After the market went red after the FTX collapsed, Cardano (ADA) and the rest of the cryptocurrency market’s assets consolidated into a sideways trading pattern, leading to conjecture about the ADA’s likely future path.
Cardano is consolidating with the rest of the cryptocurrency market’s assets into a sideways trading pattern after the market turned red following the collapse of FTX, thus prompting speculation about the ADA’s potential future direction.
According to statistics gathered by Finbold on November 17, CoinMarketCap users who voted using the platform’s Price Estimate feature estimate that Cardano will trade at an average price of $0.4861 on December 31, 2022. The consensus of 4,817 voters projects a price increase of $0.1638, or +50.81%, above the current value of $0.3224 for the digital asset.
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Cardano’s founder Charles Hoskison said the FTX debacle might be the final catastrophe to rock the cryptocurrency sector, as reported by Finbold. It’s important to remember that the May collapse of the Terra (LUNA) ecosystem contributed to the prolonged bear market.
Deep learning algorithm Cardano prediction
Interestingly, elsewhere, NeuralProphet’s PyTorch-based price prediction algorithm that uses an open-source machine learning framework has predicted a similar price halfway through the month, estimating that ADA would reach the price of $0.48 by December 12, 2022, the furthest prediction date on the chart, at the time of publication.
Notably, the model spanning the period of July 31, 2021, to December 12, 2022, has exhibited a decent track record of accuracy up to the unexpected market collapse of the algorithm-based stablecoin project TerraUSD (UST), but it is far from perfect.
Cardano’s network development
Development continues to take place on the Cardano network as it recorded a spike in the number of wallets adding 33,097 in a week. Finbold reported on November 13 the figure stood at 3,671,522, while on November 7, the decentralized finance (DeFi) platform had 3,638,425 wallets, according to Cardano Blockchain Insights data.
Meanwhile, Cardano is creating a new wallet called Lace, with Hoskinson noting that the network would likely reach one billion users once it is released. Lace, a lightweight multi-chain cryptocurrency wallet, claims to integrate Web2 and Web3 features into a single interface. The wallet is a game-changer for Cardano owing to its ability to incorporate identities, transactions, and applications into a unified experience.
The ADA community will rely on the Input Output (IOHK) developers to make additional improvements to the network within a few months after the Vasil hard fork, despite the gloomy outlook caused by external circumstances.
The CEO of the Cardano Foundation, Frederik Gregaard, expressed excitement over the plans for Cardano in 2023 on November 15, which he believes will “really move the needle, both short-term and long-term,” as well as expecting the ecosystem to mature outside its community.
“There are so many things I’m excited about. There are certain integrations that I’m not able to talk about right now, but I’m hoping they will land because they will really move the needle, both short-term and long-term,” he said.
ADA price analysis
Looking at the ADA technical analysis, it is predominantly negative, with the summary on the 1-week gauge pointing at ‘sell’ with 11. Elsewhere, moving averages align with a ‘strong sell’ at 10, while oscillators are ‘neutral’ at nine.
ADA was trading at $0.3235 by press time, down 1.63% in the last 24 hours and 12.86% across the previous week, with a total market cap of $11.1 billion, according to CoinMarketCap data.
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