Cardano (ADA) price fell by 10% in the last 7 days and is now struggling to maintain the $1 support.
As CriptoNoticias has reported, the digital currency of the Cardano network had an outstanding performance in the last 30 dayswhich allowed it to return to trading at levels not seen in the last 3 years.
However, its price is currently experiencing a slight decline that slows down the bullish rally.
At the time of publishing this note, the price of ADA is $1.09, 65% below its all-time high (ATH) of $3.10, reached in September 2021.
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ADA Quote from January 2021 to December 11, 2024: TradingView.
In the midst of this price correction, One of the main concerns for investors is whether ADA will be able to maintain the $1 support.
As explained in Criptopedia, educational section of CriptoNoticias, in trading it is defined Bitcoin/” target=”_blank” rel=”noreferrer noopener”>medium to an area in which an asset, in this case cardano, stabilizes or bounces parabolically. By market psychology, The price of the currency does not fall more than that level because it would be undervaluing it.
And it is for that reason that this price adjustment is positive for ADA. In fact, If it had continued with its bullish rally, it was to be expected that the price would have a downward correction, sooner or later.
This is something healthy for the growth of a Cryptocurrency because it allows new buyers to acquire it and investors to make profits. This creates a sort of firmer floor or support for future upward movements.
Having support at $1 will be key for ADA to focus on His next goal: 2 dollars.
Why can ADA continue to rise?
Currently, there are mostly bullish outlooks for cardano. In principle, the triumph of Donald Trump in the United States presidential elections revived optimism for the cryptocurrency market.
It is worth remembering that the ADA quote It was $0.30 before the election..
As CriptoNoticias has reported, throughout his campaign, Trump expressed his support for cryptocurrencies and, in addition, promised to work with industry players to promote clear regulation that supports the growth of the sector.
The direction the Trump administration takes regarding cryptocurrencies It will be key for the market to maintain a positive sentiment.
Furthermore, it will be a determining factor for the price of bitcoin (BTC) is established above $100,000. This is important because the good performance of the coin created by Satoshi Nakamoto awakens investors’ interest in risk. Thus there could be greater demand for the rest of the cryptocurrencies such as ADA.
James Foordeconomist and leader of the investment group The Pragmatic Investor, believes that Cardano’s native currency “could easily surpass $2 in the next month, but what happens after that will depend on the broader cryptocurrency market.”
Likewise, he adds that growth in its ecosystem will also be key due to improvements in its scalability and Ethereum-bitcoin-criptomonedas-seguridad/” target=”_blank” rel=”noreferrer noopener”>smart contracts. It also highlights the Hydra implementation, a layer 2 solution that allows processing 1 million transactions per second (TPS) on that network. He furthermore says:
“ADA is arguably one of the fastest networks out there and opens the door to thousands of real-world applications that are now practical.”
James Foord, economist and leader of the investment group The Pragmatic Investor.
This is important because, if more people use the network to decentralized applications (dApps)smart contracts and transfers, There will be greater demand for ADA and that will generate an upward momentum in its price. Users will need the asset to pay transaction fees.
In dialogue with CriptoNoticias, Charles Hoskinson, founder of Cardano, shared his vision of great growth for the network and explained: “Cardano will be one of the largest and most decentralized Blockchain ecosystems in the world in five years. “Our platform’s focus on sustained, informed growth, rather than flashy, short-term innovations, lays the foundation for long-term success.”
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