The price of Cardano (ADA) has been trading in $0.030-$0.040 range for a while and according to technical analysis, the downtrend is still very strong. Cardano (ADA) currently stands around $0.033 and the first strong sign of recovery could be if the price jumps above $0.050. Cardano is the world’s first peer-reviewed blockchain and according to its official page, Cardano will bring greater financial inclusion by providing open access for all to fair financial services. A very good team stands behind the Cardano and it is important to mention that a nonprofit foundation is responsible for Cardano. The project aims to establish a smart contract platform that focuses on more advanced features with access to financial services. 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. 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). In the chart below (a period from March 2019), 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 $0.043 to $0.031 in less than 30 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 $0.040 the next target could be located around $0.050. If the price drops below $0.030 strong support that would be a strong “SELL” signal and the open way to $0.020.
Recommendation: 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. If you decide to invest in this cryptocurrency I would recommend you to be careful and to invest a small sum of money in Cardano (ADA), the best time period to keep Cardano (ADA) in your portfolio is between 3-5 years. Cardano (ADA) has a strong resistance area at $0.050 and it would take a break above this level to confirm a new leg higher towards the $0.060 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.