Many people regard Cardano as the upgraded version of Ethereum with better flexibility, faster transactions, and scalability. It offers a wide range of decentralized apps, crypto tokens, and many more.
ADA is the native cryptocurrency of this platform, which can be traded, exchanged, and stored for an investment portfolio. It is also used to pay transaction fees on this network.
The motive of this platform is to be an eco-friendly blockchain development. It uses Proof of Stake consensus, which is more energy-intensive than a Proof of Work system, and the consensus is known as Ouroboros.
Proof of Work requires higher processing power and consumes energy to ensure that nobody does the same transaction twice. It is an age-old consensus mechanism that was first popularized by Bitcoin.
On the other hand, Proof of Stake consensus allows the validator to verify transactions and secure the network instead of using the miner’s network. It saves a lot of energy and makes it an eco-friendly choice for blockchain development.
Users should spend time as investors on this network and stake their own ADA to be qualified as validators. All these validators receive a reward in ADA for contributing to this network.
After the US Fed rate hike, ADA was down; you can find a big red candle on the daily chart. Read our Cardano forecast and price analysis to get a long-term view of this coin.
At the time of writing, ADA was trading around $0.63, which has broken the support level of $0.78. Is it a good time to buy this coin? Theoretically, you should not buy for the short term if the chart shows a downtrend.
The MACD indicator has turned bearish with red histograms on the daily chart. RSI is in the oversold zone, indicating bearish momentum. The last candlestick is also forming below the lower band of the Bollinger Bands.
All these technical indicators suggest extreme bearishness, which is why you should not invest for the short term.
The coin was forming higher highs on the weekly chart, but it broke the trend in the second week of December last year. After that, Cardano consolidated in a range, but now it has broken the support level. We think $0.36 can be the next support level.
If you want to invest in this coin, please wait for a few weeks to analyze the price action. If you want to invest for the long term, it is not the ideal time to buy the ADA token.
