Cardano is a popular cryptocurrency because it comes with the next-generation evolution of the Ethereum network. It is a more flexible, sustainable, and scalable platform running on Proof of Stake consensus, which allows developers to create a wide range of decentralized applications, games, tokens, and more.
It was launched in 2017 by Charles Hoskinson, who aimed to create a third generation of blockchain projects that solves the problem of Bitcoin and Ethereum.
Cardano is used as an asset; it can also be used to send and receive payments, staking, and pay transaction fees on the network. It is an eco-friendly, sustainable blockchain platform that runs on a mechanism called Ouroboros, which is energy efficient, unlike Bitcoin.
The mechanism is run by invested participants called validators. Instead of solving complex mathematical problems as in the Proof of Work consensus, it secures the network and verifies transactions by staking a certain amount of ADA on the network.
Cardano is one of the leading cryptocurrencies in the industry, which will provide a handsome return in the long run. Read our Cardano predictions to make the best investment decision and safeguard your money.
At the time of writing this post, ADA was trading around $0.39, which has faced resistance around the previous support of $0.42. Though the candles are forming in the upper BB, we think it is not the right time to invest for the short term until it breaks the resistance of $0.42 and consolidates within the previous range.
MACD and RSI are neutral at this time; Cardano may break the level of $0.35, which could be a support in the next few weeks. Thus, you should not invest until it consolidates or takes strong support.
On the weekly chart, Cardano has been forming lower lows. After a bullish engulfing candle in the previous week, it is forming a red hammer candle, which suggests strong bearishness, and it may form another lower low in the next two weeks.
Indeed, you could accumulate some coins for the long term, but you might get ADA at a lower level in the next few years, so you must save some amount for accumulating ADA later to average the price in the long term.