Cardano Price Up By 17.91% – Time To Buy ADA?

The Cardano network is an exciting crypto protocol that seeks to herald the next generation of blockchain technology. Currently working on deploying smart contracts on its blockchain, several investors have been pushing to buy ADA.

This week has been phenomenal for the Cardano blockchain, with its ADA token making repeated rallies even as the broader crypto market recovers.

Cardano: Third Generation Blockchain Protocol

The duo of Bitcoin and Ethereum principally dominated the crypto market before the advent of Cardano. However, Cardano’s value proposition has several investors excited.

One thing that separates Cardano from the herd of cryptocurrencies in the nascent industry is its methodological approach to building its blockchain solution. Cardano is the only peer-reviewed blockchain platform in the world. It is also managed by a group of top blockchain partners with Input Output Hong Kong (IOHK), serving as the development arm, while Emurgo is the commercial part of the protocol.

Cardano founder Charles Hoskinson says the blockchain is on a mission to right all the wrongs in the blockchain space. According to him, Cardano is a third-generation blockchain protocol that incorporates scalability, security, and interoperability.

Cardano uses the highly talked about proof-of-stake (PoS) mining protocol through its uniquely named Ouroboros. This enables transactions to be batched up in epochs (timeframes) in which a delegated node will verify those transactions before adding them to the blockchain.

Even though there are no official figures for its transaction per second (TPS) speed, Cardano’s preference for PoS is faster than the first consensus algorithm; the proof-of-work (PoW).

In addition to this, the Cardano team says it has set out to build a blockchain that will enable “changemakers, innovators, and visionaries” to bring about positive global change. It also says it seeks to “redistribute power from unaccountable structures to the margins to individuals,” enabling a more secure, transparent, and fair society.

Its native token ADA powers the Cardano network, and holders can participate in the operation of the network. This enables them to vote on the expected changes to the network in the near future.

Aside from enabling digital tokens transfer, the Cardano network is also used for several use cases. Agricultural companies use it to monitor their field produce. It has also been used to store academic credentials in a tamper-proof manner.

ADA: Blazing The Trail Despite Being Under Wraps

One thing that makes Cardano special is the exciting projects that will eventually launch when the project is complete. This has served as a buoy for several investors to buy ADA in a bid to increase their stake in the promising blockchain platform.

However, ADA is still in its nascent stage, and its market value is still attached to Bitcoin’s price movement.

ADA has risen and dipped with the world’s first cryptocurrency in the last few months, only breaking the trend for a week after Tesla stopped accepting Bitcoin following energy concerns.

Nonetheless, its strong fundamentals have also lent it good credence. Starting from early this year, ADA has been picking momentum after going through a dismal 2020. It made its intent known when it broke its 2018 record high of $1.07 on Feb. 28, surging to $1.3.

This served as a springboard, and ADA continued its rally, hitting an all-time high (ATH) of $2.3091 on May 16.

However, it could not break above this record level, tapering out soon after. This saw it drop into a freefall to $1.121 on July 19, plummeting 50% with the broader crypto market.

But this month has served as a new whiff for ADA as it has begun to rally once again. It caught some tailwinds soon after its mid-year low of $1.121, shaking off the bears, and has been on an upward trajectory ever since.

At press time, ADA is trading at $1.86, up 18.47%. Its historical performance shows that it has growth potential, and this may be a good time to buy ADA.

ADA Technical And Fundamental Analysis

ADA has been on an uptrend in the last three days, only dipping a few percent and staying above the $1.76 range. Its technicals on the trading chart are promising as the digital asset is trading above the 20-day moving average (MA) price of $1.3829. This indicates bullish momentum and shows ADA is looking to breaking above the $2 resistance level.

Its relative strength index (RSI) is at the overbought level of 83.97, which shows that several investors want to buy ADA.

Wallet Investor believes that ADA is still going to experience more uptrend. Its one-year forecast puts ADA at $3.093, while it is expected to rise to $9.774 in the next five years.

Cardano’s fundamentals have been highly impressive.

The blockchain platform has been snapping up partnerships from all fronts. One of such is with the Ethiopian government, in which the crypto protocol will track student performance in local schools with its blockchain-based system.

Another is its recent approval to be listed in major crypto exchanges in island nation Japan.

However, the biggest buoy for its positive price action has been its expected smart contracts launch.

Currently, in its Alonzo hard fork in its roadmap, the anticipated launch of these digital forms of the agreement will make it easy to develop decentralized applications (dapps) and, therefore, decentralized finance (DeFi) on the Cardano network.

According to a tweet from founder Charles Hoskinson, the expected date for completing the Alonzo phase will be announced this Friday.