Cardano Price Prediction: ADA Can Return to $0.55 if It Can Stay Above 50DMA

If macro sentiment continues to improve and Vasil hard fork optimism takes hold, Cardano might quickly test this week's highs.

Market Report

As the US trading day begins, the feeling toward cryptocurrencies is still mostly positive. Bitcoin is currently trading about $23,500, while Ethereum is trading around $1,600, both of which are close to weekly highs. Major US equity indexes are likely to conclude the week solidly in the green, despite a decline in big cap US social media companies after disappointing Snap and Twitter results. This week, these indices broke out to multi-week highs.

This week, cryptocurrency has benefited greatly from the bullish outlook for global macro trade conditions. The market capitalisation of all cryptocurrencies was recently at $1.04 trillion, up around $100 billion from the beginning of the week.

Citi Thinks Concerns Over Crypto Contagion Have Peaked

The fear of cryptocurrency contagion has likely peaked for the time being, according to US megabank Citi. The recent lowering of the staked Ether (stETH) to Ether (ETH) discount, which the bank's research team believes is an indication that liquidity stress may have subsided, was mentioned in a note that was issued on Wednesday.

Citi said that it believes the "acute deleveraging period" has ended now that many of the biggest hedge funds, dealers, and market makers in the industry have declared their exposures. Additionally, the bank saw a slowing in the withdrawals from stablecoins and cryptocurrency ETFs (ETFs). If Citi is correct, the industry may benefit in the coming months from a reduction in concerns of a crypto winter or contagious outbreak.

Price forecast for Cardano (ADA)

After failing in a previous effort to go over $0.51, the native token of the Cardano blockchain, ADA, was last trading nearly exactly at $0.50. That indicates that ADA has remained in a pivot on either side of its 50-Day Moving Average for a second day (which is now at $0.493). It would be a positive indication for the price movement over the weekend and into the following week if it can close above its 50DMA.

Following Monday's rise over a significant downtrend that had been limiting the price movement since mid-June, short-term traders are still positive on ADA. Even though it just retreated significantly from a test of resistance in the $0.55 region earlier in the week, it has been able to stay above this downtrend.

A retest of the $0.55 level is probable if the bulls are able to take control in the coming days. The cryptocurrency may go higher toward the late-May highs around $0.69 if the Cardano bulls can get it over this level.

In the next weeks, Cardano's Vasil hard fork update will continue to be a major topic since it is expected to significantly improve the blockchain's capabilities and scalability. Analysts have predicted that when Charles Hoskinson, the inventor of Cardano, announces an official date for the update, ADA may see a significant increase.

Next week's Fed policy statement and Q2 US GDP statistics will be two additional important events to keep an eye on. Analysts believe that the Fed may provide a little less aggressive rate rise view for 2023 as a result of the deteriorating US economic outlook and a recent easing of core price pressures.

It is largely anticipated that the central bank would undertake a second consecutive 75 bps rate increase. A more dovish slant during the meeting might provide speculative risk assets like equities and cryptocurrencies, like Cardano, a considerable short-term boost.

New Multi-address Transactions in Cardano It could include a special sauce.

A recent addition to Cardano's Eternl Wallet, the ability for multi-address transactions, generated some interest on social media. This kind of capability, according to one Twitter user with the Cardano community-focused account ADA whale, may be part of Cardano's "secret sauce" and the reason it will be a strong competitor to control the world's financial infrastructure in the future.

Using this new capability, users may transmit 100 assets to several destinations in one transaction, according to another Twitter user. In comparison, transmitting 100 assets would need 100 distinct transactions on the Ethereum or Solana blockchains. Supporters of Cardano contend that this refutes the claim that a blockchain with more transactions per second is automatically superior.

Cardano's Failure Indicates Head of the Ethereum Ecosystem at Blockdaemon

During this week's Ethereum Community Conference (EthCC), Freddy Zwanzger, the head of Blockdaemon's Ethereum ecosystem, told Cointelegraph that he expects Ethereum will continue to hold the top spot among smart contract platforms. He said, "All of the Ethereum killers from back in the day failed, and I don't anticipate them to succeed at all."

Cardano and other blockchain initiatives like Polkadot and Solana are often referred to be "Ethereum killers." Zwanzger's statement implies that Cardano will fall short of its goal of becoming the leading blockchain.

Co-founder Vitalik Buterin discussed the "Surge" update at the Ethereum Community Conference in Paris this week. The "Surge" upgrade will come after the Ethereum merger, which is expected to happen in September. The Ethereum network's capacity for transactions will increase to around 100,000 per second during the "Surge," according to Buterin.