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Investors and analysts are trying to predict Cardano’s (ADA) price’s future performance. As the price continues to show red numbers, a top crypto analyst considers that ADA is “right where it should be.”
Cardano Loses 10th Spot Against Telegram’s Toncoin
Cardano’s recent spotlight has highlighted its disappointing price performance and lack of appeal for traders. Despite its technology and strong community, the ecosystem lacks the activity and demand of other chains like Solana.
Recently, Charles Hoskinson defended the project, stating that “Cardano always wins,” referencing a poll ranking the best Layer-1 networks. Moreover, Hoskinson took another jab at Solana’s network problem after its recent transaction failure rate reached 75%.
Nonetheless, on Tuesday, ADA lost its spot in the top ten cryptocurrencies after being flipped by Toncoin (TON). According to CoinGecko data, Cardano’s market capitalization of $20.1 billion was surpassed by TON’s $23.3 billion market cap. As a result, ADA’s spot as the 10th largest cryptocurrency by this metric was taken by TON.
ADA drops to be the 11th biggest cryptocurrency by market cap. Source: CoinGecko
Per CoinMarketCap data, ADA remains in the top ten cryptocurrencies, ranking ninth on the website’s list before being flipped.
ADA Is “Where It Should Be”
Last week, crypto analyst Ali Martinez revealed that ADA’s whale activity was “experiencing a lull.” To the analyst, whether this was a signal of further price consolidation or a drop remained to be seen.
Some believe that TON’s overtaking of Cardano’s place on the list highlights some of the ecosystem’s problems. Martinez reiterated his prediction made around the time Bitcoin registered its latest all-time high (ATH) of $73,373. At the time, the analyst considered that ADA resembled the pattern observed from 2018 to 2021.
During the period observed by Martinez, Cardano’s token went through a long consolidation period, with the price hovering between $0.026 and $0.082. After breaking out of this resistance level, ADA’s price surged to $0.35 in the following weeks before continuing its upward trajectory to its ATH of $3.09.
According to the analyst, if that fractal continued during the following weeks, investors should “anticipate ADA consolidating in the $0.55 to $0.80 range. This would be followed by a surge to the $1.7 support level.
After another consolidation period, the stage would be set for the token’s price to “breakout to $5,” the analyst considered.
Almost a month later, the analyst considers that “nothing has changed for Cardano.” Martinez reaffirmed the price consolidation between the $0.55-$0.80 range and subsequent breakout, as “ADA is exactly where it should be.”
Despite the analyst’s optimistic forecast, ADA’s price of $0.5762 remains 81.5% below its 2021 ATH. At writing time, the token dropped 5.4% from the previous day. Additionally, its performance has decreased by 3.6% and 22.3% in the weekly and monthly timeframes.
However, the token’s market activity has surged 6.6% in the last 24 hours, with a daily trading volume of $502.1 million.
ADA's performance in the 1-day chart. Source: ADAUSDT on Tradingview
Featured Image from Unsplash.com, Chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
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