The crypto market is still on an uptrend after a bad performance YTD. Most cryptocurrencies reached their bottom prices back in June 2022. Today, prices have recovered as part of a price correction. Cardano specifically is trying to breach two resistance prices. Can Cardano reach 1 $ soon? Let’s analyze the technical side of things in this Cardano price prediction article.
What is Cardano?
Cardano (ADA) is a blockchain network with claims to be one of the biggest competitors for Ethereum. Because Cardano combines security, decentralization and scalability and is one of the most versatile and, above all, a technically excellent blockchain network on the market. Cardano’s network token is the ADA, which can be used for staking and used to pay fees. Cardano is characterized above all by its scientifically oriented further development of the blockchain. The Cardano Foundation uses scientists to further develop Cardano using evidence-based methods.
What problem does Cardano solve?
Cardano’s big competitor is Ethereum. The Ethereum blockchain is the most dominant blockchain in decentralized applications like DeFi and NFTs. But Ethereum has had bigger problems with low transaction speeds and high gas fees in recent years. Cardano wants to solve Ethereum’s problems with superior technology.
Cardano offers a more efficient blockchain as it uses the Proof-of-Stake consensus mechanism. Furthermore, Cardano is a decentralized network, offers smart contracts and is relatively easy to scale. Cardano thus solves the blockchain trilemma. This “trilemma” was addressed by Ethereum founder Vitalik Buterin and describes the fact that it is extremely difficult to combine the areas of scalability, decentralization, and security in a blockchain.
Cardano Price is nearing 60 cents – What’s Happening?
It is no secret that most cryptocurrencies have crashed by an average of more than 70% since November 2021. Cardano is no different, as its prices crashed around 82% and reached the bottom of around $0.40. However, since that specific price, ADA managed to recover and started its uptrend in tandem with the crypto market.
In figure 1 below, we can clearly see a reflection in prices, showing stronger price actions in mid-July 2022. The uptrend is due to the fact that cryptos were severely oversold, and due to positive fundamental backings. Examples of such positive fundamentals include Blackrock entering the crypto sphere, and Ethereum’s upcoming merge event.
Cardano Price Prediction – Will Cardano reach 1 $ soon?
Before reaching the 1 $ psychological price mark, ADA would need to first reach the price of $0.80. This is a critical price area that ADA needs to break higher. If this happens, we should expect ADA to reach 1$ afterwards. It is important to note that we will most definitely witness occasional price corrections lower as part of profit-taking.
In addition to the market dynamics, everyone is eyeing the Ethereum Merge event and how it’ll go. If things turn out to be negative, the crypto market can still crash, as some analysts believe that Bitcoin should still reach $10,000 in 2022, bringing the entire market with it lower. That’s why it is important to place stop-loss triggers around important price areas.