As the cryptocurrency market continues its rollercoaster ride, Cardano (ADA) investors are left pondering one pressing question: Will Cardano recover from its lows and reach the elusive $1000 mark by 2040? This ambitious goal has captured the imagination of many ADA enthusiasts, but it’s not without its challenges.
In this blog, we’ll explore the factors influencing Cardano’s potential for recovery and growth over the next two decades. From its groundbreaking milestones to the evolving challenges, we’ll dissect the possibilities and obstacles that lie ahead for ADA.
Can Cardano recover from its 2024 lows?
Determining whether Cardano can recover involves a dynamic examination of a multitude of factors. Take a look:
Is it possible for Cardano to recover – Image via Cardano
Crypto market in 2024
2024 hasn’t been kind to the crypto market, as we have observed that a majority of digital assets have been hit by January blues. The downfall of Bitcoin (BTC) has caused a ripple effect in the ecosystem.
Major players like Ethereum (ETH) and Solana (SOL) have been struck, and Cardano is no exception. ADA has declined around 5% over the past week and around 1% over the last 24 hours. Most notably, in January, its performance reflected a substantial decrease of approximately 25%.
Cardano market performance
ADA experienced a lot of challenges in 2023, as it was gripped by bearish market conditions. However, a notable recovery was observed in the fourth quarter of the year.
Remarkably, it appreciated by approximately 150% over the course of 2023, demonstrating its resilience in a volatile market. In December 2023, ADA broke through all previous resistance levels, reaching a peak price of $0.6.
This breakthrough coincided with the highest developer activity observed on the platform, signaling a robust and evolving ecosystem. Additionally, the burgeoning non-fungible token (NFT) sector within the ADA platform saw an increase in sales volume during this period, further bolstering the currency’s market presence.
The Moving Average Convergence Divergence (MACD) indicator also exhibited bullish signals in the latter part of 2023. Moreover, the MACD line reached its peak at the end of December, recording a value of 0.06.
However, a subsequent decline was noted, with the MACD line converging towards the signal line and the histogram values diminishing. As of the latest data, the histogram stood at 0.008, the signal line at 0.04, and the MACD line at 0.05, signaling increased bearish pressure.
After a sharp increase in October, the On-Balance Volume (OBV) peaked at 60.66 billion by the end of December. However, as of the latest data, the OBV value has slightly decreased to 59.74 billion.
Cardano technical analysis – Image via TradingView
ADA daily chart
While ADA’s weekly chart displayed bullish signs, its daily performance tells a contrasting story, marked by a consistent downtrend. In January 2024, ADA experienced a notable setback, dropping below the pivotal $0.5 mark.
The MACD values underscored the negative trend, with the histogram at -0.005, the signal line at -0.016, and the MACD line deeper in the negative territory at -0.022. Lastly, the OBV saw a decrease from 45.02 billion at the beginning of the month to 44.41 billion at the current time.
Will Cardano go up in 2024?
Predicting the future price of Cardano in 2024 involves considering various market dynamics and technical indicators. The recent decline below the $0.5 mark did signal a weakening bullish momentum. If this trend continues, ADA can likely fall to $0.3.
With the current trading price of $0.46, the bulls are struggling to maintain the support around the $0.4 level. However, for now, ADA has managed to sustain itself above it, which introduces a slightly optimistic scenario. This resilience is a crucial factor in its future trajectory.
If ADA maintains its position above this threshold and successfully attempts to cross back over the $0.5 mark, it could indicate the beginning of a recovery phase. Critical to this will be its capacity to attract and retain investor interest, which is often influenced by broader market sentiments, developments within the Cardano ecosystem, and the overall performance of the cryptocurrency market.
Expand your investment portfolio by exploring the 9 best altcoins to buy during a crypto bull run alongside Cardano.
Will ADA reach $1000?
The journey of ADA in the cryptocurrency market has been a subject of much interest and speculation. Initially priced at a modest $0.0024 during its pre-launch sale, ADA saw a meteoric rise to an all-time high (ATH) of $3.10 in 2021.
In its journey so far, ADA has marked a staggering price appreciation of around 2000%. This growth trajectory has been accompanied by significant upgrades and changes within the network.
Future of Cardano blockchain – Image via TradingView
Factors in favor of Cardano’s growth
Increased decentralized exchange (DEX) volumes
According to data from Artemis, DEX volumes on the network have surged from around 1.8 million to 5.98 million over the course of a year.
Alongside this, the Total Value Locked (TVL) in the network has shown a noteworthy increase from 76.9 million to around 334 million in the same period. These figures reflect a growing interest and engagement in the ecosystem.
Boom in Cardano’s smart contracts
2024 marked a notable milestone for Cardano, particularly in the realm of smart contracts. As of January 22, 2024, the blockchain boasted 24,050 V1 and V2 Plutus smart contracts.
This marked a significant increase of 67% (9,671 contracts) since the beginning of the year. The rapid expansion highlights Cardano’s growing capabilities and adoption in decentralized applications (dApps).
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Factors against Cardano’s recovery
Declining daily activity
However, not all metrics point upward. The network has seen a decline in daily active addresses, dropping from around 76,000 to 32,000 over a year, alongside a decrease in daily transactions from approximately 84,000 to 64,000. These drops suggest a cooling off in network activity, which could have negative implications.
Falling fees
The reduced activity has also impacted the network’s economic health. According to Token Terminal, the fees generated on the Cardano network fell by around 56% in a year.
This decline could affect the incentives for validators and stakers and raise concerns about the network’s sustainability and its ability to attract and retain participants.
Dropping development activity
Additionally, a decrease in development activity, evidenced by a 41.7% reduction in code commits, and a fall in social volume around ADA point towards a potential dip in popularity and engagement within the community.
Cardano’s journey to $1000: Verdict
As per the current price and market state, ADA can likely target $1 and then $10 in a potential bull run. However, the ambitious goal of $1000 per ADA seems far off in the short to medium term.
Such a milestone would require not only a substantial market shift but also significant advancements and adoptions within the Cardano ecosystem. The path to such a valuation is fraught with challenges and uncertainties, making it a speculative and long-term possibility.
For a shorter-term perspective, explore our analysis of whether Cardano will reach $100 or $500 by 2030 and the bullish scenarios supporting this growth.
Is Cardano a good investment? – Image via Cardano
Summing up
In conclusion, the question of whether Cardano can recover and reach $1000 by 2040 remains uncertain, but it’s not impossible. ADA’s success will hinge on various factors. Therefore, investors must exercise caution, diversify their portfolios, and stay informed to make sound decisions.
While pessimism abounds in the crypto world, prudent long-term planning and a realistic assessment of risks are crucial. Only time will tell if Cardano can fulfill its potential, and for investors, the journey promises to be as exciting as the destination.
Disclaimer: This blog represents the author’s personal opinions and should not be taken as financial advice. Please consult a qualified financial advisor and evaluate your individual circumstances and risk tolerance before making investment decisions.
