The overall price movement in the cryptocurrency market during 2021 was an extension of the revolution witnessed in the last months of 2020. Since then, Cardano (ADA) has gained strong upward momentum and has managed to steal the show among the altcoin sphere, setting its tone as a true interdisciplinary competitor.
At present, according to Coinmarketcap, ADA is trading at $2.22, with a market capitalization of about $72.90 billion, and it is the fourth largest cryptocurrency by market capitalization.
The project founded by Charles Hoskinson also saw some improvements to the blockchain that boosted trust among the virtual currency during the early months of the year. Most recently, in September, Cardano published an Alonzo hard fork.
Now, after breaking the $2.00 threshold and consolidating its annual gains above this neighborhood, cryptocurrency traders are looking forward to the outlook for the coming year. AI-based forecast models like WalletInvestors put ADA at $4,587 as of press time on an annual basis, while its five-year forecast suggests Cardano could rise to $14.05.
So, what is the price future after the continuous consolidation around $2.00 in 2022?
ADA Technical Analysis 2022
As the year-end period approaches and Bitcoin (BTC) finally crosses $60,000, the latest critical hurdle ahead of all-time highs, ADA is trapped in a kind of limiting range that has not been resolved since the lows. Tested on September 21 at $1.90.
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As the contraction is developing across the board, the 200-period simple moving average (SMA) on the H4 chart is capping gains and capping any further advance of ADA above $2.40.
However, the bulls need to break through this area to allow for the golden cross of the 50-period simple moving average and the 200 SMA, thus consolidating the bullish case. The golden cross in the H4 chart is significant in the cryptocurrency markets, as it is a strong signal that can unleash bullish power that could get stronger. If so, ADA could set the stage for 2022 higher which could take it to test levels around $5.00.
In fact, another forecast model, LongForecast, put the price of ADA in the fourth quarter of 2022 at around $3.24, the average price that Cardano could target in a potential bull run.
Jane Simmons and ADA
But is this an overly optimistic view of the ADA? Ask Gene Simmons, rock legend and bassist Kiss, a well-known ADA investor.
He claimed in February that he had bought ADA coins and recently confirmed in an interview that he still holds them, indicating that his investment has doubled since then. Furthermore, Simmons said he plans to hold his cryptocurrency for at least “a decade.”
