Cardano (ADA) Price Prediction for 2021: The Surge Looks Sustainable This Time
Cardano (ADA) – Forecast Summary
|ADA Forecast: H2 2021|
Price: $2.00 – $2.50
Price drivers: Technical indicators, crypto market sentiment, Alonzo hard fork
|ADA Forecast: 1 Year|
Price: $4 – $5
Price drivers: Release of Voltaire, ERC20 Token Converter, Technical charts
|ADA Forecast: 3 Years|
Price: $10 – $15
Price drivers: Cardano evolving, Crypto market sentiment, International legislation
ADA, which is the native currency of the blockchain Cardano has become one of the top cryptocurrencies in terms of market capitalization, after the surge higher in the first four and a half months of 2021 and the resilience after the crash. This digital currency surged more than 1,300% since November 2020. Cardano kept making new highs as it moved pretty close to to $2.50 by the middle of May, while most of the cryptocurrency market was either stagnating or in the middle of a deep correction lower, which was long overdue by the way. This showed an increasing demand for ADA/USD.
Cardano was launched in 2017, and initially, it traded pretty low, at around $ 0.05 cents, until early November that year, when the “Gold Rush” for cryptocurrencies sent them surging higher. The digital currencies, which were priced very low, like ADA, absolutely surged, and ADA/USD increased to 1.40, as shown on my crypto broker. But then the surge ended, and Cardano ended up back where it started at 0.001. It remained in that range until November 2020 when the bullish move started and it broke 2018 highs in April this year, which it will take out soon, as the price increased to $2.47 according to our broker.
The crash came later than in other cryptocurrencies for ADA, sending it just above $1. Although Cardano has been crawling higher since the last week of June, claiming back about a third of the losses and is up over 740% year-to-date (YTD), which again shows that the demand is increasing for Cardano. On the fundamental side, Cardano seems solid as well, with it’s energy-efficient token minting in a time when China has opened a war on Bitcoin mining for energy consumption issues apparently, the release of the Alozo hard fork which has attracted $30 billion in ADA coin staking.
Recent Changes in the Cardano ADA Price
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Factors Affecting Cardano ADA/USD
Cardano (ADA) gets affected by the sentiment in the crypto market, like all other digital currencies, which has been keeping them really bullish at the end of 2020 and the beginning of 2021. Comments on digital currencies from major investors and business people like Elon Musk drive the sentiment in this market. ADA ignored such comments earlier this year, as it kept marching higher, while the rest of the market stagnated. But, it retreated lower after China opened the war on cryptos. It is still holding better than most of the market though. One of the reasons for this is the new Cardano upgrades, such as the Alonzo Hard Fork in Q2 of 2021, after the Mary Hard fork which went live on March 1. They have been attracting attention and funds, which have been keeping ADA/USD better supported than most other major cryptos since the crash in May.
Cardano Live Chart
Cardano ADA Price Prediction for the Next 5 Years
The Cardano blockchain network was founded by a leading team of scientists and engineers, which makes it stand out from the crowd, as it leads the crypto market in terms of new developments. That’s one of the reasons for the continuing bullish momentum, while other cryptos have retreated lower. It has now become the third largest cryptocurrency by market capitalization at more than $ 38 billion, following [[Bitcoin]] and [[Ethereum]] . This cryptocurrency is based on peer-review-research, which attempts to bring it closer to the public, by making it more adaptable. As a result, it undergoes small changes constantly. So, the crypto market has retraced lower at the end of February, but ADA held most of the gains.
The Launch of “Alonzo” Hard Fork
ADA coin runs on the Cardano blockchain. It finally launched the “Mary” hard fork upgrade on March 1, which was the date for the Goguen era to start. That was delayed, but Charles Hoskinson announced that the full release of Goguen will now take place in August 2021. The Goguen era will be implemented in three phases, the Allegra and Mary phases, and now the Alonzo hard fork. When the Goguen era is over, Cardano will continue to its next phases – Basho and Voltaire.
