Cardano Price Prediction for 2021 and Future Predictions | FXleadersFX Leaders

Cardano (ADA) Price Prediction for 2021: The Surge Looks Sustainable This Time


Skerdian Meta • 6 min read
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Cardano (ADA) – Forecast Summary

ADA Forecast: H1 2021
Price: $1.50 – $1.80
Price drivers: Technical indicators, crypto market sentiment, Voltaire development.
ADA Forecast: 1 Year
Price: $2 – $3
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 recent surge higher. This digital currency has surged more than 1,300% since November 2020, while 85% of the gains have come in February alone, and they don’t seem to stop any time soon. Cardano keeps making new highs as it moves to $1.55, while the rest of the cryptocurrency market is in the middle of a deep correction lower, which was long overdue by the way.

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 at the moment it is heading for the January 2018 highs, which it will take out soon, as the price action indicates.    

 

Current ADA Price: $

Recent Changes in the Cardano ADA Price

PeriodChange ($)Change %
1 Month+0.16+17.6%
3 Months+0.90+530%
6 Months+0.97+645%
1 Year+1.05+790%
Since 2017 +0.60+130%

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. Although, ADA has ignored the crypto market sentiment in the last week of February, as it keeps marching higher, while the rest of the market has retreated lower. One of the reasons for this is the new Cardano upgrades, such as the Mary Hard fork which has just gone live on March 1. They have been attracting attention and funds, which keep pushing ADA/USD higher. 

Cardano Live Chart

ADA/USD

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 “Mary” Hard Fork

ADA coin runs on the Cardano blockchain. It finally launched the “Mary” hard fork upgrade on March 1, which means that it is becoming a multi-asset chain with its hard fork. The hard fork will allow users to create new tokens that run on the Cardano blockchain as a native platform for those tokens, just like ADA. Enabling new coins/tokens was one of the first big use cases that caught on for Ethereum, enabling 2017’s multi-billion dollar initial coin offering (ICO) splurge. Ethereum co-founder Charles Hoskinson said, “the transition should be fairly simple for node operators. They just need to update their software and everything should work well. “We’ve been testing it for almost a month, and the test looks good. Exchanges are happy”. Mary finally introduces smart contracts to Cardano now, which is a big step.

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.

Sentiment for Cardano Diverging from the Crypto Market

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 continues to surge higher. During the crypto craze at the end of 2017 which sent ADA/USD surging to 1.40 and the beginning of 2018 which saw Cardano crash back down, the sentiment was in line with the broader crypto market. For the next two year, this new market traded sideways, consolidating near the bottom and so did Cardano.

The main cryptos started surging in November, while ADA/USD was only making minor gains. Cardano started catching up with the sentiment in the crypto market in January and February as the surge resumed again. But, in the last week of February Cardano and the rest of the market seem to be diverging. While we have seen a deep pullback in most digital currencies, Cardano keeps surging, making new highs, as it moved to 1.55. One of the main reasons for the positive sentiment in Cardano is the new upgrade EDO, as we explained above. This goes in favour of Cardano, since when the sentiment turns bullish again this cryptocurrency will benefit even more.  

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


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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.