Cardano (ADA), the cryptocurrency that powers the smart-contract-enabled Cardano blockchain, continues to suffer amid elevated crypto market selling pressure on Tuesday.
Price forecasts thus remain downbeat.
ADA/USD was last changing hands around 0.5% lower on the day in the $0.36s, with losses on the week last at around 3.4% after ADA dropped below key support near $0.38 on Monday.
For now though, the ADA price is being helped up by firm support in the form of the 200-Day Moving Average (DMA) just above $0.35.
Indeed, the bears attempted to push the price below this level on Monday but to no avail.
While the bounce from the 200DMA is a good sign, the prospect of a Tuesday rebound may remain limited, with Cardano struggling amid the same capacity problems being seen on other major blockchains like Bitcoin and Ethereum, which has arguably been weighing on crypto sentiment in the last few days.
Cardano’s blockchain is close to reaching its maximum transaction processing capacity before a transaction queue begins to form just as higher demand for block space on the Bitcoin and Ethereum networks amid a meme coin craze sends transaction fees through the roof.
Another factor likely to keep the bulls at bay on Tuesday is Wednesday’s looming US Consumer Price Index (CPI) report, which is touted as this week’s most important macro risk event.
ADA could spike higher or lower based on how the inflation numbers come in relative to expectations and whether this influences expectations as to the Fed’s interest rate plans.
Cardano (ADA) Price Forecast as Total Value Locked on Blockchain Rises by 300% in 2023
In light of the cryptocurrencies recent bearish breakout of a descending triangle, risks are tilted towards fresh downside for Cardano.
That’s despite the fact that the cryptocurrency’s blockchain ecosystem has been showing some healthy signs of growth in recent weeks.
The dollar value of crypto locked in smart contracts on the Cardano blockchain, or Total Value Locked (TVL), was last around $170 million, up close to 300% since the year began, according to data presented by DeFi Llama.
That means that’s investors have been moving funds into Cardano’s Decentralized Finance (DeFi) ecosystem in order to capture improving yield-generating opportunities, and thus improving the ecosystem’s liquidity.
Despite all this, ADA could soon mount a retest of its 200DMA in the $0.35 area and in doing so, also test an uptrend that began late last December.
So long as ADA can hold above this uptrend (and the 200DMA), the bull market thesis should remain intact.
If not, a test of March’s $0.30 lows becomes highly likely.
Can ADA Reach $10?
From the top of its 2018 bull market highs (at $1.31) to its 2020 bear market lows (at under $0.02), ADA lost a stunning more than 98%.
It then posted a more than 170x recovery to hit fresh all-time highs above $3.13 at the peak of the 2021 bull market.
When ADA fell under $0.24 last year, that marked a more than 92% drawdown from the 2021 highs.
If history is to repeat itself and ADA is to post 170x gains from these lows, that would imply the ADA price rallying above $40.
Now, this might be a little optimistic.
Along with the broader cryptocurrency market, Cardano is maturing as an asset, which means its swings between bull market highs and lows and back again will become less extreme in time.
But could ADA post 40x gains versus its 2022 lows to hit $10 per token during the upcoming bull market?
If the likes of Bitcoin pushes into the hundreds of thousands of dollars per token and Ether pushes above $10,000 in the coming years, there is no reason why Cardano can’t post strong exponential gains.
Many bulls will be eyeing $10 as a long-term profit target.
Buy Cardano Now
Greener Cardano Alternative to Consider – Ecoterra (ECOTERRA)
Investors should always be on the lookout to diversify their crypto holdings.
One high-risk-high-reward investment strategy that some investors might want to consider is getting involved in crypto presales.
This is where investors buy the tokens of up-start crypto projects to help fund their development.
These tokens are nearly always sold very cheap and there is a long history of presales delivering huge exponential gains to early investors.
Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform.
If an investor can identify such projects, the risk/reward of their presale investment is very good.
The team at Cryptonews spends a lot of time combing through presale projects to help investors out.
One such project that the team has identified as having a very strong potential is Ecoterra.
Ecoterra is the native cryptocurrency of a blockchain-run green ecosystem that incentivizes environmentally friendly behavior.
Ecoterra’s ecosystem consists of a Recycle to Earn (R2E) platform, a carbon offset marketplace, a marketplace for recycled materials and an impact profile.
The green web3 start-up’s R2E app is supported in any country that uses Reverse Vending Machines (RVMs), meaning a huge potential market.
Ecoterra is in the fourth stage of its ECOTERRA token presale, with tokens currently priced at just $0.00775.
The project just passed the massive milestone of having raised nearly $3.4 million.
Potential investors should note that the presale price will soon rise to $0.0085 and that the token will list on exchanges at $0.01 – a near 30% jump from current levels.
Visit Ecoterra Here