Rising prices are expected to return to the market in 2023.
Cardano has had a difficult year in 2022, since the ADA token has suffered significant losses in the last year, mainly due to the bear market, which lowered the prices of cryptocurrencies.
In 2022, the Cardano price crashed dramatically. due to the bear market, which caused the price of the token to drop substantially. The ADA token has suffered losses as compared to other cryptocurrencies. However, in bear markets, this is reasonably normal for Cardano.
ADA price losses were especially severe in the first half of 2022. By July, the price had dipped to US$0.41. The price was still $1.60 at the start of the year, and it managed to hit an all-time high of over $3, in September 2021.
The price stabilized slightly in the second half of the year. The ADA has dropped from $0.41 in July to $0.26 in recent days. In the current bear market, the price is lower than ever.
Why was the ADA Price Forced to Accept Such Significant Losses?
Cardano and other altcoins are extremely vulnerable to market interaction. In a bull market, the ADA price can often shoot through the roof, and Cardano experiences a positive buzz, which was the most recent situation in the third quarter of 2021. However, in a bear market, these cryptocurrencies lose much more money than Bitcoin.
Additionally, concerns about the Cardano network have been raised repeatedly in recent months. Rumors spread specifically about the network and its CEO, Charles Hoskinson, who denied any problems in future development and highlighted the excellent track record of his network. Furthermore, growing in a bear market is challenging.
Will the ADA Price Get to $1 Soon?
Despite the difficulties in 2022, a positive Cardano prediction for 2023 is not off the topic, as the price rise can be bigger and more powerful in the second year of a bear market. For example, during the previous bear market in 2019, the price of Bitcoin rose from $3,500 to $10,500. As a result, altcoins saw substantial gains in mid-2019.
Something similar could happen in 2023, as almost all cryptocurrencies currently have a very low price, due to the Federal Reserve raising interest rates, which solidifies the US dollar, as well as the backlash from the FTX crash. As a result, Cardano’s prediction for 2023 could be assumed as positive.
In general, a rally is possible if market confidence returns in the coming weeks and prices rise again. The Cardano price should be able to rise again in the next few days. In this case, a 10 to 20% rally seems feasible. So right now, $1 is a long way off.
Developments on the Cardano Blockchain have an extremely large potential to see the price increase sustainably in the medium to long term. Even so, the bear market is not favorable for Cardano currently.
By Audy Castaneda
