One coin that analysts still seem bullish on is Cardano’s native token ADA. Despite all the confidence that still exists in the digital asset, the price continues to fall and has fallen below several key support levels.
Analyst takes a deeper look at Cardano
In a interview Hosted by Altcoin Daily, crypto analyst Hashoshi shares very optimistic views on the Cardano network. He begins by explaining that the design decisions made by the Cardano network are among the best in the space. Going further, Hashoshi praises the speed of development of protocols on the blockchain as projects continue to evolve.
“Cardano has done things completely differently almost from the beginning,” the analyst said. “They are currently in a good position, despite what people may think, to make a resurgence if the conditions are right,” he added.
For ADA’s price, the analyst explains that if liquidity returns to the crypto space, the digital asset’s price could rise above the previous all-time high of $3.10. “The community is still strong… and I think you’ll see them surpass the previous all-time record.”
Hashoshi isn’t the only analyst who is optimistic about ADA’s price going forward. Another analyst Kara Szabo has predicted that the digital asset’s price could rise to $5. Szabo too purchased $20,000 worth of ADA in early September, indicating the analyst’s belief about the altcoin’s bullish performance going forward.
“My conservative price estimate for the next bull run is $5,” Szabo said on X. “I know some people will think this is low, but this is twenty times the current price!! For a large cap market, this could be one of the best crypto strategies at the current price.”
Here is my floor #Cardano $ada price prediction for the coming bull market. This could very well be the best performing large cap that investors are sleeping on:
✅ Ada has a maximum supply of 45,000,000,000 tokens, of which approximately 35,045,020,830 of those tokens are in… pic.twitter.com/k4Hs89q1lG
— Kara Szabo (@kararesurrect) September 9, 2023
Cardaon's token plunges to $0.24 | Source: ADAUSD on Tradingview.com
But why is the ADA price dropping?
Despite the bullish sentiment surrounding the digital asset, ADA price continues to struggle in the market. The reason for this decline can be attributed to the fact that a significant portion of ADA is not deployed from smart contracts, causing total ADA deployment to slide downward.
Data from DeFi tracker DeFiLlama shows that the total number of tokens staked on the Cardano network fell from over 777 million on September 2 to 733 million on September 11. This meant that more than 43 million ADA had not been deployed and were likely making their way to the open market. holders sold their stock.
Staked tokens nosedive in September | Source: DeFiLlama
If such a large amount is dumped onto the market during a period of low liquidity, the altcoin could continue to fall, especially if more ADA is not staked to be sold on the open market.
However, ADA’s long-term prospects remain optimistic as the Cardano network remains one of the networks seeing the most development. As developers flock to the network, investors are expected to follow suit.
At the time of writing, ADA is struggling at $0.24, down 2.33% in the past day and 5.10% in the past week.