Cardano price is looking stronger as it has formed a bullish reversal pattern on the 12-hour timeframe. Meanwhile, the market is optimistic about the ADA price surging higher as analysts predict it could reach $1 or higher by December. Let’s explore some of the reasons why the ADA price is likely to hit $2.
Why Cardano Price Could Hit $2 Soon
Crypto analyst Dan Gambardello piqued the interest of the Cardano community and the crypto space at large following his recent post suggesting that the market should be ready for a $1 ADA by December, with a longer-term outlook of $5-$10 range.
The ADA price has dropped by 1.7% in the last 24 hours and is trading at $0.3462. The current market position of Cardano (ADA) and its potential future movements are largely based on historical data. Here are some reasons why analysts are placing such high expectations on the Cardano price.
Cardano Price Today
Cardano’s Market Sentiment is Bullish
While there is a prevailing sentiment that Cardano is lagging behind other cryptocurrencies, history suggests this perception may not accurately reflect its potential. Currently, the price of Cardano is performing better than it did in the previous cycle at a similar stage. It is currently down about 88% from its all-time high, indicating a stronger position than the last cycle, which crashed by 98.54%.
Additionally, there has been a steady activity among ADA whales, as data from IntoTheBlock suggests. Large holders transaction count has been bouncing between 4,000 and 2,300 since beginning of September.
Such steady whale activity suggests a cautious market sentiment with a wait-and-see approach. Positive news from Cardano or a change in the overall crypto market condition may push ADA prices higher.
ADA continues to Receive Boost From Fundamental Developments
Cardano has seen a significant increase in Plutus V2 smart contracts, which have grown from 8,083 to 80,437, an over 10x surge year-to-date. Cardano is expanding its capabilities and potential to support different dApps.
The surge in smart contracts also suggests developers are interested in building on the Cardano platform, potentially drawn in by the network’s robust security features and scalability. Plutus V2’s enhanced features make it easy for developers to create more efficient dApps.
As more dApps are built on the platform, it could drive increased usage and demand for ADA, potentially boosting the Cardano price.
Cardano Price Forecast Hints At Bullish Market Structure
Cardano is currently testing the 50-day exponential moving average (EMA), and it needs to break above $0.35 and $0.40 to confirm a bullish trend. In October 2020, the value of Cardano was around $0.10. At that time, it was down over 98% from its all-time high but later surged to significant gains, reaching about 3,000% during the 2021 bull market.
If Cardano follows a similar breakout pattern as seen in previous cycles, it could reach $1 by December and $2 in early 2025.
Cardano price chart
Analysts believe that Cardano is well-positioned for future growth, potentially reaching values between $5 to $10 in the long run due to strong community support, technological advancements, and strategic partnerships.
Further, according to the Wall Street Cheat Sheet on trading psychology, Cardano investors seem to be deep in the depression phase of the market cycle. However, despite the temptation to cut losses, this section of the market cycle usually presents the best entry opportunity as it is nearest to the bottom.
Entry at these prices rivals gains only made from investors who bought during the Anger phase.
Conclusion
Cardano’s current market position and historical performance suggest a potential for significant growth shortly. Investors can make informed decisions by understanding the factors influencing its price movements. If history repeats itself, the Cardano price may surge to $2 and beyond by Q2 2025.
The post Cardano Price Bottoms, Is $2 Next for ADA? appeared first on CoinGape.
