All About Cardano: A Crash Course – Forex Trading Articles

Cardano has been one of the best attempts to solve two problems that BTC fails to achieve: scalability and network scalability. But are good intentions and attempts enough? Does Cardano have a future worth investing in? In this guide, we’ll take a look at Cardano coin value predictions from cryptoanalysts and provide a technical price analysis. Before delving into price analyses and projections, we first wanted to touch on what Cardano is, how it works, and what the project hopes to achieve.

In short, the Cardano project is a smart contract platform. Their slogan is “Making the world work better for all,” and it does so by equipping innovators, visionaries, and changemakers with the technologies and tools needed to spark positive global change. Just as Ripple is to XRP and Ethereum is to Ether, Cardano is to ADA - meaning that Cardano is the open-source blockchain platform on which the ADA token runs.

The platform has five core principles:

People – By Working Together, They Achieve More for the Many. The Cardano project wants to foster a community of thought leaders, scientists, and engineers via a proof-of-stake (PoS) blockchain platform. PoS is considered to be more advanced than proof-of-work (PoW), which is the algorithm that Bitcoin uses.
Purpose – Helping People Trust One Another and Work Together to Build Global Solutions. Cardano’s aim is to help us become a secure, transparent, and fair global society that addresses the needs of the many and the few. It follows a vision of a society that does not need intermediaries – in other words, where power isn’t held by a few accountable people. Instead, individuals should have full control over their interactions, transactions, and data.
Technology – Bringing a New Age of Globally-Distributed and Sustainable Innovation. Cardano is built on the innovative proof-of-stake consensus protocol from Ouroboros and was developed with Haskell. The latter is a functional programming language which facilitates Cardano’s pursuit of evidence-based development and unparalleled stability.
Research – Groundbreaking Research Underlies Pioneering Tech Developments. All of Cardano’s research is peer-reviewed, which is unusual but admirable for a blockchain platform. Because the partners behind Cardano wanted to build a platform with a lasting future, they have challenged and verified the stability and durability of each block of the chain. Leading academics led research that explores sociology, philosophy, behavior, and game theory, while also considering the plethora of platform details that often go unconsidered.
Opportunity – Empowering Businesses by Making the Future of Technology Accessible. Cardano provides developers, individuals, and enterprises with cutting-edge models, technologies, and methodologies. Blockchain technology can answer a number of financial, societal, and technological legacy challenges by taking intermediaries out of essential partnerships and redistributing power.

Cardano powers innovative, globally scalable, and highly-secure solutions, which are constantly being updated and improved upon via a democratic voting system and evidence-based development methods.

The three main features of ADA are:

There is no traditional mining. 45 billion ADA tokens were created in advance, with 35 billion distributed to the creators and during the preliminary ICO. The remaining 10 billion are gradually added to circulation after new blocks are found, and an additional percentage is charged for ownership. Thus, the transitional inflation control scheme is followed.
The Ouroboros algorithm is used for confirmation. It is fully secure and can even be used with bank transactions. However, since the work goes on a modified DPos (delegated confirmation of the share), delegates must confirm the transaction. Since only a small circle of people have control of most ADA coins, it can’t be guaranteed that ADA won’t be artificially inflated.
Cardano has accelerated confirmation. Cardano’s creators saw that Ethereum and Bitcoin work slowly since the blockchain’s chains are growing in length and need additional time for confirmation. With Cardano, users can choose their depth of verification and, thus, increase the speed at the cost of lessened security.

Who Is Behind Cardano?

There are three main entities behind Cardano.

Cardano Foundation

This is an independent standards organization that supervises and oversees Cardano’s ecosystem advancement. The Foundation is both the owner of Cardano and the legal custodian of its protocol – thus, it strives to grow the platform’s international community, drive partnerships and adoptions, shape commercial standards and legislation, and hold stakeholders accountable at each level.

Out of those responsibilities, the most crucial one is driving platform adoption and supporting the community; to do so, the Foundation hosts a governing Council, which is comprised of community managers and a professional executive team. The former group contains many recruits from the actual Cardano community.

The Foundation also has a strong commitment to collaborating with other key blockchain industries, thus helping advance technology and drive adoption among other compatible platforms. The Foundation focuses on awareness, education, integration, and legal frameworks to contribute to the global perception and conversation of blockchain.

EMURGO

EMURGO is Cardano’s enterprise branch - its duty is to boost Cardano via commercial ventures. EMURGO develops and supports commercial opportunities and facilitates business integration into the blockchain system.

IOHK

This is Cardano’s contracted engineering and technology company. IOHK designs, builds, and maintains the blockchain platform and uses high standards of assurance and P2P scientific review.

Factors Influencing Cardano’s Price

There are several factors that could influence the price of Cardano (ADA). In order to make accurate ADA price predictions, we must take all of these factors into consideration, as it makes it easier to forecast growth and decline periods.

