Cardano Price Forecast as 7,000,000 Native Tokens Launch on the Blockchain – ADA to $1 Soon?

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ADA, the native token of the Cardano blockchain, was trading about 1.5% higher on Wednesday, according to TradingView. Cardano’s native token trades higher with a broader rally in crypto markets, which comes despite higher Temporary Experience for Comprehensive Macro Trade ahead of upcoming risk events. The cryptocurrency was last changing hands in the mid-$0.31 range, meaning it now trades back in the green on the week and is up a little over 6% from new yearly lows hit last week under $0.30.

ADA/USD sees slight gains. Source: TradingView

Cardano Native Token Reaches 7 Million Mark

In terms of the underlying fundamentals of the Cardano blockchain, the trend remains strong. A few days ago, the number of native tokens staked on the world’s sixth-largest blockchain by market capitalization crossed the 7 million mark for the first time.

The rate at which new tokens are being issued on the Cardano blockchain is impressive. The blockchain just hit 6 million native tokens in September. At the current pace, Cardano should have over 10 million native tokens on its blockchain by mid-2023.

Elsewhere, according to the latest update from Cardano Blockchain Insights from earlier this week, the number of smart contracts deployed on Cardano’s Plutus platform is set to grow by 300% in 2022. 3,791 smart contracts are now deployed on Plutus versus 947 at the start of the year.

According to crypto GitHub development tracker @ProofofGitHub, Cardano ranked as the number one blockchain by daily development activity on November 30, overtaking the likes of Ethereum and Cosmos. Cardano consistently ranks as one of the top cryptocurrencies when it comes to growth and its investors are optimistic that this will translate into the emergence of a strong Cardano DeFi and use-case ecosystem in the years to come.

Cardano Price Forecast – Where to next for ADA?

Despite Cardano’s underlying fundamentals when it comes to blockchain development, Cardano’s native ADA token remains locked in a bearish trend despite a slight gain over the past two days. As a result, the near-term ADA price forecast remains on the downside. At current levels of a mid-$0.31 per coin, ADA continues to trade at a roughly 25% discount to pre-FTX collapse levels of the low $0.40s earlier this month.

ADA/USD technical outlook looks bearish on several fronts. First of all, the cryptocurrency is trading below all its major moving averages, all of which are up and down. Meanwhile, ADA has been locked inside a descending trend channel since mid-August.

ADA/USD is looking bearish on multiple fronts. Source: TradingView

The cryptocurrency attempted to break out of this downtrend earlier this month, but was dismissed as a major uptrend when it offered support in mid-2022. Technically, there is little support until a summer 2020 high of $0.17, which would mark a 45% drop from current levels. In the near term, unless there is a significant uptick in broad crypto sentiment, ADA looks to move back to $0.20. A rally to $1.0 in the near term seems unlikely right now.

ADA/USD is eyeing further downside in the coming months. Source: TradingView

Will Cardano Benefit From Elon Musk’s Twitter Acquisition?

Founder of Cardano charles hawkinson said at an event earlier this month that he thinks Elon Musk Twitter has “every intention” of integrating crypto following the billionaire’s recent acquisition of the social media site. Hoskinson said this could bring 200 million new users into crypto.

The Cardano founder speculated, as have many others, that Musk might choose to integrate Dogecoin in some way, but warned that Dogecoin lacks the technology to support the many users of its blockchain. There is a shortage. He suggested that Dogecoin could be integrated as a sidechain to Cardano to help it scale, but acknowledged that there would be a lot of competition for that role.

Hawkinson noted Binance invests $500 million Musk’s purchase of Twitter means that Binance’s own blockchain, the Binance Smart Chain, is likely to play a bigger role in any future Twitter crypto-based payment system.

This suggests that the immediate benefits of the Musk Twitter acquisition may not be that great for Cardano. But if it boosts crypto adoption, all major projects in the crypto space are winners in the long run.

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