Cardano Price Surges; Will ADA Sustain the Price Rise?
This week investors noticed an inflow of money in ADA. Cardano aims to become a third-generation decentralized blockchain platform after Bitcoin and Ethereum. It allows the user to create smart contracts on the platform based on a sustainable ecosystem.
Other smart contract blockchains face issues with scalability, and this challenge can be solved by using Cardano as a Smart contract platform.
Charles Hoskinson is the founder of Ethereum, who played a vital role in creating Cardano in 2015. Later it was publicly released in 2017. It has gone through various stages from inception, such as Bryon, Shelly, and Goguen. The last version is Voltaire which focuses more on scaling and on-chain governance.
Interestingly, all the updates are named after English poets, and they follow a peer-review approach to development. It means if developers propose any changes in the protocol, they will be reviewed by academics before implementation.
Ethereum uses Proof of Work consensus while Cardano uses Proof of Stake consensus, which is an eco-friendly and sustainable idea. However, the Ethereum 2.0 upgrade will switch to a Proof of Stake consensus on the Ethereum blockchain.
Proof of Stake consensus brings power to the coin holders; thus, it makes the network more secure and convenient for use. Besides that, it also reduces power consumption and carbon footprint.
It is one of the reasons why many investors prefer Cardano over other blockchains because it is more eco-friendly and secure for long-term use.
At the time of writing this post, ADA was trading around $0.67, continuing the upside movement. It has broken the Support Level of $0.59, and it will face immediate resistance of around $0.76.
MACD, RSI, and many other major technical indicators are bullish on the daily chart. Today’s candle has broken the upper half of the Bollinger Bands. We think it is the ideal time to invest for the short term.
Should you invest for the long term? We think it is not the ideal time for long-term investment because the ADA price is under the bear’s grip, and it will take a bullish reversal only after it crosses the $1 level. For a more detailed analysis, explore our ADA price prediction.
On the weekly chart, MACD and RSI are neutral; one weekly green candle is formed after eight consecutive red candles. We do not think it is a good time to start investing because it may form another red candle next week.
It is time to observe the Cardano price movements. However, you can invest with a target price and strict stop loss for the short term.
