Cardano (ADA): A Potential Underdog in the Crypto Space
Over the past year, Cardano (ADA) has been somewhat overshadowed by the impressive growth of other cryptocurrencies like Solana (SOL) and Toncoin (TON). This has led to mixed opinions within the crypto community. Some enthusiasts view Cardano as a “sleeping giant” on the brink of a significant bullish breakout, while others are more skeptical, labeling it a “zombie project” that may struggle to keep up in this bull cycle.
Why Cardano Still Holds Potential
Despite these challenges, Cardano’s web3 ecosystem remains robust. The network currently has over $192 million in total value locked (TVL) across various DeFi protocols, including Minswap, Indigo, and Liqwid. This shows that there is still considerable activity and value being generated within the Cardano ecosystem.
From a developer’s perspective, Cardano is in the final stages of its decentralization journey, with the upcoming Chang upgrade set to introduce self-sustaining features. This upgrade is crucial as it will enhance the network’s ability to operate independently, making it more resilient and appealing to investors.
Cardano’s community remains strong and engaged. The number of addresses with a balance has stayed around 4.45 million for over a year, indicating a stable and committed user base. Additionally, on-chain data analysis from IntoTheBlock reveals that the Cardano network settles about $7.2 billion in daily transactions. With nearly 40% of ADA’s supply held by long-term investors, it’s clear that many believe in the altcoin’s future potential.
Midterm Prediction for ADA Price
While Cardano (ADA) has seen a significant decline, dropping over 58% from its peak in March 2024, there are signs of a potential recovery. ADA’s price is currently forming a bullish pattern, specifically a macro megaphone pattern, which typically indicates a strong trend. If ADA can consistently close above key levels, like the weekly 50 and 200 Moving Averages (MAs), it could trigger a bullish breakout.
If this breakout occurs, ADA could aim for a price target of $1.16, which aligns with the weekly 1.618 Fibonacci Extension. This would represent a significant recovery and could attract more investors looking for strong returns.
Not a financial advice, includes third party opinion