Fri. Aug 19th, 2022

Cardano is a decentralized public blockchain, the project aims to establish a smart contract platform which focuses on more advanced features. A very good team stands behind the Cardano and according to them, Cardano will bring greater financial inclusion by providing open access for all to fair financial services. It is important to mention that a nonprofit foundation is responsible for Cardano and this is the world’s first peer-reviewed blockchain. Cardano’s platform consists of two layers, the Cardano Settlement Layer (CSL) and the Control Layer. The Settlement Layer is used to settle transactions while the Control Layer is used for smart contracts. Cardano (ADA) is one of the cryptocurrencies which you should definitely not ignore and this cryptocurrency might still be undervalued despite all the problems. There is still a level of uncertainty surrounding this project and one of the factors to consider before deciding whether or not to buy this cryptocurrency is the competition that Cardano will face from other similar projects. The positive thing is that lots of partners are already supporting this cryptocurrency and Cardano (ADA) is already connected with various payment programs. The price of Cardano has been trading in $0.035-$0.040 range for a while and according to technical analysis, the downtrend is still very strong. Cardano (ADA) currently stands around $0.039 and the first strong sign of recovery would be if the price jumps above $0.060. In the chart below (a period from December 2018), I have marked major resistance and support levels which can help us to understand where the price could move. The current resistance levels are $0.050, $0.060 and $0.080, $0.030 represents the strong support level.

We can also notice that the price of Cardano (ADA) has weakened from $0.080 below $0.035 in less than 180 days and the current price level could not be considered the end of this negative trend. Cardano (ADA) remains in the bearish phase but if the price advances above $0.050 it could be a good sign of the trend reversal. If the price drops below $0.030 strong support that would be a strong “SELL” signal and the open way to $0.020.

Recommendation: Lots of analysts agree that the upside is massive for this cryptocurrency but the risk is extremely high. After researching some of the leading Cardano (ADA) price predictions, I found that most professionals predict the bright future for this cryptocurrency but in my opinion, this cryptocurrency still faces lots of problems. It is very hard to explain the actual value of Cardano (ADA) and because of that, I would recommend to everybody to be careful with investing in Cardano (ADA). Cardano (ADA) has a strong resistance area at $0.060 and it would take a break above this level to confirm a new leg higher towards the $0.080 resistance level. If the price jumps above $0.080 that could be a very good opportunity for the short term traders, short-term traders can put the stop loss at $0.075 and take profit at $0.090 or above. If the price drops below $0.030 strong support that would be a strong “SELL” signal and the open way to $0.020.