Cardano Price Down By 3% – Time To Buy ADA?
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The Cardano network is an exciting crypto project that continues to grow till date. Looking to make its blockchain scalable, secure, and interoperable, many investors want to buy ADA, given its immense growth potential.
With decentralized finance (DeFi) growth, questions have arisen around Ethereum’s efficiency in handling bulk transactions. Rival blockchain platforms like Cardano look to answer these questions with their provably sophisticated solutions.
In this article, we will explore what ADA is all about and if this dip is a great time to buy ADA.
Cardano: Popular ‘Ethereum Killer’
Bitcoin and Ethereum served as the first and second generations of blockchain technology.
Cardano bills itself as the third and more advanced generation of the distributed computing evolution.
Cardano is a decentralized proof-of-stake (PoS) blockchain platform that addresses the challenges of large-cap assets like Bitcoin and Ethereum.
Dubbing its PoS consensus algorithm Ouroboros, Cardano aims to develop a blockchain platform that is scalable, interoperable, and more sustainable than proof-of-work (PoW) consensus protocols.
Cardano is also unique in its approach to creating a blockchain solution. Abandoning Ethereum’s ‘break it till we find what works’ style, Cardano is more methodical and is a peer-reviewed blockchain platform. Its scientific approach has endeared the crypto protocol to many investors.
The Cardano network is headed by the former co-founder of the Ethereum network Charles Hoskinson. Launched through an initial coin offering (ICO) in 2016, the Cardano network is developed by Hong Kong-based software firm Input Output Hong Kong (IOHK).
Blockchain company Emurgo is also a strategic partner and handles the commercialization of the project. It creates, funds, and incubates commercial opportunities while also helping institutions integrate into the Cardano network.
The unique appeal of Cardano as a decentralized applications (dapps) platform has seen its native token ADA gain global prominence. The digital token, used in payment settlement and governance, has been one of the best-performing cryptocurrencies in 2021.
Cardano blockchain is currently under development as the protocol is currently in its Alonzo phase according to its roadmap, but despite this, it is one of the top ten most valuable cryptocurrencies in the world.
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ADA: Readying For A Rally?
The crypto market has been volatile, and ADA has slumped due to market pressure. However, the digital token occupies the 5th position on the global crypto chart and has over $41 billion in market cap. Its 24-hour trading volume is also up 21.19% showing that crypto investors want to buy ADA.
Meanwhile, its current price peg of $1.28 shows that it trades 3.86% down from its previous day high. This slump is likely a launchpad for a major rally as the crypto market prepares to enter a new recovery phase.
Despite what many critics may call a bearish trend, ADA has seen exponential growth this year. Entering the year at a low value of $0.1753, the cryptocurrency surged to a record $2.3091 on May 16 before the May crypto market crash.
With the general downturn of the market, it fell a week later to trade at $1.3254.
Reflecting the broader market sentiment, ADA has experienced wild price swings in the last few months.
ADA Technical And Fundamental Analysis
On the trading chart, the digital asset is trading below the 20-day moving average (MA) support price of $1.3576, pointing to a bear market. Its relative strength index (RSI) currently stands at 41.59, meaning it is trading above the oversold margin and below the overbought level.
Market analysts believe that ADA is set for a major rebound by the end of this year. According to Wallet Investor, the digital asset will end the year at $3.186, while its five-year forecast puts it at $10.457.
This is evident as more investors are gradually increasing their stake in the Cardano network. According to a recent report by social trading platform eToro, Cardano’s ADA is the most held cryptocurrency on its brokerage platform. The small-cap digital surpassed
Bitcoin and saw a 51% increase in the second quarter of the year. Also, top digital asset manager Grayscale Holdings recently added support for ADA on its Digital Large Cap Fund.
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