Cardano started a healthy uptrend in the past month of July 2022. After the formation of that uptrend that drove the entire cryptocurrency market higher, prices crashed heavily in the past week. The average loss in the crypto market was around 12% in the past week. Cardano’s loss was around 18%, bringing ADA prices to a buy zone. Is Cardano a good buy currently? Or will Cardano price crash further? Let’s analyze in this Cardano price prediction article.
What is Cardano?
Cardano (ADA) is a blockchain network that positions itself as one of Ethereum’s main rivals. Because Cardano is one of the most adaptable and, more importantly, a technically proficient blockchain network on the market, combining security, decentralization, and scalability. The ADA, the network currency for Cardano, may be used for fee payment and staking. Cardano is distinguished primarily by its commitment to the scientific advancement of the blockchain. The Cardano Foundation utilizes scientists and research-based techniques to advance Cardano.
Why is Cardano a Good Crypto Project?
The main rival of Cardano is Ethereum. The most prevalent blockchain in decentralized applications like DeFi and NFTs is the Ethereum blockchain. However, Ethereum’s recent issues with slow transaction times and high gas costs have been more serious. Cardano seeks to use cutting-edge technology to address Ethereum’s issues.
The project employs the Proof-of-Stake consensus algorithm, which provides a blockchain that is more effective. Cardano also has smart contracts, a decentralized network, and is very simple to scale. Thus, the blockchain trilemma is resolved by Cardano. This “trilemma” refers to the fact that it is very challenging to integrate the domains of scalability, decentralization, and security in a blockchain and was addressed by Ethereum founder Vitalik Buterin.
Cardano Price Crash – Why is ADA Down?
In the past week, the entire cryptocurrency market crashed by an average of 12%. Bitcoin, the biggest cryptocurrency by market cap lost around 11%, while Ethereum’s loss was harsher, around 16%. In fact, the cryptocurrencies that gained significantly in the past week are the ones that lost the most in the week after.
Cardano was one of those cryptos that started to grow from the low of $0.40 and reached a high of $0.59, gaining around 47%. Today, prices adjusted back lower in tandem with the entire cryptocurrency market. Now the common question is, why did the cryptocurrency market adjust lower? Well, there are no clear answers to this, rather than a price adjustment. In another article, we spoke about some reasons why the market adjusted lower. Today, prices reached the support price of $0.45 and are starting to retrace higher.
Cardano Price Prediction – Will Cardano go up again?
It is obvious that Cardano is already retracing higher. After hitting the $0.45 support price, prices retraced to the current price of $0.47. Now the follow-up question comes: where will Cardano price reach? Well, we previously had a consolidation between the prices of $0.45 and $0.50. We expect that prices should go back up and reach at least the area of the upper consolidation line of $0.50. From there, it’ll depend on the general sentiment in the crypto market.
If the cryptocurrency market bounces back higher, ADA should break this $0.50 price upwards. For now, the hype around Ethereum’s merge seems to have cooled down, and we don’t expect any big jumps in prices higher. It is advisable to day trade ADA instead of buying and holding, as the short-term price action makes it better to enter short-term trades between clear and delimited support and resistance areas.