Factor 1: Supply and Demand. The largest umbrella factor to consider for ADA (or, really, any type of portfolio aset) is the supply/demand relationship. If a cryptocurrency’s demand is bigger than its supply, the price drives up. But if the supply is larger than the demand, the opposite is true.
Factor 2: Cardano Platform’s Adoption. Cardano has a dual-layer architecture that was developed to let smart contracts and dApps run on its CCL. Thus, Cardano’s success doesn’t just hinge upon the demand for ADA - it will also rise or lower depending on the demand for other cryptos that are built on Cardano’s distributed ledger. Since the demand for dApps has been booming (and will likely continue to increase), ADA’s price will likely be positively impacted in the near future.
Factor 3: Bitcoin’s Price. It is well-documented that BTC’s price has a heavy influence on the price of other crypto tokens. Analysts notice that when BTC has very bullish runs, altcoin patterns follow suit. Why? Well, most investors who hold cryptocurrency have Bitcoin in their portfolios - and if their confidence is high in BTC, this trickles down to altcoins, thus sparking widespread market spikes.

How Has ADA Performed in the Past?

Cardano’s first price action occurred in late 2017, so this altcoin is still in a price discovery phase - that is, it is still finding its value and fair market price. Towards the beginning of 2018, cryptoanalysts predicted that ADA would break through the $1 psychological mark and maybe even keep growing. The first part of the prediction did indeed come true. Cardano had quite a bit of buzz when it first launched, so hype and speculation drove ADA from $0.02 (in October of 2017) to $1.33 (in January of 2018). However, ADA ultimately failed to increase further.

We must keep in mind that 2018 was the beginning of an industry-wide bear market, and many other projects declined during this period of time. Even though ADA was experiencing a downwards price action, Cardano’s development team didn’t give up on the project. They continued working on innovations, such as a “Shelley” update and a new voting system.

Cardano’s price has certainly been bumpy: its temp low was $0.03 in 2018 and hit that same low again in 2019. In fact, 2019’s high was merely $0.10, so that was quite a stagnant year for the altcoin. After a brief rise during early 2020, it then plummeted to $0.025 during the crypto industry’s “Black Thursday” - the crash that impacted all crypto. As of the time of writing, Cardano sits at $0.1803 - which is the best price since mid-2018.

How Did Cardano Perform in 2020?

As mentioned above, Cardano experienced a drop in March of 2020 - however, this happened to all cryptocurrencies across the board. Taking a closer look at ADA’s performance in 2020, though: between February 10th and March 16th of 2020, ADA’s price declined from $0.065333 to $0.027386. However, in July, ADA managed to hit $0.1 and has been slowly increasing since then.

Short-Term ADA Coin Price Prediction for 2021

Now that we are on the cusp of 2021, how can we expect ADA will perform in the year to come? Since BTC is breaking through its ATH, traders are waiting for that trickle-down effect with altcoins. Remember - BTC’s performance is a key factor that influences the prices of other crypto tokens, as we explained earlier.

While there are over 7,500 altcoins in the cryptomarket, some of them have shown to have great resilience and strength and are in a prime position to bounce back. And, good news - ADA is one of them.

Cardano is in a particularly good position to increase due to several updates:

The hard fork that occurred in December 2020, which introduced a token-locking feature;
Shelley Testnet rollout announcement, which lets members use an improved interface to choose a stake pool;
The official Cardano wallet (Daedalus) is going to have several upgrades to take trending market features and increased demand into account;
ADA will soon be added as a payment method on Shopify e-commerce stores;
Cardano has managed to build itself one of the largest cryptocurrency social media presences on Twitter, with 166,000 followers.

When analysts take into account the increased demand for ADA, the growing dApp industry, Cardano’s latest upgrades, and the skyrocketing price of BTC, they are confident that the price of ADA will increase significantly during 2021.

Cardano Price Prediction for 2022

Now that we’ve seen what experts have in mind for ADA in 2021, let’s take a look at predictions for 2022. Since this is further out, predictions are not as clear-cut, and this is where experts start to differ in opinion. Some analysts foresee wild growth that builds off of 2021’s projected increases, while others anticipate a crash in the Summer of 2022. We’ve chosen a realistic price prediction that doesn’t fall to one extreme or the other.

Cardano Price Prediction - 2030 and Beyond

This is so far in the future - in the world of cryptocurrency, 10 years may as well be a century. However, we have something rather bold to say: in 2030, Cardano will either be totally irrelevant and trading at mere pennies, or it will be dominating the dApp platform market - in the latter case, it is entirely plausible that ADA would be trading at $10+.

