The Cardano priceis attempting to bounce back after its dramatic decline in the past few sessions. ADA is trading at $1.2100, which is about 30% above its lowest level on Friday last week. According to CoinMarketCap, Cardano has a market cap of more than $37 billion and is the 6th largest digital currency in the world.
What happened: Cardano has experienced substantial growth in the past few months. It has moved from almost obscurity to become the sixth biggest cryptocurrency in the world. This performance has been mostly because of the overall rally in digital currencies. Indeed, other currencies like BTC, ETH, and XRP have also been on an upward trend. The recent crash was mostly because of this relationship as Bitcoin price fell.
Cardano has also grown because of the strong adoption of the network. This adoption will likely continue now that it has adopted the smart contracts technology that enables it to become a player in NFTs and DeFi. It has also boosted network decentralization with peer-to-peer networking. So, what next for Cardano prices?
Cardano price prediction
In my last article on Cardano price prediction, I wrote that the currency was still in its price discovery mode. Looking at the daily chart, we also see that this discovery is continuing. The chart shows that the currency has formed a big bullish flag pattern that is shown in orange. In technical analysis, this flag is usually a sign that the currency will bounce back. The currency is also being supported by the moving averages.
Therefore, in my view, I predict that the ADA price will bounce back to $1.5573, which is about 27% above the current price and is its all-time high. It is also along the upper side of the flag. For this to happen, the currency will need to overcome the important resistance at $1.3450.