Cardano (ADA) remains among the exciting cryptocurrency projects with a host of network development initiatives, with investors hoping the activities will positively influence the asset’s price in the future.
Notably, Cardano has enjoyed steady development updates over the course of 2022’s bear market, with metrics like smart contracts hitting new milestones. Indeed, the asset has been weighed down by the general crypto market meltdown, with incidents like the FTX collapse and the macroeconomic factors taking center stage.
ADA price analysis
ADA has lost major support levels across 2022 with decentralized finance (DeFi) token trading in the shadow of the 2021 bull market, where it rallied to a record high above $3. By press time, the asset was changing hands at $0.26, with losses of about 82% from the yearly high of $1.50.
Having registered a daily rise of about 1.7%, ADA investors will be hoping the asset has bottomed to form the foundation for a new rally moving into 2023. At the moment, ADA is looking to reclaim the $0.30 support that can act as a base for rallying toward $0.50.
Elsewhere, ADA technical analysis is predominantly bearish. A summary of the one-day gauges aligns with the ‘sell’ sentiment at 13, while moving averages are for a ‘strong sell’ at 12. Oscillators are ‘neutral’ at 9.
In general, network developments remain the key possible bullish triggers for ADA. The development has made Cardano stand out as a potential ‘Ethereum (ETH) killer’ while dwarfing other cryptocurrency platforms.
It is worth noting that Cardano’s reputation in the market comes from its growing smart contracts feature with a focus on security and decentralization backed by formal methods and peer-reviewed research.
As reported by Finbold, experts had pointed out that the robust network activity could place the token to trade at $8 by 2025. Therefore, for the asset to hit such levels, 2023 could be crucial to help build the foundation.
However, ADA’s prospect will rely on the momentum of the general market with a focus on how the prevailing macroeconomic factors play out. At the same time, with most jurisdictions focusing on regulation, any laws targetting the crypto sector will likely impact the value of ADA in 2023 and beyond.
In the meantime, the PricePredictions machine learning algorithm forecast indicates that Cardano will likely enter 2023 in a consolidation phase. In particular, the forecast indicates that ADA could trade at $0.24 on January 1, 2023.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.