Cardano price remained under pressure on Monday as cryptocurrency volumes remained low. ADA sank to a low of $ 2.1650, about 7% off its lowest point this month. That decline brings its total market cap to more than $ 69 billion, making it the fourth largest cryptocurrency in the world.
What is Cardano?
Cardano is a blockchain project that aims to become a better version of the industry. It’s a third generation project created to offer better services than Bitcoin and Ethereum.
Bitcoin and Ethereum, which were the first and second generation in the blockchain industry. Both use the proof-of-work mechanism, which is known for its slow speed, high cost, and inefficiency.
Cardano was designed from the ground up with a proof-of-stake consensus mechanism. In it, blocks in the ecosystem are usually verified by validators who are involved in the network.
The Cardano life cycle consists of five important phases. The first was known as Byron and was the foundation of the network. It was followed by Shelley, whose goal was to promote decentralization. The project’s developers then moved to Goguen, whose goal was to offer smart contracts. The next two tiers are Basho and Voltaire, which deal with scaling and governance.
The smart contract phase was recently introduced and is one of the most important for the ecosystem. This is because developers can create decentralized applications (DAPPs), decentralized autonomous organizations (DAOs), and non-fungible tokens (NFTs), among other things. Think of the upgrade as a way for app developers to build apps for the ecosystem.
However, the biggest challenge facing Cardano and the ADA award is that no one knows if developers will switch to their ecosystem. In addition, the number of similar platforms is increasing. These include Solana, Polygon, and Avalanche. In addition, Ethereum is migrating towards a proof-of-stake network, which means that its network will soon become relatively faster.
Cardano price prediction
The 4-hour chart shows that Cardano price has been in a bearish trend overall lately. It has found significant support at $ 2.01 where it has struggled to move down for the past few days. The price is also slightly below the descending trendline that connects the lowest levels since September 12th.
A descending triangle pattern has formed, which is often a bearish signal. In addition, the price lies along the 25-day and 50-day moving averages. Hence, there is a chance it could break out lower in October.