The Cardano price has lagged its close peers in the past few weeks. ADA is trading at $2.2163, which is about 28% below its all-time high. The coin has been in this range in the past few weeks, bringing its total market capitalization to more than $70 billion. It has risen by more than 1,426% this year alone.
ADA has lagged its peers
Cardano is a blockchain project that aims to be a user-friendly platform that developers can use to build decentralized apps (DAPPs) and decentralized autonomous organizations (DAOs). It is a third generation platform that aims to address most of the challenges that Bitcoin and Ethereum faces.
Cardano launched the Alonzo hard fork a few weeks ago. This was the most significant step in its ecosystem since it introduced the concept of smart contracts in its platform. As such, developers could easily build DAPPs such as those in the DeFi and Non-Fungible Token (NFT) industry.
In the past few weeks, the Cardano price has underperformed its biggest peers. For example, the Bitcoin price jumped to more than $57,000 on Monday while Ethereum remains comfortably above $3,600.
At the same time, the combined market capitalization of all digital currencies tracked by CoinMarketCap jumped to more than $3.2 trillion today.
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Meanwhile, Cardano has stagnated at the same level in the past few weeks. Its price has remained in the same range of about $2.2163.
This price action is mostly because investors are still watching the rollout of smart contracts and the applications that are being built in the ecosystem.
While some analysts believe that Cardano will be a major player in the industry, others are skeptical. They cite the significant success of Ethereum, which hold a 87% market share in the industry. They also cite the significant competition from other popular projects like Polygon, Solana, and Binance.
Cardano price prediction
The daily chart shows that the Cardano price has been in a tight range in the past few weeks. That has pushed its volume to a significant lower level while the price is oscillating along the 25-day and 50-day moving averages. It is also slightly below the key resistance level at $2.4752, which was the highest level on May 16.
Therefore, at this point, the outlook of the ADA price is neutral. While a bullish breakout is possible, traders should wait for a clear move above $2.4752. At the same time, a crash below $2.0 cannot be ruled out.