In 2022, the cryptocurrency market faced challenges, unlike the successful 2021 when multiple cryptocurrencies reached record values and the overall market capitalization of the industry surpassed $3 trillion. As investor confidence decreased to low levels, the market saw its market capitalization fall to over $800 billion. Cardano’s ADA, a cryptocurrency, was also impacted by the market downturn, dropping to its lowest point of the year at $0.239.
However, ADA bulls, or investors who believe the price of ADA will increase, found support at this level and used it to launch a rally, or a period of increasing ADA values.
ADA sees strong start to 2023
Since December 30, 2022, the cryptocurrency ADA has experienced four consecutive days of gains in value. As of the second day of 2023, ADA has remained in the green, or has continued to see an increase in value.
At the time of publication, ADA was being traded at a value of $0.25, with a 4% increase in the past 24 hours. If the bulls, or investors who believe the price of ADA will increase, can maintain their momentum, it is possible that ADA may reach or even surpass the value of $0.266. This means that the price of ADA may continue to rise, potentially reaching a new high.
Dan Gambardello, the founder of Crypto Capital Venture, a company that provides venture capital for cryptocurrency and blockchain projects, predicts that Cardano, a cryptocurrency, will be a top altcoin, or alternative cryptocurrency, to hold in 2023. He believes that many people may not realize its potential, or the value that it can bring, until it has gained 1,000% in value again. This means that the price of Cardano may increase significantly, potentially reaching a new high.
Is this just the beginning?
As previously reported, crypto trader Gareth Soloway believes that the market may see a “January Effect Crypto Pop,” or a short-term increase in the price of cryptocurrencies, in the first month of 2023 before another decline, or decrease in price, sets in. This means that Soloway predicts that the market may see a temporary increase in value at the beginning of the year, but that this may be followed by a decrease in the near future.
Blockchain analytics firm Santiment has identified three factors that may work in favor of ADA, a cryptocurrency, in the short to medium term. First, the firm believes that ADA was significantly undervalued, or was being traded at a price that was lower than its true worth. Second, the selling pressure on ADA has decreased, or there has been less pressure to sell the asset, as it reached lows of $0.23 in 2022. Third, “whale” addresses, or large holders of ADA, have been aggressively accumulating the asset, or buying more of it.
The Twitter account ADA Whale, which is focused on the Cardano community, predicts that the next bull market, or a period of increasing cryptocurrency prices, could be particularly exciting and expects to see inflows, or investments, into the DeFi ecosystem, or the decentralized finance industry. The account has set a target for the total value locked, or the total amount of cryptocurrency being used in the DeFi ecosystem, of $250 million to $500 million.