The overall price action in the cryptocurrency market during 2021 has been an extension of the bull-run witnessed over the last months of 2020. Cardano (ADA) has since picked up a strong bullish momentum and managed to steal the show among the altcoins sphere, setting its tone as a real competitor among the majors.

Nowadays, according to Coinmarketcap, ADA exchanges hands at $2.22, with a market capitalization of around $72.90 billion, standing at fourth place in the ranking of the largest cryptos by market cap.

The project founded by Charles Hoskinson has also seen some improvements on the blockchain that bolstered the confidence among the virtual currency during the first months of the year. Most recently, in September, Cardano deployed its Alonzo hard fork.

Now, after cracking the $2.00 threshold and consolidating its yearly gains above that neighborhood, crypto traders are eyeing the next year’s forecasts. AI-based forecast models like WalletInvestors are putting ADA at $4.587 as of press time from a yearly perspective, while its five-year forecast says that Cardano’s coin could skyrocket towards $14.05

So, what would be the future of the price after the ongoing consolidation around $2.00 in 2022?

ADA Technical Analysis for 2022

As the year-end period looms and Bitcoin (BTC) is finally cracking above $60,000, which is the latest critical hurdle ahead of its all-time highs, ADA has been trapped in some sort of rangebound that hasn’t been resolved since the lows tested during September 21 at $1.90.

Suggested articles

Bloom Helps DeFi Go Beyond Collateralized Lending with OnRampGo to article >>

As a contraction has been developed across the board, the 200-period simple moving average (SMA) at the H4 chart is capping gains and limiting any further advance of ADA above $2.40.

Cardano ADA Price Analysis
ADA H4 Chart

That said, bulls need to crack above such an area in order to allow a golden crossover of the 50-period simple moving average with the 200 SMA and thus bolstering the bullish case. A golden crossover in the H4 chart is significant in the crypto markets, given that it’s a solid signal that could unleash a bullish force that can strengthen further. If that’s the case, ADA could prepare the ground for a bullish 2022 year that could take it to test levels around $5.00.

In fact, another forecast model, LongForecast, put the price of ADA at the Q4 2022 around $3.24, which is the average price that Cardano’s coin could aim in a possible bull-run.

Gene Simmons and ADA

But is this a too-optimistic view towards ADA? Ask Gene Simmons, rock legend and Kiss bassist who is a well-known ADA investor.

He claimed in February to had bought ADA coins and confirmed recently in an interview that he’s still holding them, suggesting that his investment has doubled since then. Moreover, Simmons said that he plans to keep holding his cryptos for at least ‘a decade.’


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *