A 557% hike for Cardano – Is it possible?

A 557% hike for Cardano - Is it possible?

Over the past few months, a host of ecosystem-centric developments has pushed Cardano into the top-5 of CoinMarketCap’s charts. With the alt trading at a level almost 38% lower than its ATH at press time, some Cardano optimists have been claiming that its price might hit the $10-mark by the end of 2021.

Cardano’s first smart contract written in Plutus went live on the Alonzo testnet recently. While Cardano’s updates have been well-received in the community, ADA has been struggling due to regular market corrections. Amid this low volatility phase, the pseudonymous crypto-trader known as Capo gave some huge end-of-the-year price predictions for Cardano (ADA), Bitcoin (BTC), and Ethereum (ETH).

$BTC > $100k, $ETH > $10k and $ADA > $10 are still very likely this year.

— il Capo Of $NOIA (@CryptoCapo_) June 13, 2021

The aforementioned are curious predictions, however. Think about it – Based on the ongoing bearish market trends, Capo’s predictions imply a 156% rally for Bitcoin, a 302% hike for Ethereum, and a massive 557% surge for Cardano. ADA, even though it started with a bullish trend towards the beginning of the year, hit an all-time high of $2.4 in May 2021, with its price later plunging significantly when the market crashed.

ADA was trading at $1.5 at press time and was oscillating between its support at $1.35 and resistance at 1.81. Right now, over the buzz of environmental concerns, Cardano has also gained traction because of its efficient Proof of Stake process.

What’s more, ADA’s ROI over the past year, at press time, was 1716.11%, a figure that makes the prediction about huge gains in 2022 sound legit. However, its 30-day ROI was -24.32% and its breakeven multiple was 1.62, findings that implied how a massive gain, as suggested by Capo, could be a little too optimistic right now.

The Shelley hard fork was a potential catalyst for ADA’s 2020 price surge. Ergo, another surge after the Goguen stage is completed cannot be ruled out. However, looking at the bearish market trend and BTC’s price fall the possibility of a ten-fold price rally for ADA would be nothing short of a wonder. In hindsight, news about Cardano surpassing Coinbase and Roblox in market cap, while trailing Vodafone by $0.9B, can also boost its price.

Now, there are different schools of thought when it comes to ADA’s price. For instance, according to a trading website, ADA’s price will oscillate between $1.265 and $1.86 while another website says that its price would swing between $2.271 and $2.484 in January 2022.

Capo also predicted that the Bitcoin Dominance Index might continue to fall until October. This downtrend could push altcoins to make big moves in the coming months.

As most alts underwent massive market corrections against Bitcoin over the last few weeks, Capo asserted that a pullback offers a chance to buy the dip. He concluded,

“Yes, ALTS/BTC charts look like sh** right now. But instead of complaining, try looking for opportunities. The best opportunities arise at times like this.”