Cardano is a blockchain platform, and ADA is the native coin on this platform which is used to make payments and cover transaction fees. It was launched in 2017 by Charles Hoskinson, who is the co-founder of BitShares and Ethereum.
It aims to solve the scalability and transaction speed-related issues that are the drawbacks of Bitcoin and Ethereum, like large cryptocurrencies. Overall it has an experienced team behind the platform that helps to sustain the network for the long term.
Cardano strongly focuses on transparency, and sustainability, offering a fair and resilient infrastructure for cross-border financial transactions. Security is another issue that Cardano has taken seriously for transactions.
It aims to become a stable and secure platform for decentralized applications and financial transactions. The Cardano ledger can handle a large number of transactions without affecting the network performance.
If you want to invest in ADA for the long term, you should consider this platform’s use cases and fundamentals. Though it offers better functionalities than many other similar decentralized platforms, the future will depend on market adaptability and platform management.
The best part is that Cardano has two-layered architecture, whereas most of the other platforms have single-layered architecture. The two layers are Cardano Settlement Layer (CSL) and Cardano Computational Layer (CCL), which serve two purposes to provide better network performance.
At the time of writing this post, ADA was trading around $0.461, which has been in a lower Bollinger Band. It is interesting to notice that Cardano consolidated in the lower BB in June and July. After that, it crossed the baseline and formed higher highs and higher lows in July and August.
After that, it changed the trend and again formed candlesticks in the lower range of the Bollinger Bands, which suggests another consolidation phase, at least for the short term. Moreover, RSI is above 40, but MACD is bearish, which does not qualify ADA for short-term investment. But before making any final decisions, read our ADA prediction and have a profitable investment portfolio.
After reaching an all-time high of $3.1, ADA has been in a downtrend from September last year. Now $0.42 works as a support level, but we do not think it is the ideal time to invest for the long term because candlesticks are in the lower Bollinger Bands. Most technical indicators are bearish.
Even if you believe in the fundamentals of Cardano, you should still not invest for the long term based on the technical aspects of the coin. It is tough to predict when it will hit the level of $1 because the Cardano is bearish.