Cardano’s Constant Declines Worries Investors; Will ADA Rise?
Cardano and its new-age potential to revolutionize the blockchain ecosystem despite the prices hitting historical lows, the growth of decentralized applications and wallets holding ADA has been exceptional. Cardano still holds the sixth position with a market capitalization of $19,586,384,613; ADA remains the only tough competitor to dissuade the market leader.
There are currently more than 4 million native assets on Cardano, mostly NFTs and some belonging to Cardano’s decentralized. According to DeFi Llama, Cardano has ten defined protocols, with over $200 million in total value locked. Well, several browser extension wallets are used to interact with Cardano.
There are more than 3.3 million unique ADA wallets, making it one of the most adopted cryptocurrencies in the crypto world. According to Github, Cardano had the most development compared to any other crypto project in 2021.
Cardano’s upcoming scaling solution dubbed Hydra will enable staking pools to process 1000 transactions per second. With over 3000 staking pools, this would make it possible for Cardano to process over 3 million transactions per second.
ADA’s price is substantially below as it is highly correlated to Bitcoin, which has been declining since November 2021. Cardano has been on the decline since it launched the smart contracts feature.
Expectations from the smart contracts were quite high amongst holders, but as weeks went by, it couldn’t host dApps, and this disappointment forced weak hands to sell. Read more about future possible price projections along with in-depth ADA price prediction.
Cardano’s declining price from $3 to $0.50 was a huge blow to its enthusiasts, but the entire build-up of value was focused on the proposed idea of its huge hit on its dApps ecosystem. Cardano found some support from its pre-enthusiastic level of $0.75, but the selling sentiments on BTC forced the price to decline to further lows of $0.4.
But ADA managed to gain some buying support from the similar breakout level of January 2021. Looking at the RSI trend during the same time, we can witness a decline from overbought levels of 75 to below 30.
Transaction volumes have also declined to new lows compared to the beginning of January 2021. The subsequent rise of Cardano will result from the development of its ecosystem and its success. The regression trend shows a break in the negative trend as ADA hit $0.6822, marking a significant gain in four weeks.
The 100 DMA curve carries a substantial sentiment at the present price trend, and a breach of this level will be the first indication of strengthened price action. Immediate resistance for Cardano would be $0.77 and a strong resistance near $1.6 levels.
