Key Insights
- Cardano price has been hovering between the 20-day and 200-day EMAs.
- Experts predict that ADA price will hit the $7 mark if the U.S. government approves Cardano’s blockchain.
On a wider time frame, the Cardano (ADA) price has witnessed a strong bullish rally. However, the price has undergone a major correction phase and is falling through a descending channel. Currently, Cardano price has been struggling between the 20-day and 200-day EMAs.
According to analyst Tim Warren, ADA might reach $7 if Cardano’s blockchain is used to track government spending in the US.
Can ADA Price Hit $7 Mark? Analysts Weigh in
Some analysts predict that ADA will follow a more ambitious trajectory beyond the short-term price fluctuations.
According to Tim Warren, Cardano will surpass Dogecoin and USD Coin to be one of the top six or seven cryptocurrencies in terms of market capitalization.
Interestingly, Warren’s analysis is predicated on two important elements: a robust bull market cycle and the possible use of Cardano’s blockchain for tracking government spending in the United States.
In this case, ADA’s price would drop to about $7 and Cardano would reach a $250 Billion market capitalization.
The speculative prediction draws attention to the substantial growth potential that would result from broad adoption.
Charles Hoskinson, the founder of Cardano, is still advocating for more transparent crypto laws, concentrating on the FIT21 bill that would classify digital assets as commodities or securities.
To influence policies, he supports integrating scholarly research and collaboration with government agencies. Stability and avoiding regulatory overreach in the cryptocurrency sector are the goals of Hoskinson’s initiatives.
Is Cardano Price Ready to Skyrocket Post Breakout?
When writing, ADA crypto was trading at $0.783 which has increased by 1.2% over the past 24 hours. The market capitalization was $27.46 Billion and the 24-hour trading volume was around $668.15 Million.
Based on the technical chart, the ADA price has remained bearish and has melted to the lower trendline. However, buyers have bounced back and have exceeded the 200-day EMA.
Cardano price has been defending the 200-day EMA, which might attract buyers. If the ADA price surpasses the 20-day EMA, it might extend to the upper trendline.
Once the price breaks out from the descending channel, strong buying momentum can be anticipated.
Conversely, if the ADA price dives below the 200-day EMA, it may drop to the lower trendline. If the price starts trading below the descending channel, buyers might lose faith in ADA.
Here, most traders and investors might prefer to book profit which may lead to strong selling pressure.
Cardano Price Prediction Based on Technical Chart
While Cardano finds itself in a challenging correction phase, the potential for significant growth remains.
Analysts believe that if the U.S. government adopts Cardano’s blockchain for tracking spending, ADA could surge to the $7 mark, aligning with broader bullish trends in the cryptocurrency market.
If Cardano can break out of its descending channel and maintain momentum above these key indicators, it could pave the way for substantial gains.
However, any dip below these levels could lead to selling pressure, emphasizing the need for careful monitoring of market dynamics and regulatory developments.
Overall, the future of ADA appears promising, contingent on both technical factors and external adoption triggers.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
Hammad Qureshi is an analytical writer with a strong focus on blockchain trends and cryptocurrency market movements. With a background in data analysis and reporting, Hammad’s work provides readers with detailed explorations of the technical and economic factors driving the crypto industry. His investigative pieces are valued for their depth and accuracy.