- Cardano price has made a steady recovery recently.
- Whales have been accumulating the coin.
Cardano price rose sharply as investors react to the ongoing ecosystem development and the overall uptick of cryptocurrency and stock prices. ADA rose to a high of $0.9045, which is the highest it has been since April 23rd. It has risen by more than 20% from its lowest level in April.
Ecosystem growth
Cardano has had a difficult performance in the past few months. After peaking at over $3 in 2021, the coin has erased over 70% of its total value. As I wrote last week, this price action is mostly because of the weak ecosystem growth compared to other networks.
In my last week’s ADA price prediction, I noted that the network has had a significantly slower adoption than other networks. Precisely, I compared it with Cronos, which has grown its total value locked (TVL) to over $3 billion in less than six months.
Cardano, on the other hand, has a TVL of less than $300 million despite the fact that it was established in 2015. It only unveiled its smart contracts features in August last year.
Cardano’s developers have cited the fact that there are over 900 projects being developed in Cardano’s ecosystem. While that is an encouraging fact, there are concerns about whether these applications will be successful.
Still, there are some catalysts for the Cardano price. For one, it is still one of the most popular cryptocurrencies among investors. Recently, whales have accumulated more than 196 million coins. This is usually a bullish sign. Further, the number of hodlers who have held the coin for more than one year has risen by 6.20%. Those holding it for between 1 and 12 months have increased by over 10%.
Therefore, while Cardano is highly overvalued, there is a likelihood that it will bounce back in line with other altcoins.
Learn how to buy Cardano.
Cardano price prediction
The Cardano price has been in a strong bullish trend in the past few days even after the Fed decided to hike interest rates. It managed to move above the 25 and 50-day moving averages while the Relative Strength Index (RSI) and the MACD are pointing upwards.
Therefore, after having a disappointing performance in April, there is a likelihood that the coin will have a recovery in May. If this happens, the next potential target will be at $1.
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