Cardano (ADA) continues to hold above its 200-Day Moving Average just above $0.3500, but sell pressure appears to be building.
Nonetheless, price forecasts are becoming more downbeat.
The world’s seventh largest cryptocurrency by market capitalization was last trading around $0.3550, down close to 4.0% on the day as the US dollar picks up despite fresh US data showing easing price pressures and a gradually weakening labour market, thus boosting expectations that the Fed’s interest rate hiking cycle is done.
ADA, the cryptocurrency that powers Cardano’s smart-contract-enabled and highly decentralized blockchain, is looking precarious.
If the cryptocurrency does lose its grip on the 200DMA, it risks falling below un upwards trendline that has been in play since late December 2022.
That would open the door to a retest of March lows under $0.30 into play.
Equally, if ADA did find strong support at current levels, a strong rebound from the 200DMA would be taken as a bullish medium-term indicator and a retest of recent highs in the $0.46 area would be likely in the months ahead.
But with the Bitcoin (BTC) price looking vulnerable to a technicals-driven sell-off from current levels in the low $27,000s to the $25,000s, risks seem tiled to the downside for Cardano, given Bitcoin usually leads the broader crypto market.
Cardano’s Hydra Scaling Solution – A Game Changer?
Cardano’s recent downside comes despite a major recent upgrade to its ecosystem.
Developers recently deployed Hydra, a layer-2 scaling solution, to the Cardano mainnet.
According to Cardano’s website, Hydra aims to “increase transaction speed through low latency and high throughput also offering minimized transaction cost”.
Observers hailed the upgrade as a vital step forward, as it will allow the Cardano ecosystem to support decentralized applications that require a higher throughput.
The deployment of more sophisticated dApps on the Cardano blockchain should boost the ecosystem’s trade value locked (TVL) in smart contracts in the long run, which should also boost the demand (and utility) of the ADA token.
According to DeFi Llama, Cardano last had a TVL of around $170 million.
Is It Time to Buy?
Cardano is still down around 89% down from its 2021 peaks, despite the fact that crypto markets may be in the early stages of a new bull market.
As noted above, the risk of a worsening of short-term losses is high, but a drop back to $0.30 would almost certainly attract smart money to move back in.
And just as the new crypto spring arrives, Cardano’s ecosystem is showing a lot of promising signs.
Cardano remains one of the most highly developed blockchains and new Decentralized Finance (DeFi) projects – like the much-hailed launch of the Cardano-based DJED stablecoin project – are springing up, which has been driving admittedly still small, but snowballing growth in Cardano’s trade value locked in smart contracts.
With Cardano’s long-term prospects looking good, now could be a good time to buy.
If ADA posts 10x gains from current levels in the coming years, it won’t matter too much if you bought at $0.35 or $0.30.
Greener Cardano Alternative to Consider – Ecoterra (ECOTERRA)
Investors should always be on the lookout to diversify their crypto holdings.
One high-risk-high-reward investment strategy that some investors might want to consider is getting involved in crypto presales.
This is where investors buy the tokens of up-start crypto projects to help fund their development.
These tokens are nearly always sold very cheap and there is a long history of presales delivering huge exponential gains to early investors.
Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform.
If an investor can identify such projects, the risk/reward of their presale investment is very good.
The team at Cryptonews spends a lot of time combing through presale projects to help investors out.
One such project that the team has identified as having very strong potential is Ecoterra.
Ecoterra is the native cryptocurrency of a blockchain-run green ecosystem that incentivizes environmentally friendly behavior.
Ecoterra’s ecosystem consists of a Recycle to Earn (R2E) platform, a carbon offset marketplace, a marketplace for recycled materials and an impact profile.
The green web3 start-up’s R2E app is supported in any country that uses Reverse Vending Machines (RVMs), meaning a huge potential market.
Ecoterra is in the fourth stage of its ECOTERRA token presale, with tokens currently priced at just $0.00775.
The project just is closing in on the massive milestone of having raised $3.5 million.
Potential investors should note that the presale price will soon rise to $0.0085 and that the token will list on exchanges at $0.01 – a more than 30% jump from current levels.
Visit Ecoterra Here
Read the full article here
