Cardano (ADA) price rose nearly 15% since the crash triggered by the outbreak of war in Ukraine. According to the community consensus on CoinMarketCap portal, Cardano will reach $1.49 by the end of March. This consensus indicates a chance for a return of positive sentiment towards the cryptocurrency. Surveyed investors estimate an upside potential of around 50% for the ADA token. In the past, similar surveys have often proven to be surprisingly correct, although they only reflect the expectations of various market participants regarding future price movement.
Recently Cardano has been moving in a medium-term downward trend which has disappointed investors since its blockchain introduced the ability to execute 'smart contracts' in autumn 2021. However, Cardano's network is growing strongly and in February on average 5,000 new ADA wallets were added to the blockchain per day. In turn, the number of ADA wallets reached an important milestone of 3,000,000 on 3 February. The 2022 network improvements declared by Charles Hoskinson and his team of developers have sparked investor interest. According to research, Cardano is now 47,000 times (!) more energy efficient than Bitcoin.
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Open account Try demo Download mobile app Download mobile appTo illustrate the volatility of the cryptocurrency market, it is worth mentioning that after February 2021 "rally" nearly 94% of ADA investors recorded a profit. Today, by contrast, nearly 90% of investors are at a loss, while less than 10%% still enjoy profits. Euphoria, therefore, has turned to panic within a year. As a result Cardano price has slipped below the psychological support at 1.USD. Some contrarian investors believe that breaking above this level may restore bullish sentiment. If these investors' assumptions come true Cardano has a chance to reach its all-time high at $2.72 later this year.
In the meantime, however, the cryptocurrency market is highly volatile and is affected by a number of macroeconomic factors. It is also worth adding that technological upgrades do not necessarily bring immediate price reactions which are influenced by a number of other factors such as marketing, market sentiment, Bitcoin price and many others.
Cardano, however, remains an interesting project from a fundamental side as it is technologically advanced and meticulously developed by a wide team of developers. These factors may allow it to survive a potential 'cryptocurrency winter' and compete with Ethereum for the status of the second most popular cryptocurrency in the coming years.
CARDANO price rose sharply during todays’ session, however buyers failed to break above psychological support at $1.00 which is marked with the upper limit of the 1:1 structure. Currently price is heading towards local support at 0.9430 which coincides with 38.2% Fibonacci retrenchment of the last downward correction. Source: xStation5
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