With the hope of an altcoin slowly fading, the crypto sector is analyzing the possible market trends for leading altcoins. In the past few weeks some analysts predicted that Solana, BNB, Cardano and several meme coins could rally and lead to a crypto bull run. In light of this market prediction the question that arises is : Can the Cardano price reach $1 ADA/USDT? A brief analysis will help us to understand Cardano’s (ADA) potential to rally towards $1.
During the first half of the year Cardano has been showing bullish momentum. For example, on 12 March the ADA price reached $0.77, a few cents shy of the $1 price level. However, its value plummeted to $0.31 on 6 August. The following graph shows ADA’s price performance since January this year.
As the graph indicates, there has been a sharp price fall between March and October. In fact, the ADA price is far lower than its value at the start of the year. Specifically, on 1 January the cryptocurrency was trading at around $0.59. At press time, ADA is traded at $0.33 ADA/USDT on Gate.io exchange. From the time it broke below the $0.45 it has never recovered fully. Right now, ADA would need to rally by 185% to reach $1. However, to attain such a target it would need to maintain a steady upward movement. Several factors may influence its price rise. As examples, network upgrade, increased adoption and a crypto market wide positive sentiment may push its price to towards $1. Nonetheless, in its path towards $1 ADA should overcome the $0.50 and $0.70 price levels.
At present, a rise in whale activity is one of the potential triggers for an ADA price rally. In recent days, the coin has had transactions valued at over $100,000. However, the ADA trading volume over the past months shows waning investor interest in the asset.
Whereas the market expects the Cardano price to rise, several metrics are indicating a chance of rising bearishness. For instance, the ADA Global In/Out of Money (GIOM) metric shows that more than 1 million addresses have acquired around 2 billion coins at around $1.04. It also indicates that there are far more addresses that purchased the asset at around $0.35 than those that acquired it at a value of $0.66. The statistics show that it is possible for ADA’s price to rise towards $1, although it may face stiff resistance around the $1 price level.
The other metric that may help us to forecast ADA price movement is its Mean Dollar Invested Age (MDIA). If the MDIA is falling during a bull market it shows that whales are moving back the cryptocurrency in circulation with the aim of selling it. However, in the current situation the MDIA is steadily rising. This depicts that long-term holders are holding onto their assets. Since investor activity remains dormant it may be difficult for the asset price to rise.
Another development that can influence the ADA price to rise is its relationship with bitcoin. Recently, BitcoinOS, a Bitcoin roll-up protocol, indicated that it will soon launch its Grail bridge on the Cardano blockchain . That development will enable Cardano to tap into bitcoin liquidity. Also, the ADA users will be able to access bitcoin without using any third party.
BitcoinOS clarified: “This makes Cardano the first major Layer 1 blockchain to plug into BOS infrastructure, opening its ecosystem of crypto features to Bitcoin’s immense capital. This isn’t just a tech milestone; it’s the homecoming of the biggest names in crypto back to Bitcoin.” Likewise, this development may result in a higher correlation between ADA and BTC.
Cardano Price Prediction and Dynamics
Currently, there is a strong ADA support level at $0,30. Therefore, if its price falls it may stall at that point. Nonetheless, Cardano’s daily price chart is showing a strong bullish momentum. In fact, the asset has just gained by 2.23% within the last 24 hours. As a result of its recent rally it has turned $0.23 from a resistance level to a strong support floor. Notably, ADA’s short term price target is $0.34. However, if the bullish momentum persists it may reach $0.36. Although the short term charts are showing a bullish outlook the long-term ones indicate strong bearishness.
As the image shows, there is an orange Ichimoku cloud that is sloping downwards. That is an indication that the bearish pressure may continue. In addition, its price is below the 50-day moving average. The small candlestick bars that are within a range, show a very low volatility. On the other hand, the falling ADX line indicates declining crypto market volatility .
The future of the ADA price movement also depends on several factors such as the general crypto market outlook. When most crypto assets are performing well there is a high chance that ADA will follow suit. The evolving global economic environment will have a significant effect on its market performance.
