Cardano was the first blockchain in the top 10 cryptocurrencies to utilize the power of proof of stake. While the principles and novel idea of implying proof of stake have differed in the past, the outlook for the token has remained under the Ouroboros protocol. The claimed energy efficiency isn’t the best in the market but was 4 times lesser than that of Bitcoin. While the validity of the claim in 2022 cannot be ascertained, both these tokens have witnessed major ups and downs.
ADA now ranks at the 9th spot with a market capitalization of 10.7 billion and 77% circulating supply of its token volume. The prospects for ADA in the current scenario where ETH has shifted to POS validation have faced steep challenges, but the decline of SOL should bring some hope for ADA enthusiasts.
Cardano (ADA) Price Analysis
ADA is now trading in a narrow consolidation zone very close to the support level created from the bounce back on the 20th of November. As key supports were already breached, the strength of this short-term support cannot face the might of full decline. Cardano has retracted back to the levels before the January 2021 breakout.
Cardano has maintained a steady decline even while others were consolidating for a positive breakout. The month-on-month decline is more clear from long-duration charts. Only March 2022 and July 2022 witnessed positive endings, while the token seems to be shying away from the 100 EMA curve since April 2022. Based on our ADA coin price prediction, the current outlook seems quite dim as RSI is trading close to 35, MACD is close to creating a bearish crossover, and transaction volumes have returned to earlier levels.
The outlook for a positive breakout is quite impossible to predict from either the Cardano price action or the token movements, but it’s obvious that below the $0.03 mark, the token is headed to pre-2021 levels. It could be a disastrous outcome or bring buying rallies back to ADA.