While the world is busy looking at the rise and fall of Ethereum, a coin that has suffered a similar misery is gone unnoticed to a lot of people. Its Cardano (ADA) which to nosedived over 20% in the last week. Cardano’s founder, Charles Hoskinson, who left Ethereum to form his own project saw his ADA rumble under selling pressure would be hoping a bounce back like Ethereum. Here are short term and long term reason why Cardano will bounce back similar to what Ethereum did.
Short-Term- Technicals show a rise is coming
This week, Cardano (ADA) saw a solid decline in price from the $0.0970 swing high against the US Dollar. The ADA/USD pair broke the $0.0800 and $0.0750 support levels creating fear and panic in the mind of the investors and traders that there could be a further downside and like Ethereum, Cardano may soon suffer huge downsides. But the coin sat on a strong $0.0600 support where buyers came into the rescue as they felt it could be the bottom and an appropriate price the buy the ADA coin.
The coin is an oversold territory, attracted good buyers and the prices started slowly recovering as it moved above $0.0650 level. The confidence in buyers slowly started building up a pair even settled above $0.0700 before sliding back to USD 0.067. What looks like the current crucial resistance one would want to watch for ADA is if the coin crosses USD 0.071
If some technical analyst is to be believed, these patterns are typically bullish reversal patterns, where the chart patterns form like an inverted triangle where the prices reach a bottom and where bulls can push back at the bears.
You just need one push for the prices to go back higher and that too seems to be have come as Cardano (ADA), which had announced a partnership with Metaps Plus, a big South Korean mobile platform back in Q2 now has come with an update that they integration of the two may go live in November. It’s a big news for the project and hopefully, this could spark the coins comeback as well.
Cardano- A horse of the long run
As everyone is looking for the next bitcoin, Cardano definitely has shown some potential that it could be one. Available at throwaway prices today, the coin definitely has a strong roadmap and technical superiority to skyrocket its prices. There are several reasons one can say this for and one of the biggest ones might just be the way Cardano uses the technologies that it has at its disposal. Using this capability Cardano has been able to to find creative ways to deal with issues like sustainability, scalability, as well as interoperability which even the best of the coins are currently struggling with. It developed its own techniques to solve scalability, and it doesn’t have to worry about things like storage as of yet since it is still a relatively small blockchain. Thanks to its sub-networks, it solved the issue of bandwidth, and problems with transactions were prevented by using a system called Ouroboros.
The project has also introduced a good combination of wallets. The first is called Treasury and is used for storing small portions of any transaction, and the funds stored in it will be used for funding future projects. Best of all, Cardano will allow its users to choose what the wallet funds will be used for via the voting system.
Additionally, it has a wallet called Daedalus, which has become almost a synonym for safety. It is still not fully developed yet, and the team is working hard to complete their work on it. However, despite this, it has great potential and a lot of things will be incorporated inside of it.
Lastly, a capable team driving the project. Cardano has a team which includes scientists, engineers, professors and alike. Obviously, these are all professionals who know what they are doing, which is yet another reason why Cardano is doing so well.
With a strong team, fewer problems and superior technology, Cardano have a potential to stand tall and even defeat Ethereum in years to come. It all now lies on execution, whether the team can actually walk the talk and make Cardano big.
Does Cardano have the potential to beat Ethereum? Do let us know your views on the same.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.