Cardano (ADA), the cryptocurrency that powers the decentralized smart-contract-enabled layer-1 Cardano blockchain protocol, has been ebbing higher on Thursday, continuing its positive run that started after the cryptocurrency hit multi-month lows on Monday.
ADA was last changing hands just above $0.25 per token, up 6% versus Monday’s lows under $0.24.
While Cardano is still down around 2% for the month, over 30% versus its July highs around $0.38 and over 45% since April’s yearly highs above $0.46, its latest rebound has seen the cryptocurrency’s market cap rise back above that of Dogecoin’s.
As of Thursday, Cardano’s market cap was just above $8.8 billion whilst Dogecoin (DOGE)’s was just under $8.8 billion, as per CoinGecko.
While Cardano has stepped up in the crypto rankings – it is now the seventh largest crypto by market cap (and DOGE the eighth) – the bulls shouldn’t declare victory.
That’s because price predictions remain bearish thanks to Cardano remaining stuck within a bearish medium-term trend.
Price Prediction – Can Cardano (ADA) Reach $10 in 2023?
Despite its recent rebound, ADA/USD remains stuck below both its 21DMA and a downtrend that has been in play since late July.
A break to the north of the resistance around $0.26 would really be needed for Cardano (ADA) to get some serious bullish traction.
If ADA was able to break above $0.26, the first levels to target would be the 50DMA at $0.275, support-turned-resistance at $0.28 and then the 100DMA at $0.284, before a possible retest of support-turned-resistance at $0.30.
In terms of the cryptocurrency’s longer-term outlook, the picture is mixed.
On the one hand, the Cardano ecosystem continues to develop and continues to show every sign of being a major future play in the crypto space, which is expected to experience significant long-term growth.
But on the other hand, Cardano’s outlook is clouded by the US SEC’s attempts to label the cryptocurrency as an unregistered security, which is going to have a big negative impact on its adoption/demand in the US until legal certainty is reached.
Cardano also continues to struggle to attract significant crypto capital to its blockchain, as evidenced by its trade value locked (TVL) of still under $200 million as per DeFi Llama, well below some of its major smart-contract-enabled peers.
A broad crypto rally could lift ADA back towards its earlier yearly highs in the $0.40s, if Bitcoin was able to press back into the $30,000s.
But as to whether ADA can 40x to hit $10 this year, that remains highly unlikely.
While 2023 certainly seems to mark a year of stabilization in crypto prices versus 2022’s bear market, the conditions don’t yet appear to be there for a melt-up and return to record highs.
The Fed is still adamant on holding interest rates at close to multi-decade highs for some time, meaning risk-taking across financial markets remains somewhat dampened.
A token price of $10 also implies a market cap of around $350 billion.
The Cardano ecosystem will need to see much more development and adoption to justify such a price tag, and that may take years.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.