Cardano Up By 17.99% – Time To Buy Cardano Coin?
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Cardano’s feat on becoming the world’s third-largest cryptocurrency should be a very valid reason to buy ADA.
The popular ‘Ethereum killer’ has been on a tear in the last 24 hours spiking to $2.46 in the early hours of today before crossing this record value and hitting $2.5. This stunning price rally also contributed to the broader cryptocurrency market surge of 6.56%. The crypto market now has a total value above $2 trillion.
In this article, we will consider what this positive price action means for Cardano and whether you should buy ADA now or not.
Cardano: Popular Ethereum Killer
Cardano is an open-source, peer-reviewed blockchain platform created to facilitate transactions in a trustless manner. It was founded in 2017 by mathematician Charles Hoskinson, a co-founder of the Ethereum network.
Cardano is much like the second most valuable crypto, but it claims to be more adaptive and scalable than Ethereum.
The platform uses an environmentally sustainable proof-of-stake (PoS) consensus algorithm called the Ouroboros mining protocol. This makes it one of the leading eco-friendly cryptos in the market.
According to Cardano, Ouroboros consumes less energy in validating transactions on its network. This makes it one of the most energy-efficient protocols in the cryptocurrency space.
The Cardano network is still under development by the Hong Kong-based Input Output Hong Kong (IOHK) but has so far generated a lot of buzz following its consistent roadmap and potential to change the crypto landscape.
Cardano aims to displace the smart contracts dominance of Ethereum by creating a more cost-efficient and interoperable blockchain platform. ADA is the native utility token of the Cardano network. It is used for transactions on the blockchain. It is also used to stake a pool to earn rewards and participate in the smooth running of the network.
ADA Becomes Third Largest Crypto
If you want to buy ADA, now should be a good time. Not only should its current price interest you, but its future prospects should guide your investment decisions. At press time, ADA presently trades at $2.51, increasing 17.99% on the 24-hour trading charts.
It would interest you to know that ADA’s current price is its best price, as it has surpassed its previous all-time high of $2.46. ADA reached its last record high price in May this year, just before the crypto market crash shaved off 50% of the total market valuation of the burgeoning space.
Before now, ADA’s market cap was pegged around $65 billion, and it was the fifth-largest crypto in the world. But right now, ADA’s market cap has soared to $80 billion, making it the third-largest crypto in the world, knocking off Binance Coin and Tether.
The token has been on a steady tear this month. It started the month trading at $1.317 and has continued to climb gradually since then. On August 13, ADA reached a high of $2.136, but this saw it fall to $1.926 a few days later. However, the token found its feet again and surged to $2.108 on August 18.
If you have been considering whether to add ADA to your portfolio, now might be a good time to buy ADA.
ADA Technical and Fundamental Analysis
On the trading chart, ADA price technicals are strong. The asset’s relative strength index (RSI) is at 73.10, indicating it is trading in the overbought region. If you are not bothered by a high RSI, then you should buy ADA now.
Looking at the short-term, ADA is trading above the 20-day moving average (MA) support at $2.1419. This phenomenal one-day rally shows ADA will not likely drop below the $2 mark for some time. The asset’s 200-day MA is also bullish with the digital token trading above the indicator at the $1.5195 mark
This parabolic rise in ADA price follows the recent announcement by the Cardano team for the Alonzo hardfork upgrade.
According to Charles Hoskinson, via a Youtube video, a network upgrade called Alonzo Purple, which would enable the Cardano blockchain to process smart contracts, would be launched on September 12.
The Alonzo Purple hard fork release is the final step of the Alonzo upgrade under the multi-stage phase called Goguen, as seen on the Cardano roadmap. Cardano had previously released Alonzo White last month, and before that, it released Mary hard fork earlier this year. The Mary upgrade enables developers to create tokens on the blockchain.
