Cardano’s native token, ADA, has been struggling to maintain its price despite the optimism of analysts. The price has fallen below several key support levels, causing concern among investors. However, some analysts remain confident in the future of ADA and believe that it has the potential to rebound.
In a recent interview with Altcoin Daily, crypto analyst Hashoshi shared his optimistic views on the Cardano network. He praised the design decisions made by the Cardano network, stating that they were among the best in the industry. He also lauded the development speed of the protocols on the blockchain, highlighting the continuous growth of projects.
“Cardano has done things differently from the start,” said the analyst. “They are currently in a good position to make a comeback when the conditions are right,” he added.
Regarding the price of ADA, Hashoshi explained that once liquidity returns to the cryptocurrency space, the price could rise above its previous all-time high of $3.10. He believes that the strong community behind Cardano will play a significant role in surpassing the previous all-time high.
Hashoshi is not the only analyst who holds an optimistic outlook for ADA’s future price. Analyst Kara Szabo has predicted that the digital asset could reach $5. Szabo, who purchased $20,000 worth of ADA in early September, believes that Cardano could be one of the best crypto options for investors during the upcoming bull market.
However, despite the positive sentiment surrounding ADA, its price has continued to decline. One reason for this decline is the decrease in the number of ADA staked in smart contracts. Data from DeFi tracker DeFiLlama shows that the total number of tokens staked on the Cardano network has decreased from over 777 million on September 2nd to 733 million on September 11th. This suggests that over 43 million ADA tokens have been sold by holders who have chosen to unstake their assets.
When a significant amount of ADA is unleashed onto the market during a period of low liquidity, it can further contribute to the decline in the altcoin’s price.
Despite these short-term challenges, the long-term prospects for ADA remain positive. The Cardano network continues to attract a large number of developers, and it is expected that investors will follow suit. It is worth noting that at the time of writing, ADA is trading at $0.24, representing a 2.33% decrease in the last day and a 5.10% decrease in the last week.
Investors and observers are advised to stay updated on market trends and developments to make informed decisions.