- Cardano price has staged a strong recovery recently.
- The coin could jump by 48% to $0.7491.
Cardano price has crawled back in the past few days as the investors bet that cryptocurrency prices have bottomed. ADA is trading at $0.5195, which is about 35% above the lowest level this month. Its market cap has jumped to about $17.7 billion, which is still lower than its all-time high of over $91 billion.
Has Cardano bottomed?
Cardano has been in a spectacular freefall in the past few months as cryptocurrency prices have plummeted. The coin’s price has crashed from an all-time high of over $3 to today’s $0.5195.
The main reason for the sell-off is that the cryptocurrency bubble that inflated in 2021 has burst. A closer look shows that all cryptocurrencies have crashed by more than 50% from their all-time highs,
The bubble has also bursted in other assets as well. The most notable has been the technology sector, where the Nasdaq 100 index has crashed by more than 30% from its highest point in 2021.
Beneath the surface, the situation has been much worse, with shares of companies like Carvana, Wayfair, Teladoc, and Zoom Video crashing by more than 50% from their highs.
Read a review of the best cryptocurrency exchanges to buy Cardano.
The Cardano price has risen recently because signs of bottoming among risk assets have emerged. For example, the Nasdaq 100 index has risen sharply in the past few days while the US dollar index has slipped from its highest level this year.
Another reason why the Ada price has bounced back is that there is an upcoming Vasil hard fork that is intended to make the network faster and more secure. Historically, cryptocurrency prices tend to do well ahead of a major upgrade.
Still, Cardano’s key challenges remain. First, there are concerns about the blockchain industry now that key segments have declined. Second, there are issues with the lack of appetite for Cardano’s ecosystem itself.
Cardano price prediction
Turning to the daily chart, we see that the Ada price has been in a strong downward trend in the past few months. The coin managed to move below the important support level at $0.7491, which was the lowest level in February this year. It also dropped below the key support at $1, which was the lowest point in July.
Cardano has moved below the 25-day moving averages while the Relative Strength Index (RSI) has moved above the oversold level. Therefore, with the Nasdaq 100 recovering, there is a likelihood that the coin will keep rising as bulls target the key resistance at $0.7491, which is about 50% above this level.