What are we predicting? We think ADA has what it takes to stay relevant for the next decade. It is one of the leading dApp platforms - as the demand increases for dApp blockchain platforms, Cardano will only grow more and more successful; that is, as long as the developers still release innovative updates to stay ahead of the competition.

Technical Analysis of ADA Price

If you are considering adding ADA to your portfolio, it’s important to understand how to create and read technical analyses. We’ll give you a sample technical analysis of ADA and then show you how to make one of your own.

On December 28th, 2020, Cardano experienced a “green day,” in which it rose by 11% over the course of market hours. The upwards move pushed ADA’s market cap to $5.379323 billion. In the past 24 hours, Cardano traded in a range from $0.1529 to $0.1737. Over the past week, Cardano gained 13% - however, it is still down by 87.21% from January 4th, 2018’s ATH of $1.35.

Despite Cardano’s significant pump, it seems as if the token still has additional room to climb. After the breakout of the 12-hour chart’s ascending triangle pattern, bulls have had full control. ADA has a long-term aim of $0.25, as many indicators show that it faces little resistance.

So, how do you go about making a technical analysis of your own? We recommend signing up for a demo account at Libertex - you can try out various indicators and test strategies without risking any of your own money.

When creating a technical analysis, there are a few factors to keep in mind:

Trends. The three kinds of trends are uptrends (moving upwards), downtrends (moving downwards), and sideways (moving in a horizontal channel). If ADA is in an uptrend, or “bullish”, it is experiencing higher highs and lows. If it is in a downtrend or “bearish”, it is experiencing lower highs and lower lows.
Resistance vs. support. Price movements bounce up and down, rather than moving in a linear fashion. During an uptrend, ADA’s price experiences resistance, which is where pauses or rebound occurs. Similarly, when ADA is in a downtrend, it will experience support from a concentration of buyers.
Analysis tools. There are a huge number of analysis tools you can use to investigate the price of ADA. The most commonly used ones include MACD, Bollinger Bands, Simple Moving Average, and OHLC charts. You can use these tools on Libertex, and you can also check out blog posts explaining how to use each tool.

ADA Price Predictions From Experts

Before we wrap up, we wanted to present you with some ADA price predictions from experts.

Charles Hoskinson, the founder of Cardano, has stated that Cardano very well could rise to $5 during the next several years, so long as the platform manages to complete its development goals.
Coinswitch predicts that Cardano will reach $2.88 - $3 in 2025.
DigitalCoinPrice has a more modest ADA forecast - according to their analysis, Cardano could reach $0.66 in 2025 - and it wouldn’t hit the $1 mark until 2027.
CoinPriceForecast forecasts that Cardano will finish up 2022 at $0.37 and will grow to $0.79 by 2027.

What to Do With Cardano - Trade or Invest?

As you can see, even crypto experts are not in agreement about ADA’s long-term performance. Thus, even though hodling ADA could bring significant profits, it could also end badly. So, you could be better off trading ADA as CFD - this would allow you to earn profit in a smaller period of time. And, what’s more, you can try this out totally free of risk with a Libertex demo account.

When you sign up for a demo account, you’ll be able to practice your ADA trading strategies with 50,000 EUR. Try out the platform that has won numerous awards and has a user base of over 700,000 people!

Why to trade with Libertex?

access to a demo account free of charge
technical assistance to the operator 5 days a week, from 8 a.m. till 8 p.m. (Central European Standard Time)
leverage of up to 1:600 for professional Ñlients
operate on a platform for any device: Libertex and Metatrader

FAQ

What Will Cardano Be Worth in 2021?

According to our analysis, and those from experts, Cardano will likely enter 2021 at $0.20 - $0.28 and close at $0.29 - $0.36.

Is Cardano Worth Investing in 2021?

Yes, Cardano is worth investing in during 2021 - most experts are in agreement that Cardano is going to experience growth over the next few years.

Does Cardano Have a Future?

Cardano has a future, but the degree of its success is dependent on whether they can complete announced development projects.

How Much Will Cardano Be Worth in 5 Years?

There are plenty of varying opinions about this question; experts predict that Cardano could be worth anywhere from $0.50 to $5 in 2025.

Will the Price of Cardano Go Up?

Yes, Cardano shows several indications of continuing to rise over the coming years.

Can Cardano Hit $10?

This is possible, but it likely wouldn’t happen for at least 10 years. Even the most optimistic ADA predictions don’t forecast the coin reaching past $3 by 2025.

Will Cardano Reach $100?

In order for Cardano to reach $100, we would need to experience significant gains and a phenomenal adoption rate of the platform. This really depends on the publicity that Cardano receives, and whether the developers are able to form high-profile partnerships. According to current predictions, a price of $100 would not occur for decades.

Is Cardano a Good buy?

According to experts, Cardano is a good buy and should be included in your portfolio. Remember, you can use Libertex to practice your trading strategies risk-free.