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Cardano Price Lags Behind XRP – Can ADA Reclaim Its Former Glory?

source-logo  cryptoticker.io 18 December 2024 21:27, UTC

Just a few months ago, Cardano (ADA) was competing neck-and-neck with XRP in terms of both market cap and token price. Back then, Cardano’s price ranged from $0.40 to $0.60, while XRP hovered in the same range. But things have changed. With XRP’s meteoric rise, will Cardano be able to match its rival, or has XRP pulled too far ahead?

Cardano Price Today – Where Does ADA Stand?

At the time of writing, Cardano’s price is $1, reflecting a 6.5% drop over the past week. This pullback comes as the broader crypto market faces consolidation.

ADAUSD_2024-12-18_19-01-29.png

ADA/USD 4-hours chart - TradingView

While most major cryptocurrencies have seen price corrections, ADA's stagnation is more concerning, especially given XRP's recent surge to $2.40. For context, XRP and Cardano were once in a close race, both trading around the $0.40 to $0.60 range. Today, however, XRP is soaring, while Cardano seems stuck.

XRPUSD_2024-12-18_19-04-39.png

XRP/USD 4-hours chart - TradingView

This performance gap has raised questions about Cardano’s growth potential. Many wonder if ADA will manage to regain its momentum or continue to lag behind in the broader crypto market.

Why Is Cardano Underperforming Compared to XRP?

There are several reasons why Cardano’s price is lagging behind XRP. Here’s a look at the key factors:

1️⃣ Lack of Big Catalysts:

  • Unlike Ripple, which recently launched its RLUSD stablecoin and gained positive momentum from favorable SEC-related news, Cardano hasn't had any major announcements to spark investor interest.
  • Major partnerships, new launches, or development upgrades typically trigger price rallies, but Cardano has remained relatively quiet in recent weeks.

2️⃣ XRP's Regulatory Advantage:

  • XRP gained significant attention after positive developments in its lawsuit with the SEC, which led to a surge in XRP demand.
  • Cardano, on the other hand, hasn’t faced regulatory scrutiny, but it also hasn’t had any major legal wins to fuel a price surge.

3️⃣ Investor Sentiment:

  • With XRP skyrocketing, many investors are shifting their attention away from Cardano and chasing XRP’s price action.
  • This shift in attention has created an outflow of liquidity from ADA, slowing down its price momentum.

4️⃣ Market Trends and BTC Influence:

  • Bitcoin's price fluctuations often impact the entire crypto market. While XRP has decoupled from BTC’s price swings, Cardano remains more correlated.
  • When Bitcoin’s price stagnates or drops, it tends to pull ADA down with it, limiting its growth potential.

Without a major catalyst, investors may continue to favor XRP over Cardano, at least in the short term.

ADAUSD_2024-12-18_19-02-37.png

ADA versus XRP performance in the past month - TradingView

Cardano Price Prediction – Can ADA Reclaim Its Former Highs?

Despite ADA’s sluggish performance, there’s hope that Cardano's price could recover. Historically, bullish crypto markets tend to benefit altcoins like Cardano, especially once large-cap tokens like XRP and ETH reach their resistance points.

Here’s a breakdown of Cardano's price prediction for the short, medium, and long term:

Short-Term Prediction (Next 30 Days):

  • Target Price: $1.50
  • If the overall market remains bullish, ADA could see a 50% price increase in the short term, aiming for a $1.50 target. This target aligns with a key resistance level, and breaking it could trigger additional momentum.

Medium-Term Prediction (Next 3-6 Months):

  • Target Price: $2.00
  • If the market continues to recover and Bitcoin breaches its $100K resistance, Cardano could rise toward $2.00. Historically, ADA has seen significant gains during altcoin seasons, and if XRP cools down, attention could shift back to ADA.

Long-Term Prediction (6-12 Months):

  • Target Price: $2.80
  • The ultimate goal for ADA is to reclaim its previous high of $2.80. While this target seems far off, it’s achievable if Cardano introduces game-changing upgrades or partnerships. The crypto market tends to move in cycles, and ADA could ride the next big wave.

ADAUSD_2024-12-18_19-07-32.png

ADA/USD 1-week chart - TradingView

For investors, the key levels to watch are $1.50 and $2.00. If ADA can break past these resistance points, it will send a strong signal to the market that Cardano is ready to rally again.

Is Cardano (ADA) Still a Good Investment?

With XRP grabbing all the headlines, many wonder if Cardano is still worth holding. While it’s easy to get distracted by the performance of faster-moving tokens, ADA has a history of strong comebacks.

Here’s why some analysts believe ADA is still a good long-term play:

Technological Foundation: Cardano is one of the most technologically advanced blockchains, built on the Ouroboros Proof-of-Stake (PoS) consensus. It’s designed for scalability, security, and sustainability, unlike many other blockchains.

DeFi & Smart Contracts: While Cardano was slow to integrate smart contracts, its platform is now supporting numerous DeFi projects. These projects could boost ADA's demand as the DeFi market grows.

Altcoin Season Potential: Historically, altcoin seasons drive prices for large-cap tokens like ADA, MATIC, and SOL. If XRP cools down, it’s possible that investors will rotate funds back into Cardano.

On the flip side, critics argue that Cardano's development moves too slowly, and this has allowed competitors like Ethereum, Solana, and Avalanche to get ahead. For Cardano to reclaim its previous glory, it needs faster development and more high-profile partnerships.

XRP vs. Cardano – The Key Differences

While XRP and Cardano are both top-tier crypto projects, they have key differences that set them apart. Here’s a quick comparison:

Feature XRP Cardano (ADA)
Primary Use Payments, remittances Smart contracts, DeFi
Speed 3-5 seconds 20-60 seconds
Scalability High Medium to High
Price (Current) $2.40 $1.00
All-Time High $3.84 (2018) $3.10 (2021)
Utility Payment token DeFi, Smart Contracts

Both projects aim to revolutionize financial systems, but XRP is focused on payments while Cardano targets DeFi and smart contracts. XRP’s recent momentum has given it an edge, but Cardano’s utility-driven approach could bring long-term success.

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