Cardo ADA is the 5th most popular cryptocurrency, hitting its all-time high at $3.1 in early September 2021, with the launch of its smart contracts. Since then, it has been in corrections. Cardano (ADA), which has risen to become the world's sixth-largest cryptocurrency by market capitalisation, had an optimistic 2021 forecast, but it was unable to maintain the September highs. In late October, it lost 15% of its value in one day due to a pre-Halloween fright.
Like other prominent cryptocurrencies such as bitcoin (BTC) and ether (ETH), ADA has struggled to gain traction, which has lately plummeted from all-time highs. By November 9, it had risen to $2.28, only to fall back to $1.70 on November 18. Bears failed to push the price further below. As Cardano's on-chain activity has skyrocketed, the daily transaction volume briefly overtook the second-largest cryptocurrency Ethereum on Friday, November 19, 2021. At the AIBC gaming convention, Cardano was recently honoured as the best DeFi project.
Key Takeaways
Here are the key takeaways:
- Analysts believe that Cardano will recover the recent drop below $2.
- Pointing a Metaverse by the founder Charles Hoskinson could be a big factor for the price to fall further.
- Cardano (ADA) secures the #5 spot on top cryptocurrencies, with a price of $1.77, market cap of $59,550,121,211, 24h volume of $1,464,894,647 and circulations supply of 33,313,246,915 ADA (74.03%).
- ADA was recognised as the best DeFi project at the AIBC summit.
What is Cardano (ADA)
Cardano is a blockchain network with its mainnet. Furthermore, the crypto may do anything it thought was essential for the network with no limitations. Notably, Cardano was built by the Input-Output Hong Kong corporation (IOHK) when it comes to platform development. Furthermore, the Cardano network intends to provide a platform for developers to implement smart contracts and decentralised apps. Cardano just updated to Goguen mainnet, a blockchain platform that provides token lock network functionality. Daedalus is the company's own crypto wallet where users can keep their coins safely.
Technicals of ADA
Cardano is being developed in five stages in order to provide a development platform. This platform will have a multi-asset ledger and verifiable smart contracts for decentralised apps (DApps). Here are the five stages:
1. Foundation os Cardano ADA
Cardano's Phase 1 or Byron was the initial release for the general public in September 2017. In addition, the Daedalus desktop wallet and the ADA cryptocurrency were introduced by the business.
2. Decentralization
In the second step, anybody might participate in the Cardano transaction verification process, making it decentralised. Shelley will start in June 2020.
3. Smart Contracts
Smart contracts and decentralised apps will be available in Cardano's third era. The Alonzo update launch illustrates the Cardano Goguen era's plan. The Alonzo update was released in August 2021.
4. Scaling
Basho intends to build sidechains for Cardano in order to increase its scalability even more. Therefore, the main blockchain will be divided into several smaller chains known as shards.
5. Governance
Cardano's long-term ambition is to create an autonomous system that is not dependent on its parent firm, IOHK. Voltaire will unveil a full-fledged governance system in the next weeks, allowing users to vote on new features. Cardano will be able to construct a genuinely decentralised platform after the first phase is done.
Cardano (ADA) Price Analysis 2021
Cardano (ADA) is currently sitting on the number 5 top cryptocurrencies as of November 23, 2021.
Most analysts have bullish sentiment for Cardano (ADA) at this time. However, the correction isn't over in others' opinion, and a drop to $1.50 is imminent. That being said, let's break down Cardano's daily and weekly chart to see what are the major possibilities in terms of technical analysis.
Weekly Chart Breakdown of Cardano (ADA)
Source: TradingView
If we look at the weekly chart of Cardano/TetherUS, we can see that the price is currently in a channel after touching $1.71 support. Moreover, at this point, we can also see the bullish divergence with the relative strength index, which also indicates a bull market strongly. Weekly market sentiment seems bullish at the moment, and if the buyers can hold above $1.71 support, we might see a rally towards the all-time high of $3.1.
On the other hand, if the price breaks below the channel support, we might see $1.50, which is expected to be the last support (on daily) for it, before $1.0.
Daily Chart Breakdown of Cardano (ADA)
Source: TradingView
If we look at the daily chart, the price is in a perfect rising channel. A double bottom around $1.7 horizontal and channel support, which strongly indicates a rally towards $2.3 and a break above $2.3, will obviously result in the rally towards all times high $3.1.
On the other hand, a break below might result in a move towards $1.5, which is the next daily support.
Market sentiment for Cardano remains bullish at this point. If the fundamentals align with the technical, we might see a strong rally towards $4 in 2022.
Conclusion
Despite Cardano's price decline, this is not the endgame since price corrections are unavoidable for any cryptocurrency. Cardano would hopefully endure in order to restore its full performance and return to the top.
