb gains.

As of writing on Jan 7, the ADA price was changing hands at $0.33, adding 23 percent on the last day, stretching gains versus the USD to 85 percent week-to-date.

ADA prices have also gained against the BTC and ETH in the last week of trading, adding 42 and 14 percent, respectively.

The coin is now perched at seventh with a market capitalization of $8.69 billion at spot rates. With the price surge, its average trading volumes in the last day are up 72 percent to $3.982 billion or 11.8 billion ADA tokens.

Cardano (ADA) Price Overview

The path of least resistance for the coin priming the peer-reviewed and high throughput platform is northwards as candlestick arrangement shows.

Aforementioned, the coin is at $0.33, blasting past several sell wall and trading within a bullish breakout pattern. With an uptick in average daily volumes, the upsurge is backed with participation. This shows that the upward momentum is firm, and buyers appear to be buying the dips.

Following the close above a two-year consolidation in the tail-end of 2020, bulls appear reinvigorated.

As of writing, the coin is now on the verge of retesting April 2018 highs propelled by comparatively low trading volumes. Noticeably, the retest and the subsequent bounce from $0.10 in mid-November was with higher trading volumes.

Still, the follow-through and confirmation of the $0.16 breakout in early July can be enough justification for buyers aim for ADA/USD price to more than triple and attain parity with the greenback.

The zone between $0.10 and $0.16 forms support for traders expecting a pullback in the immediate term.

On the more optimistic side, traders loading on pullbacks in lower time frames have 2021 highs of $0.36 as resistance.

Cardano (ADA) Market Movers

The explosion of ADA prices in the second half of 2020 to spot rates mean its market cap is just six percent of Ethereum’s, a platform with a $136 billion valuation.

Over the years, the project’s market cap has been increasing versus Ethereum, causing analysts to say ADA is undervalued.

In the coming months, Cardano will activate Goguen and introducing smart contracts smoothly without contention.

While public, Cardano uses their Hard Fork Combinators for upgrades preventing network disruptions and seamless transitioning between phases. Combined, these technologies are superior to Ethereum, which is also improving, shifting to a new blockchain with staking.

Because of Cardano’s technology, Celcius will be migrating to the platform:

There is also more development and funding with the re-launch of Project Catalyst. Funds have been doubled to $500k.

In anticipation of what’s ahead, users are creating more ADA wallets:

Cardano (ADA) Price Prediction

Cardano Price Rally 85%, Will ADA/USD Reach $1?

The ADA/USD price is up double-digits in the past 24 hours, registering gains versus the BTC and ETH.

In the weekly chart, the spike to $0.36 was with relatively low trading volumes. However, buyers are still in the driving seat, and every low can be another opportunity for traders to add to their longs.

Aggressive buyers are targeting $0.36, this week’s highs. Further gains can see the ADA/USD reach $0.40 or April 2018 highs.

Based on the Fibonacci extension level tool–anchoring on the consolidation between Dec 2018 and late 2020, the next targets can be $0.54 and $0.64, the 3 and 4.168 extension levels.

Chart courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

cryptotelegram-telegram-banner

Trending