- Cardano has seen massive growth in the number of projects, investors and on-chain activity.
- The Ethereum-killer suffered a correction with a hidden bearish divergence in the Cardano price chart.
- Analysts believe a spike in trading volume could push Cardano price above 200-day EMA, set a target at $1.60.
Cardano price has suffered a recent pullback, as 3.4 million addresses were underwater. Nevertheless, analysts have predicted a recovery in Cardano price, and set target at $1.60.
Cardano price sets eyes at $1.60 target
Ethereum-killer Cardano is on track to recover from the recent price drop as the altcoin attempts to rise above the 200-day EMA. There has been a consistent growth in Cardano’s on-chain metrics, the number of wallet addresses holding ADA, dApps on the network and trade volume on its blockchain.
Proponents believe the recent drop in trade volume influenced Cardano price negatively. Based on data from crypto intelligence platform IntoTheBlock, 3.4 million Cardano addresses were underwater when the altcoin plunged to the $1 level.
11% of Cardano investors that held ADA for over a year, 1.25 million to be exact, remained profitable, while a vast majority suffered losses at the current price.
The number of projects on the Cardano network has increased, hitting a total of 1000 on the blockchain. Cardano aims to optimize its ecosystem with the fast-approaching launch of Hydra.
Currently, over 47% of projects on the Cardano network are NFT collections, and with the fast adoption of the metaverse, this number is likely to increase, driving capital inflow to the ADA ecosystem. Historically, a rise in inflow fuels a price rally in the Ethereum-killer.
Analysts have evaluated the Cardano price trend and predicted a recovery in the altcoin. FXStreet analysts believe Cardano price is holding up after staging a breakout with an Adam and Eve formation, producing a higher high. Selloff above the $1.18 level triggered the recent pullback in Cardano price. Cardano’s volume profile could save the altcoin from further losses and push it on track to the $1.6 target.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Why LUNA traders do not have to be in the market all the time
Terra (LUNA) price action has slipped below a critical level outlined a few days ago. As price action moves start to get smaller, a big move is set to happen, but it is very cloudy to see where that move will be going.
SEC vs. Ripple case, two key decisions awaited by XRP holders
XRP holders are awaiting key decisions in the SEC vs. Ripple case. Experts believe judge Sarah Netburn could rule on the two key decisions in the lawsuit against payment giant Ripple.
MATIC price explodes as Polygon achieves Carbon neutrality
MATIC’s purchase of carbon credits through KlimaDAO partnership represented 104,794 tonnes of greenhouse gasses, equivalent to the Ethereum scaling solution’s debt since 2019. Carbon neutrality has fueled a bullish sentiment among traders and
Things have suddenly changed for the Shiba Inu price, is the bottom in?
Shiba Inu price may have bottomed but this can only be confirmed if the current rally persists. Traders should be aware of several factors. Shiba Inu price has suddenly changed as the bulls have printed a significantly large bullish engulfing candle on the daily chart.
Bitcoin: Everything you need to know about BTC 200-week MA
Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.