Since you’re browsing the internet for Cardano price prediction, it means that you want to either:
- Invest long-term
- Make a quick buck
- You’re just testing the waters
Either way, you’re in the right place.
That’s because I’m analyzing Cardano’s price for the long-term investors and also for those with a much shorter time horizon.
In addition to that, I update this article on a weekly basis so you get the hands-on market view and can be sure you’re reading about the current market situation and not something that’s no longer relevant.
What you can expect from this price forecast
I’m keeping it simple, so you don’t have to worry about the technical language.
What you can expect is a sound analysis based on the historical data of Cardano compared to the current market sentiment.
Before I dive into it, just note this:
Markets are run by people and people are unpredictable — especially when external factors such as FUD or other fundamental drivers come into play.
This analysis will narrow down the price outcomes to a few most likely to occur and what you can’t expect is a crystal-ball-like stuff.
I won’t tell you the exact date when Cardano hits $1 a coin — nobody will (or should), and if they do, just run.
What I will show you though, is how I’ve arrived at feasible targets for Cardano to reach.
Realistic long-term price prediction for ADA
Here’s a daily chart of Cardano against the dollar on the Binance exchange:
As you can see, the price has been meandering down since the all-time high set on January the 5th.
At the moment, Cardano is trading at its all-time low of $0.058 which is lower than on the debut day back in December 2017 — breaking a significant support at $0.079 (absolute bottom).
This tells you a few things:
- There’s now no bottom (absolute bottom was pierced through recently)
- It makes it extra hard for any reasonable entry point
- You can’t set any reasonable stop-loss orders
Why is this?
Frankly, it’s a guessing game at this moment in time.
It could very well be that the recent market drop was caused by the fork of Bitcoin Cash and diverting hash power from BTC to BCH by Bitmain causing a 15% drop in BTC/USD which pulled down other cryptos as well.
It might be the case or might not, but the fact is that the market had dropped quite significantly.
Going back to the price analysis, let’s keep it real.
Because of the above, it makes it tricky to come up with a reasonable entry point.
Nobody knows how far the market is going to drop and if it’s still headed in that direction.
As of today, it slowly starts to look like it had sort of bottomed out as the price started going sideways after the rebound (automatic rally).
It carries extra risk to enter the market at around $0.058 as the bottom hasn’t been confirmed yet, but on the contrary, the move might pose lucrative gains if the price was to reverse from this point upward.
If you’re an aggressive investor, the $0.058 mark could be an excellent entry point with a stop loss set at $0.0494 to target just below of R1 at $0.39 generating over 500% increase for long-term investors.
Potential gain: 500%
Potential loss: 15%
You’re risking relatively small for an extremely high risk to reward ratio.
If the price was to trigger your SL, you would revert back to look for another reversal point and take it from there.
I don’t recommend entering the market without a SL or setting it much lower than indicated above.
To cut loses short is one of the best ways to move forward and make money in any financial market, and especially in cryptocurrencies.
If it was the case that the market would pick up and start travelling far north, your next target would be R2.
As of today, the same entry principles apply as if you were a long-term investor because the price might very well be at the rock bottom after the recent decline.
However, if you’re trading on a much smaller time horizon, you might want to consider significantly smaller targets.
Potential gain: 50%
Potential loss: 15%
This is a short-term outlook that could generate 50% gain for a possible loss of 15%.
Make sure you set a recommended SL and revisit to find another entry point if it was triggered.
If you want a tighter stop, you should lower your target expectations accordingly — as a general rule of thumb, try to aim for at least 1:3 risk to reward ratio.
Preserve your capital
It’s a good idea to make sure you don’t just let your position ride out the market.
Keep an eye on how the price develops and act accordingly.
You have a couple of options to preserve your capital during the trade:
- Bump up your stop loss order to (or above) your entry point depending on how far up the price is above your entry
- Liquidate a portion of your trade to capitalize on realized gains on the way up to R1 or r1 depending on how much you’d want to bag along the way
- Raise the stop again to the next significant support level if you decide to liquidate some of your position
Current market sentiment
Let’s face it.
A lot of folks thought we were at the rock bottom of the market cap as Bitcoin and altcoins have been trading in a confined price range for the past few weeks.
That was the case until the recent drop wiped out $30 billion in the space of a couple of days.
The total decline going from January 2018 ($829B) until today ($184B) results in a 78% drop.
This indicates that the crypto space is still looking bearish and that might not be the end of it.
The recent drop, as mentioned before, could be the result of the shift in hash power for BTC but it cannot be taken for granted.
Nonetheless, we are at the lowest point this year and if you’re willing to take on the extra risk, these entry points might be quite viable.
However, before that drop the market was going sideways with a somewhat bullish outlook:
If it was the case that the recent $30 billion drop was in fact caused by the fork, things start looking differently and the premise of the absolute bottom holds true.
It’s up to you to decide whether the proposed entry points are valid or not and where the actual bottom might reside considering the above.
Either way, as of today, Cardano poses a good investment opportunity and could yield decent gains for both the short-term and long-term investors. But then, the price might go even lower, so you should be careful.
If you want to find out what Cardano is about, I recommend reading the Beginner’s Guide to Cardano here.
BCH – qrr63e483sl5c0rzqjf8pnds26pegex0h52gc6tndx
ETH – 0x2F678cF4A0bc4B2D6F4e22A3A1bfC4BA746BDDBe
BTC – 3DsiPb26ugH4N7urkq6P3T9meSp2NMNqan
LTC – MU4iw9ydysAu9egDsp6gmiQ45DX6ujYBqQ
Disclaimer: You should do your own due diligence, research and analysis before you invest any money in cryptocurrencies. Cryptocurrencies are highly volatile and classed as high-risk investments. You should never invest any money unless you’re prepared to lose your capital. The author of this article holds the said assets and might be biased towards them.