Cardano Price Up By 11% – Time To Buy ADA?
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Several crypto protocols seek to solve the scalability issues prevalent in the blockchain space. One of the most popular protocols is the Cardano network.
With the blockchain platform rolling out its smart contracts upgrades and seeing growing adoption, several investors are looking to buy ADA for a bargain in the event of a market recovery.
However, this should not inform your decision but the project’s ability to deliver on its promises. This article will explore the value proposition of the Cardano network and if there is a growth potential for your investment if you buy ADA.
Cardano: Popular ‘Ethereum Killer’
The first thing you should know about Cardano is that it has ties with the Ethereum network in the person of founder Charles Hoskinson. During the early days of the popular decentralized applications (dapps) platform, Hoskinson served as one of the early co-founders alongside Vitalik Buterin, Gavin Wood, and several others.
Leaving Ethereum, Hoskinson set out to build a more generic, scalable, and inclusive crypto ecosystem. This gave birth to the Cardano network. Developed by Hong Kong-based Input Output Hong Kong (IOHK) software firm and commercialized by Emurgo, Cardano prides itself as the third generation of blockchain technology.
Not adopting Ethereum’s more libertarian approach to software development, Cardano is conservative in its development. It has set out to build a fast, scalable, and provably secure blockchain network that is future-proof.
It is the only peer-reviewed and scientifically researched blockchain network in the evolving ecosystem.
The Cardano has been consistent in following its roadmap to full launch and has released upgrades to its network. It uses a proof-of-stake (PoS) consensus algorithm called Ouroboros.
According to the development team, this protocol enables the delegation of a particular validator based on epochs or timeframes.
This way, the Cardano network is energy-efficient, and transactions are also cheaper than the Ethereum network.
Ouroboros is looking to replace blockchain, as we know it, by enabling an infinite number of dapps on its platform. Aside from this, it will be permissionless and sustainable.
ADA is the protocol’s native token, and it is also used in securing the Cardano network.
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ADA: Building Momentum Despite Market Downtrend
The Cardano protocol is an exciting project, and many experts have pointed out its potential to change the way we interact with blockchain technology.
This has largely been due to the Cardano team’s methodical approach in fleshing out their idea. This systematic approach has built it a staying power, and many investors believe that it may be worthwhile to buy ADA despite trading at a bargain.
Price-wise, ADA trades at $1.1618, up 11.23% from its previous trade yesterday. This rally is significant given that Cardano is working on its Alonzo hard fork, which will enable smart contracts execution on its network.
Meanwhile, this is not the best price action ADA has seen this year. Kick-starting 2021 at $0.1753, ADA surged more than 5,000%, rising to a record $2.3091 on May 16. However, it dipped to $1.324 a week later before rallying to $1.8405 on June 3.
Even though ADA price action has been checkered at best, the digital token is still one of the most promising cryptocurrencies in the burgeoning crypto space.
ADA Technical And Fundamental Analysis
On the technical side, ADA is slowly recovering from the months-long volatility which has crippled the crypto market.
It trades below the 20-day moving average (MA) support price of $1.2936, with the potential to hit a bull run in the coming days.
Its relative strength index (RSI) is at 41.01, meaning it is above the oversold region.
On the fundamental side, Cardano is ramping up efforts in rolling out its upgrades. So far, it has rolled out the Alonzo Blue hard fork, which brought smart contracts to the network.
The present Alonzo White node will enable the minting of non-fungible tokens (NFTs) and decentralized finance (DeFi) in the Cardano platform.
Following this, crypto exchange Bitrue has announced that it will support native tokens on the Cardano ecosystem. This will see it deploy its Occam.fi (OCC) on the Cardano network.
Market analysts believe that ADA is going to rise in the future. According to Wallet Investor, 1 ADA will trade for $3 while it will spike up to $10.240 in the next five years.
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