The cryptocurrency’s price was down and out on Christmas Eve, but after the market opened back up to a modest $0.058 per coin in the new year, Cardano (ADA) finally broke through resistance levels from that day. Could this be an indication of things yet to come for ADA?
Cardano (ADA) is struggling to breach a powerful resistance at the moment. There was a Christmas crash that has been ongoing for a few days now. Read more in detail here: why did cardano crash today.
The new year has only just begun, but the crypto business is already buzzing with activity. Some currencies have already achieved new all-time highs, while others have had significant declines. Others are either beginning a fresh rally or oscillating between two levels, unable to breach any of them.
Cardano (ADA) is one of the latter currencies, with a price nearly half that of its all-time high, which it hit just a few months ago. After the so-called Christmas collapse, the coin became imprisoned, but given how exciting ins 2021 has been, it’s interesting looking back over the last year to see what brought it to where it is today.
A Year in Review for Cardano in 2021
Cardano’s price was at its lowest point a year ago, in January 2021, and it will be for the next 12 months. It began the year at a low price of $0.175, and as soon as 2021 began, its price skyrocketed.
By the 6th of January, the coin had doubled in value in less than a week, reaching $0.33. However, it ran into strong opposition there, preventing it from leaping higher at the moment, but the currency kept pushing throughout January, and it paid off as soon as February began.
Cardano’s price surged all the way up to its next significant barrier at $1 in the early days of February 2021. Technically, it did not achieve this level right immediately, as its price came to a halt at $0.92, after which it saw a little pullback to $0.85. This backing, however, let it to rise even higher, and by the end of the month, ADA had almost quadrupled in price, reaching $1.32.
Its next significant target was $1.5, which it tried to attain numerous times in March and April but was repeatedly refused, until it ultimately succeeded on April 15th. Unfortunately, it was rejected once again, and the price sank below $1.1, from where it began a new climb in early May.
The currency performed much better this time, reaching a new all-time high of $2.3 on May 16th. However, this was also about the time when Elon Musk declared that Tesla would no longer accept Bitcoin payments owing to the coin’s environmental impact, which was followed by a market-wide price drop in which most currencies lost 50% of their value.
Cardano experienced a worse loss than others, falling from $2.3 to $1.3. It then spent the remainder of May bouncing between a support at $1.3 and a resistance at $1.7, never breaking through. Then, in early June, it seemed to lose its momentum, and as bulls exited the market, its price began to spiral downward, eventually reaching a support level of $1.
Cardano’s decline came to an end around July 20th, only to be replaced with a completely new rise. This rise was spurred in part by market performance and in part by high expectations for Cardano’s smart contracts to arrive.
The Shelley Era is coming to a close.
Those acquainted with Cardano know that the project’s plan expects five stages of development, and Cardano was nearing the end of phase two at the time. The end of the so-called Shelley Era meant that the project could finally publish smart contracts, allowing the creation of dApps, DeFi protocols, NFTs, metaverse projects, the introduction of new cryptos, and more. In essence, it enabled Cardano to become a development platform similar to Ethereum, but better.
There was enough of enthusiasm to go around since this was something that the ADA community had been waiting for for years. The euphoria around the end of the second Era drove Cardano’s price up quickly. Cardano’s price soared from little over $1 to $3 per coin between July 20th and September 3rd.
However, when the smart contract launch date approached in early October, the market corrected once again, this time to a new high support of $2. This level of support held until mid-November, when a second significant cryptocurrency price drop occurred. If it hadn’t been for this market-wide event, the ADA price would have likely stayed over $2, but the incident pushed it to plummet down to a new low of $1.25.
Since December 10th, 2021, this level has become Cardano’s new bottom. ADA tried to surge many times after achieving it, but was halted by a resistance at $1.35. The barrier was ultimately shattered a few days before Christmas, on December 22nd, when ADA surged through it, reclaiming $1.5 and even reaching $1.58.
This was the time of the so-called Christmas collapse, which was yet another market-wide disaster. Cardano has lost value again again as a result of a worldwide negative wave that has pushed it from $1.58 to $1.3.
In the year 2022, Cardano will be caught between two levels.
Cardano then spent the final few days of 2021 and the first five days of 2022 bouncing between this support level and a resistance at $1.38, which has kept it from rising until now. The price of ADA is $1.34 at the time of writing, up 0.09 percent in the previous 24 hours. However, it’s worth mentioning that the coins are still pretty static, and there isn’t much activity these days, owing to the holiday season.
Cardano’s currency, on the other hand, is expected to witness more activity in the near future, since the project’s blockchain has undergone enormous amounts of growth in recent months, launching new projects and providing ADA new use cases, resulting in increased demand.
Visit our Investing in Cardano guide to learn more about this coin.
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Cardano (ADA) has been struggling to breach a powerful resistance after the Christmas crash. The price of Cardano is now trading at $0.076, which is still below the previous low of $0.085. Reference: will cardano crash?.
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