The year 2022 has been a harsh one for crypto investors. Most cryptocurrencies fell by average around 60% since the beginning of the year. Cardano specifically lost around 77% since the beginning of the year. ADA dropped from a high of $1.30 and reached the current price of $0.30. Despite being a strong support price for ADA, the crypto market is still looking bearish all the way up to 2023. If you’re about to buy Cardano, don’t. It might be better for you to wait, here’s what you need to know in this ADA prediction.
What is Cardano Crypto?
Cardano is a cryptocurrency that was created in 2017 by a company called Input Output Hong Kong (IOHK). It is a decentralized platform that is built on a blockchain technology called “Ouroboros,” which is a proof-of-stake algorithm that allows for more efficient and secure transactions.
Cardano is unique in that it is the first cryptocurrency to be built on a scientific philosophy, with a research-first approach. This means that the development of the platform is guided by a team of researchers and engineers who use a rigorous, peer-reviewed process to ensure the security and reliability of the system.
Is Cardano Blockchain Good?
One of the key features of Cardano is its scalability. The platform is designed to be able to handle large volumes of transactions, making it suitable for use by businesses and organizations as well as individuals. In addition, Cardano uses a unique “plutus” programming language that allows for smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code.
Another important aspect of Cardano is its focus on sustainability. The proof-of-stake algorithm used by the platform requires users to stake their own tokens in order to validate transactions, which helps to reduce energy consumption compared to proof-of-work algorithms used by other cryptocurrencies.
Why is Cardano price down?
There are many factors that come into play, affecting crypto prices such as Cardano:
- Market demand: The value of a cryptocurrency is ultimately determined by the market demand for it. If there is a lack of interest in a particular cryptocurrency, or if there are more sellers than buyers, the price may decline.
- News and events: News and events, such as regulatory developments or security breaches, can also affect the prices of cryptocurrencies. For example, if there is a negative news story about a particular cryptocurrency, it may cause people to lose confidence in it and sell their holdings, which can drive the price down.
- Competition from other cryptocurrencies: The increasing number of cryptocurrencies entering the market can also negatively impact the prices of existing ones. As more and more options become available, it may become more difficult for a particular cryptocurrency to stand out and maintain its value.
- Scams and fraudulent activity: Unfortunately, the cryptocurrency market has also been plagued by scams and fraudulent activity, which can negatively impact the prices of legitimate cryptocurrencies. For example, if a cryptocurrency project turns out to be a scam, it may cause people to lose confidence in the market as a whole and sell their holdings, leading to a decline in prices.
Cardano suffered from most of the above points. Investors sold ADA as the crypto bear market hit since October 2021. Additionally, macro news and events were not favorable, such as the war in Ukraine and the bad economical standing in the EU and the rest of the world. There is harsh competition from other crypto projects such as Polygon that is currently being used by many multinational companies. Lastly, the FTX crash created a negative sentiment in the crypto market, affecting in turn ADA prices.
ADA Prediction: Should you Buy Cardano today?
The current price of Cardano represent a great opportunity to buy. In figure 1 below, we can see that Cardano reached the strong support price of $0.30. However, the current market dynamics of cryptos is still looking bearish. This might cause ADA prices to tumble below 30 cents, crashing further towards the next psychological support price of 20 cents.
Cardano can go up in case the entire crypto market redresses higher. On the other hand, the month of December has always been bearish for cryptos. This leads to a conclusion that it’s better to wait before buying Cardano today, most probably till Q1 of 2023.
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