Cardano Is Standing at a Strong Support Level

Along with his former colleague, Charles Hoskinson started the Cardano project in 2015. It uses proof of stake consensus known as Ouroboros. On the other hand, Ethereum relies on proof of work consensus. Indeed Cardano is more eco-friendly and sustainable, while Ethereum is more energy-intensive. Developers divided the project into five stages: foundation, decentralization, smart contracts, scalability, and governance.

In 2022, the project is currently in phase three, which added and developed smart contract functionality in September 2021. In short, smart contracts is the heart of any decentralized applications known as dApps. Still, developers are working on the limitations of smart contracts on the Cardano network. The world’s largest cryptocurrency, Ethereum, handles 30 transactions per second, while Cardano clocks 257 transactions per second, and it makes the platform faster than any other platform in the crypto market.

The fourth phrase solves the problems with implementing Hydra, an upgraded consensus protocol that enables side chains to add scalability. In the future, it has the potential to support 1 million TPS. Indeed, the increased demand for Cardano blockchain leads to increased demand for ADA tokens which will raise the token price. On the other hand, you can start your stake pool to verify the transactions and earn rewards. Cardano is a good asset for long-term investment. However, should you invest in this coin in 2022? Let’s analyze the price chart.

Cardano Price ChartAt the time of writing this technical analysis, the price of ADA is around $1.02, which forms a significant support level on the daily chart. It was consolidating at this support level from February to July last year, and that is why we can consider it as a strong support level. If ADA takes a bullish momentum, then $1.45 can be a resistance level, but we think Cardano has the potential to cross the level and reach a new ATH.

On the daily chart, MACD is bearish, RSI is stable around 39, but candlesticks are in the lower half of the Bollinger Band, so the combination reflects a bearish signal. No one can predict how long it will consolidate at this level, but we think ADA will not break this support level.

Based on our Cardano price forecast, It is not the right time to invest for short-term investors. Traders should wait for a bullish signal before investing for the short term. Otherwise, you will not get the profit you want. The consolidation period may continue till the middle of this year, so keep a closer eye on the price.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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