The Goguen era updates will implement smart contracts into the DeFi system. This will also enable building decentralized applications (DApps) on Cardano and will make the network more scalable and sustainable. The Alonzo hard fork update is also divided into three phases, the first testnet phase which is Alonzo Blue was launched on 27 May. Alonzo White expected to go live in early July, while Alonzo Purple is the full release onto the mainnet in August, which will end the Goguen era.
More Developments for Cardano
Cardano is a blockchain-based platform that doesn’t necessary need a wallet, competing against other similar platforms, like Ethereum and EOS, but Frederik Gregaard, the CEO of the Cardano Foundation, made the following statement recently:
“I think the biggest competitors are really the largest technology companies that are around today, the large tech platforms such as Google, Amazon, Tencent, Alibaba, those kinds of players.”
He aims at bringing all these kinds of currencies together, in order to offer the full range of services to customers, rather than them competing against one another and missing the boat that the big companies will take. Charles Hoskinson also mentioned that they are aiming at attracting the big companies to their blockchain.
Recently, Cardano’s founder, Charles Hoskinson, added that Cardano has been in negotiations with potential partners and many important firms in the industry, like Prime Trust, Celsius, Fireblocks etc.
Cardano’s team is working on a number of developments in all areas, one of which is Volatire. Voltaire’s aim, which involves the governance area of blockchain, is to evolve Cardano into an outstanding innovation management platform. Cardano will release Goguen as well – the initial feature of the metadata transactions is already out. The next phase of the transformation from a single-asset system to a multi-asset one will come early next year, enabling users to create their own tokens. Besides that, the team is also developing the ERC20 Token Converter feature, which will make it easy to migrate from Ethereum to Cardano. Voltaire ensured accountability for funding on Cardano. With Voltaire, the blockchain’s governance era, will eventually evolve Cardano into one of the best innovation management platforms on the market, as thousands of people will participate in the blockchain’s accountability process.
Better Demand for ADA/USD After the Crash
The sentiment for Cardano used to be pretty similar to the sentiment in the crypto market. But, during the last week of February they seem to be diverging pretty fast. The crypto market has been going through one of the most bearish weeks in recent months, while Cardano continued to surge higher. A similar price action took place from April until May, when a number of cryptocurrencies were surging higher, with Cardano leading the way, as it surged from below $1 at the end of April up to $1.47 by the middle of March.
The crash was quite large, as it was for most cryptos, but even after that ADA/USD has been less bearish than the other digital currencies. It tried to make higher highs in June after the crash and after the second wage of selling in June, the price action has been bullish for about a month. The planned upgrades and developments have a positive impact on the native token ADA, as well as in the sentiment from traders.
Cardano ADA Technical Analysis – Is the 20 SMA going to Catch Up Soon?
ADA/USD started life pretty low and was trading close to $ 0.10 for a few months, until November 2017, when the demand for cryptocurrencies sent Bitcoin shooting up to $ 20,000, while ADA rose to 1.40. The price started coming down in January 2018, as the gold rush for cryptos ended, and by the end of that year, this cryptocurrency had lost all the gains. A support area formed around 0.02 at the bottom, while moving averages were providing resistance at the top, until July when buyers pushed the price to 0.1550, as the demand for cryptocurrencies returned. The price came back down eventually, however, ADA didn’t give back nearly all of its gains, as did some other cryptos. Instead, the retrace down stopped at the 50 SMA (yellow), which seems to have turned from resistance into support. Although, now after the surge it will take some time for the moving averages to catch up with the price, especially after the surge of the last week, which took the price to $ 1.55.
ADA/USD made new highs this time
On the monthly chart, the picture is even simpler. This picture shows a big U with the big surge at the end of 2017 and the second surge still underway. In this time-frame, the 20 SMA (gray) turned into support at the end of 2020 and the price bounced hard off that moving average. It’s a bit early to tell if Cardano will repeat the previous scenario, but considering that it is holding the gains while other cryptos have given back 20-25%, I think that we will see new highs in Cardano.
It will take time for moving averages to catch up now