Cardano (ADA), has had a poor start to 2022. Digital asset Cardano (ADA) has been struggling to $1 since 2021, when it had reached its highest point above $3. The digital asset continues to do well year-to date, but not in the way that the community wants. Its recent price rise has brought it closer to $1. But when will it reach that level?
ADA to $1
The charts do not show Cardano’s long-term prospects. Despite the recent recovery, ADA still trades below its 50-day moving mean. This indicator points to there not being any buying pressure over the short term for the digital asset, hence making this strictly a seller’s market.
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ADA’s slide below $1 was undoubtedly one of the worst things that could have happened for the cryptocurrency in the short term. The result was that the cryptocurrency had lost over 60%, at a time other big players are still holding their ground above this loss point. This puts the digital asset in an area where bears are taking over and continuing to lower the price.
Although $1 is close to being a possibility, it does not appear likely that it will be. There is one thing that could help, however: the rapid growth of Decentralized Finance (DeFi) via the Blockchain. This may be enough to push ADA above $1 but is unlikely given all the competition in this space.
Cardano still in the running
The price of Cardano is dropping, but it doesn’t diminish the hard work the Cardano developers have done. This upgrade to the network, which is continuously being updated in order to accommodate more demand, was just completed.
ADA prices near $1| Source: ADAUSD on TradingView.com
Input Output HK was the designer behind Cardano announcedIt announced Monday that the company has just completed an additional upgrade to improve network scaling. The most recent update will result in an increase per block, according to the developer. This will allow the blockchain to scale up by increasing the Plutus script unit limits from 56M – 62M.
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ADA trades below $1 at $0.955 as we write, and is preparing to push the $0.998 resistance mark. If it breaks above that, the digital asset would trade above $1 and must find significant support. Otherwise, it could lose its ground.
Featured Image from ItsBlockchain. Chart by TradingView.com