Investors and analysts are trying to predict the future price performance of Cardano (ADA). As the price continues to show red numbers, a leading crypto analyst feels that ADA is “exactly where it should be.”
Cardano loses 10th place against Telegram’s Toncoin
Cardano’s recent spotlight highlighted its disappointing price performance and lack of appeal to traders. Despite its technology and strong community, the ecosystem lacks the activity and demand of other chains like Solana.
Recently, Charles Hoskinson defended the project, stating that “Cardano always wins,” referencing a poll that ranks the best Tier 1 networks. Additionally, Hoskinson took another jab at Solana’s network problem after its recent transaction failure rate reached 75%.
However, on Tuesday, ADA lost its place in the top ten cryptocurrencies after being surpassed by Toncoin (TON). According to data from CoinGecko, Cardano’s market capitalization of $20.1 billion was surpassed by TON’s market capitalization of $23.3 billion. As a result, ADA’s position as the tenth largest cryptocurrency by this metric was taken by TON.
ADA drops to be the 11th biggest cryptocurrency by market cap. Source: CoinGecko
According to data from CoinMarketCap, ADA remains among the top ten cryptocurrencies, ranking ninth on the site’s list before being flipped.
ADA is “where it should be”
Last week, crypto analyst Ali Martinez revealed that ADA whale activity was “experiencing a lull.” For the analyst, it is not yet known whether this was a sign of greater price consolidation or a drop.
Some to believe that TON’s overtaking of Cardano’s place on the list highlights some of the characteristics of the ecosystem problems. Martinez reiterated his prediction was made around the time Bitcoin recorded its latest all-time high (ATH) of $73,373. At the time, the analyst considered that ADA resembled the pattern observed from 2018 to 2021.
In the period observed by Martinez, the Cardano token went through a long period of consolidation, with the price fluctuating between US$0.026 and US$0.082. After breaking through this resistance level, ADA price rose to $0.35 in the following weeks before continuing its upward trajectory to its ATH of $3.09.
According to the analyst, if this fractal continues in the following weeks, investors should “anticipate ADA consolidation in the $0.55 to $0.80 range. This would be followed by a rise to the $1.7 support level.
After another period of consolidation, the stage would be set for the token’s price to “break to US$5”, considered the analyst.
![Cardano: Crypto Analytics Firm Predicts $1.7 for ADA 2 ada adausdt cardano](https://thegurumedia.com/wp-content/uploads/2024/04/cardano-ada-adausdt.jpg)
Almost a month later, the analyst considers that “nothing has changed for Cardano”. Martinez reaffirmed price consolidation between the $0.55 to $0.80 range and subsequent breakout as “ADA is exactly where it should be.”
Despite the bullish analyst forecast, ADA’s price of $0.5762 remains 81.5% below its 2021 ATH. At the time of writing, the token knocked down 5.4% compared to the previous day. Additionally, its performance decreased by 3.6% and 22.3% in the weekly and monthly periods.
However, the token’s market activity increased by 6.6% in the last 24 hours, with a daily trading volume of $502.1 million.
ADA's performance in the 1-day chart. Source: ADAUSDT on Tradingview
Featured image from Unsplash.com, chart from TradingView.com
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