Investing.com – Cardano recently integrated its smart contract functionality into the mainnet by implementing the hard fork Alonzo. However, this did not give the price of the local crypto currency ADA any lasting tailwind. Instead, it has lost over 17 percent of its value since the integration of smart contracts. Last was the at US $ 2.17, around US $ 0.90 below the record high reached in early September.
In addition to the recent turbulence on the international financial markets, which led to a lower willingness to take risks among investors, another circumstance caused uncertainty among Cardano investors: Although more than 4,000 Smart Contacts have already been created, more than 99 percent of them are are still in a time block, so they are blocked. This can be seen from the data in the Vercel app.
Innovation boost in the crypto area through Cardano
Still, the Coin Bureau moderator believes that Cardano and its technology can spark a new wave of crypto innovations, similar to what happened six years ago.
With the many decentralized applications (DApps) that are to be started in the mainnet, Cardano offers enormous possibilities, he judges.
“We’re going to see another explosion of crypto-innovation like we haven’t seen since Ethereum launched in 2015, and early adopters will benefit most from it.”
According to Coin Bureau, one reason users and developers are drawn to Cardano is because of its unique staking system, which it believes makes it one of the most decentralized cryptocurrencies in the entire market.
“The staking rewards drop as soon as there are too many Cardanos in a single pool. That promotes decentralization … “
Staking is a method that can be used to generate returns on cryptocurrencies. When you use your coins, you can generate passive income.
“The reward for ADA staking is currently around 4.5% annually. Since the coins are not blocked, it is easy to use tokens and have them work for you. Therefore, almost 70% of ADA staking is currently being used. Offer staked. This makes Cardano the blockchain with the highest value in terms of active staking. “
At the same time, Coin Bureau warns everyone who has succumbed to the Cardano hype.
“Cardano has over 1.6 million users and its community is arguably the most active in the entire crypto space. This is unbelievable, but also the developers’ worst nightmare knowing that their DApps are not receiving this type of traffic.
As a result of this finding, almost every single Cardano project is delaying its start in order to subject its infrastructure to a real stress test, “because if you were to deploy your DApps now, you would be on your knees,” said Coin Bureau.
The inflows into Cardano’s investment products are slowing
As can be seen from the, institutional investors have shifted down a gear after the record run on Cardano.
According to the data, $ 1.9 million was poured into Cardano investment products for the week ended September 17, up from $ 3.5 million the week before.
Cardano – technical outlook
The Cardano rate withstood an initial acid test of the support level at $ 2.03. However, the cryptocurrency has not yet been able to recover sustainably. If that hold doesn’t stop the ongoing corrective move, selling pressure should build towards the August 18th lows at $ 1.87.
A certain relevance can be assigned to this price level, as it represents the breakout level for the big rally to a record high at the end of August. The area is additionally strengthened by the 100-day line at $ 1.81. Falling below this limit clears the way for a test of the smoothing of the last 200 days at 1.60 US dollars. The 200 day line is used by investors as a guideline for setting the limits on their buy and sell orders. If the course stabilizes in this area, a new entry is possible.
To turn the chart image, it needs a rise above the price level of 2.66 US dollars.
Note: This article does not constitute investment advice or a solicitation to buy or sell any asset. It also does not purport to predict the development of the Cardano price. This is only a subsequent comment on the ADA development, which is intended to inform Cardano investors about the latest crypto news and the technical starting position of the.