The Cardano price is loitering near its all-time high as altcoins bounce back. ADA is trading at $1.7690, which is slightly below its all-time high of $1.8265. Its total market capitalization has surged to more than $56.4 billion, according to data compiled by CoinMarketCap. It is the 6th-biggest digital currency in the world after Bitcoin, Ether, Binance Coin, Dogecoin, and Tether.
Cardano vs Bitcoin and Ethereum
The background of Cardano
Cardano is a blockchain project that was created by Charles Hoskinson. The platform was developed by Input-Output, an organization he runs. Like other large platforms, its goal is to help developers build decentralized applications that solve real-world problems in sectors like education, government, and health. It describes itself as:
“Cardano aims to achieve the scalability, interoperability, and sustainability needed for real-world applications. Cardano is designed to be the platform of choice for the large-scale, mission-critical DApps that will underpin the economy of the future.”
Cardano uses a proof-of-stake consensus method and recently, it launched a smart contract technology through its Goguen phase of development. This means that developers can now build apps like those in the Decentralized Finance (DeFI) industry. ADA is the native currency for the ecosystem.
Recently, Input-Output reached a deal to decentralize the Ethiopian education sector. If it works, the model will likely be adopted by other countries.
The Cardano price has been in a major rally in the past 12 months. It has surged by more than 3,500%, becoming one of the best-performing currencies. This year alone, ADA price has jumped by more than 900%.
There are several reasons for this price action. First, fear of missing out has pushed more people to invest in the currency. Second, it has jumped as part of the overall cryptocurrency rally. Third, it has risen because of the overall low-interest-rate environment.
Indeed, this is why today is an important day for Cardano and other cryptocurrencies. The US will publish the closely watched consumer price index (CPI) data. If they are stronger than expected, it means that the Fed could start preparing for tightening. This could lead to a sharp decline in Cardano price. On the flip side, if the CPI comes in line or below estimates like the employment numbers did on Friday, it could give the Fed more room.
Cardano price prediction
On the daily chart, we see that the ADA price has surged close to its all-time high. This was in line with my last Cardano price prediction. It also managed to move above the important resistance at $1.4850, where it had found substantial resistance. The currency is still being supported by the 25-day and 15-day exponential moving averages. It has also moved above the bullish flag pattern it had formed a while back.
Therefore, in my view, I suspect that the price will keep rising as bulls target the next resistance at $2, which is about 15% above the current level.