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Cardano Price Forecast: Why ADA Grows Slower Than Other Coins

Cardano’s price has risen 28% since its low for the year. The recovery is not as impressive as that of other popular coins like Solana and Ether. What the growth of the ecosystem means for ADA

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Cardano’s price is rising, but not as much as the prices of other cryptocurrencies. The native token ADA is trading at $1.1742, which is about 28% above its lowest level this year. Other coins like Ethereum, Solana, Terra, and NEAR have seen their prices rise by more than 30%.

If you want to find more details about Cardano’s price and to read the latest financial news, download for free our companion app Born2Invest.

Ecosystem growth

Cardano is one of the largest blockchain projects in the world. According to CoinGecko, the crypto coin has a market capitalization of more than $37 billion, making it the seventh-largest cryptocurrency in the world. Bitcoin, Ethereum, Tether, Binance, and USDC are larger.

However, Cardano has been an embattled blockchain project. Some have referred to it as a ghost chain. This means that there are still no major projects on this network. This was partly because Cardano did not have smart contracts for years.

The situation changed in 2021 with Alonzo hardfork. Since then, the ecosystem has grown and developers have launched DeFi, Non-Fungible Tokens (NFT), and Metaverse projects.

Some of the largest DEX exchanges in Cardano are AdaSwap, DOEX, Cardax, and ADAX. At the same time, there are several DeFi projects currently being developed on the blockchain, such as Cardano Mixer, Atomic Swap, and Ada Finance. Nevertheless, these DeFi projects are still small.

Other parts of the ecosystem include Ardano, Cardahub, and SingularityHub. Cardano also has projects in Launchpad, crypto lending, and infrastructure.

Analysts point out that it is too early to tell if Cardano will become a viable alternative to existing blockchains such as Ethereum, Solana, and Polkadot.

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The next major catalyst for the Cardano price will be the upcoming U.S. consumer inflation data. Analysts expect the data to show US inflation rising to 7.3% in January and core inflation to 5.3%. These figures are important because they affect interest rates.

Cardano Price Forecast

The four-hour chart shows that the ADA price fell to a low of $0.9235 in January this year. Since then, the coin has recovered spectacularly and is trading at $1.1765. The recovery has been in line with the general performance of stocks and cryptocurrencies.

Along the way, the Coin has formed an ascending channel, shown in red. The current price is slightly below the top of this channel. It is also below the Fibonacci retracement level of 38.2% and above the moving average of the last 25 days.

Therefore, I suspect that the price of Cardano will continue to fall as the bears target the bottom of the ascending channel at around $1.

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(Featured image by GO223BANQ1MAL via Pixabay)

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Helene Lindbergh is a published author with books about entrepreneurship and investing for dummies. An advocate for financial literacy, she is also a sought-after keynote speaker for female empowerment. Her special focus is on small, independent businesses who eventually achieve financial independence. Helene is currently working on two projects—a bio compilation of women braving the world of banking, finance, crypto, tech, and AI, as well as a paper on gendered contributions in the rapidly growing healthcare market, specifically medicinal cannabis.