Cardano and XRP are the only cryptocurrencies mentioned as a part of the US crypto strategic reserve on March 2 that have experienced gains from the announcement. ADA, in particular, saw an impressive bullish reaction on the day, increasing by more than 53% compared to lighter upward price movements for the other four cryptocurrencies.
At the time of writing, ADA has a $0.5531 price value. Meanwhile, some upgrades around the Cardano ecosystem have transformed earlier skepticism into positive market sentiment. Naturally, investors are now wondering where the project is headed and are interested in learning more about ada price prediction in the coming months. Below, we dive deep into Cardano’s fundamentals and price history and take a look at the social sentiment surrounding the asset and its potential price performance. Let’s begin!
A Look At Cardano Fundamentals
The decision to include ADA in the proposed strategic reserve has made a big difference for Cardano. The project is a third-generation blockchain platform created by Charles Hoskinson—one of the co-founders of Ethereum—in 2017. It aims to deliver enhanced scalability, security, and sustainability, which make it quite unique compared to blockchain infrastructures such as Ethereum and Bitcoin.
One notable technological development of Cardano is the implementation of the Ouroboros Proof-of-Stake consensus mechanism, which significantly decreases energy consumption compared to Bitcoin’s Proof-of-Work system. Cardano also stands out through a layered architecture that separates smart contract execution and transaction processing, providing streamlined upgrades and greater flexibility.
Cardano’s Price History
Like many cryptocurrencies, Cardano’s price history has been like a theme park roller coaster, with teetering highs and steep declines. In 2017, the Cardano blockchain and ADA—its native token—emerged in the crypto world at a price of just $0.0024. At first, many greeted the project with skepticism, disregarding its value, but Cardano soon proved everyone wrong.
One of Cardano’s milestones was the Alonzo hard fork in 2021, which unlocked the blockchain’s smart contract capabilities. This technological development, followed by the 2021 crypto bull market, established the perfect foundation for ADA’s meteoric rise. Due to the anticipation and enthusiasm surrounding Cardano’s smart contracts, the price of ADA surged 30 times, and its market cap reached a staggering $94.9 billion, establishing the cryptocurrency as a strong contender in the industry. It was a unique ascent, as during that time, ADA surpassed even market giants such as ETH and BTC in growth rates.
However, as it frequently happens in the crypto space, a correction followed, and after the Alonzo hard fork in September 2021, ADA experienced a downward shift. During the final quarter of 2023, the crypto markets experienced a new wave of confidence, driven by the anticipation of the SEC’s approval of spot bitcoin ETFs. While Cardano didn’t spike to the same magnitude as before, the enthusiasm surrounding cryptocurrencies’ institutional acceptance kept the asset afloat. Fast forward to 2024, ADA experienced strong momentum in early November due to broader crypto market optimism resulting from the election victory of Donald Trump. However, February proved challenging for the crypto market overall, and ADA’s price declined once again from $1.13 in mid-January to $0.60 by the end of February. This correction happened due to market concerns about President Trump’s economic and foreign policies. His announcement of tariffs on China, Canada, and Mexico led to market uncertainty, as such measures could eliminate goods with a lower price from the marketplace, increasing inflationary pressures.
As of March, ADA has achieved an impressive rally this month, weathering challenging periods. According to historical data, the project could be positioned to rewrite its historical performance this month, but as always, nothing is guaranteed in the cryptocurrency landscape, so investors should remain confident but not overly optimistic.
Social Crowd Sentiment Around Cardano Becomes Positive
Cardano was one of the most undervalued blue-chip assets in the cryptocurrency space. Founder Charles Hoskinson, alongside analyst Ali Martinez, acknowledged that this negative sentiment around the asset’s price has hit epic levels, but interestingly, the tides have turned recently with bullish price actions as well as increased relevance within the market. Recent data shows that there are growing positive sentiments around Cardano on social media platforms – to be more specific, there are 3.5 positive comments per one negative remark, which Cardano hasn’t seen since early November.
This exceptional performance is a result of recent speculations of the project’s role in the US government, which have fueled enthusiasm around Cardano. According to these speculations, which were related to the roles of specific blockchains in the pro-crypto government of the US, Cardano would be used as a smart contract network for government services. However, this hasn’t yet been confirmed at the time of writing.
Will Cardano’s Price Performance Also Turn Bullish?
It’s well-known that in the crypto market, the social sentiments around an underlying crypto influence its price performance. A positive sentiment attracts more investors to the ecosystem, fueling demand, and some market participants even rely on hypes to make investment decisions. Market analysts consider that an imminent bullish price action is indeed possible for Cardano, especially considering the recent positive sentiments. A bold for the asset’s price is that it could see a 12x surge after a breakout from a bullish cup-and-handle pattern (a technical indicator resembling a cup with a handle that is considered a bullish signal in the market).
While a bullish scenario isn’t out of the question for Cardano, if negative sentiment arises, the price of the asset could face downward pressure. Solana’s steep decline is a good example to this end, showing how the community disposition can impact the performance of a cryptocurrency. While Solana relinquished its earlier gains during March, it also experienced a 14% correction since the meme coin fallout led to skepticism around the Solana ecosystem. Overall, Cardano is well-positioned for an impressive performance in the coming months due to its solid fundamentals. However, different factors will influence its price trajectory, such as macroeconomic conditions, further developments regarding the strategic reserve, and the approval of ETFs.
The Bottom Line
While the social sentiment surrounding Cardano has hit bullish levels, cryptocurrencies remain high-risk assets, with their future performance hinging on different factors, such as macroeconomic and regulatory developments. Hence, investors should proceed with caution and stay informed on all these factors at play that could further determine the outlook of the project.
