Cardano poses a serious risk to Ethereum and is taking great strides towards overtaking it.
As 2021 has progressed, one thing in the world of financial markets has become clear: cryptocurrencies have now entered the mainstream. With the likes of Bitcoin achieving unprecedented growth, the race is on for who is number 2 when it comes to crypto. With Ethereum previously sitting comfortably in that spot, it appears that Cardano may be hot on its heels and looking to take its place.
Given that the founder of Cardano, Charles Hoskinson, was one of the original founders of Ethereum it is perhaps unsurprising that it is launching a serious challenge. The Cardano coin, known as Ada after the 19th-century mathematician, has seen serious growth over the last few months and this follows on from a very strong 2020. Before considering how much of a threat Cardano is to Ethereum, it is worth having a look at the different cryptos that exist.
3 Generations of Crypto
As technologies have developed, so have cryptocurrencies, and is often the case with development, the later versions tend to come with improvements. There are 3 generations of crypto.
First-generation cryptocurrencies include Bitcoin, Litecoin, and Dogecoin. These are the earliest and first to market and are credited with creating all that is now associated with cryptocurrencies such as blockchain. First doesn’t always mean best and although Bitcoin may have the most value at present, these first-generation currencies are often seen as slow with outdated technology.
Ethereum is classed as a second-generation cryptocurrency and is what saw the introduction of smart contracts. These came about after the creator Vitalik Buterin came to the conclusion that agreements between two parties that were decentralized could benefit from blockchain technology. This means that many businesses now use Ethereum to build their presence.
Third-generation cryptos is where Cardano, and Polkadot, come in. These cryptocurrencies use new technologies that make them faster and also non-reliant on proof-of-work. Instead, they operate on a proof-of-stake blockchain.
How Cardano Has Performed
The top 2 cryptos took a tumble in value during the early part of 2021. After hitting an all-time high, Bitcoin took a slight fall before rising and tumbling again. These falls were nothing like investors experienced in the early days, but still, they were falls. Cardano proved itself as the exception.
Whereas other cryptocurrencies were experiencing a bumpy ride, Cardano seemed to have a clear run. The value of Cardano has increased 6 fold since December 2020 and has seen an astonishing 2,000% growth over the last 12 months. While cryptos around it were spiralling, Cardano demonstrated resilience and showed why it is now the place to invest.
Cardano vs Ethereum
So, can Cardano really be a serious rival and topple Ethereum from the number 2 spot? Could it even go a step further and topple Bitcoin from the top? In short, the answer to both of these questions is yes. Cardano poses a serious risk to Ethereum and is taking great strides towards overtaking it. In terms of Bitcoin, it may not happen any time soon, but there is real potential for Cardano to become the number 1 cryptocurrency.
Where Cardano really stands out from Ethereum right now is in respect of fees. While Cardano does attract transaction fees, those from Ethereum are notoriously high with some users reporting that have spent £1,000s in fees alone. The proof-of-stake model as opposed to the proof-of-work also sees Cardano being unique and standing out from the crowd. This all means that in time, Cardano is sure to rise to the top.
Cardano Price Prediction: ADA ready to explode to $4
- Cardano price returns to bullish conditions, denying further sell-side control
- An imminent breakout towards new all-time highs is likely.
- Little resistance ahead, but bulls should remain wary.
Cardano price has failed to capitalize on the movement generated by its closest peers, Bitcoin and Ethereum. As a result, very tight and challenging trading ranges have been the norm for Cardano, but that may change here soon.
Cardano price targets a breakout above $2.45
Cardano price has a very bullish set up on its $0.05/3-box reversal Point and Figure chart. If a new column of Xs forms and hits the $2.45 entry, three things happen simultaneously. First, a double-top is broken, confirming an entry signal. Second, the entry confirms a complete Bear Trap Point and Figure pattern. Finally, the entry at $2.45 is a breakout above the dominant bear market angle.
The breakout could be the very beginning of a new bullish expansion phase for Cardano price. The initial target on the breakout is based on the horizontal profit target method in Point and Figure analysis. $4.05 is the initial range and would be a new all-time high.
However, the current trading conditions still have a significant bearish weight. Therefore, Cardano price must remain above the $2.05 value area. If it fails to hold $2.05 as support, a return to the $1.80 trading range is likely.
ADA/USD $0.05/3-box Point and Figure Chart
Bulls should also be aware of some resistance on any breakout near the prior swing high and high volume node at $2.80. While the momentum of the breakout may make any near-term resistance moot, $2.80 has been a consistent source of trouble for Cardano, and it would certainly be odd for it not to provide some resistance in the future.
Cardano Price Analysis: ADA/USD set to surpass the intraday highs of $2.3
- Cardano price analysis is bullish today.
- The ADA/USD pair formed a lower low yesterday.
- Today we expect to see Cardano’s value rebound somewhat.
Today’s Cardano price analysis is bullish, as a new lower low was formed following a substantial decline over the previous 24 hours. As a result, ADA/USD should recover some of its losses later today as bears run out of steam, according to our predictions.
Cardano price movement in the last 24 hours: Cardano faces stiff resistance at $2.2
Over the last 24 hours, ADA has traded in a range of $2.178-$2.198, with considerable swings from one day to the next. The volume is up by 27.43 percent and stands at $2.78 billion. In comparison, the overall market cap is valued at about $70 billion, placing Cardano in third place among all cryptocurrencies by market cap.
ADA/USD 4-hour chart: ADA set to reverse today?
On the hourly chart, after a significant drop, bears are weary, with Cardano’s price starting to reverse. The RSI is climbing, implying that the price will continue to rise. The current resistance level for Cardano is $2.2, which was established by a lower high.
The RSI is climbing, and the price should follow suit as no technical factors suggest otherwise. ADA/USD will rise if bulls break through the $2.22 resistance level.
ADA/USD 4-hour chart. Source: TradingView
On the 4-hour chart, we can see that after a substantial fall, bears are weary, with Cardano’s price starting to reverse. RSI is moving up, suggesting that the price will continue to rise. The coin’s current resistance level is at $2.2, formed by a lower high.
The RSI is moving up, and the price should continue to follow, as no technical factors suggest otherwise. If bulls manage to break through the resistance level of $2.22, then ADA/USD will rally towards its next resistance level at $2.4 – $2.45 – $2.5.
After establishing two lower highs above $2 in early October, Cardano hit a new downside high of $2.30 in mid-October, followed by the current range of $2.178-$2.198. Here we’re likely to see a decisive break – either down or up – and we might anticipate temporary bearish momentum, as seen on the 4-hour chart, before ADA/USD recovers and starts gaining ground again.
Over the next 24 hours, the Cardano price is expected to recover some of its losses. We might anticipate bearish momentum to continue throughout this week if a lower high is hit.
Cardano Price Analysis: Conclusion
From a long-term perspective, this still looks like an excellent time to invest in Cardano.
Looking at the 4-hour chart, we can conclude that ADA is following an overall bullish trend. However, with RSI moving up and establishing a higher low at $2.178, this might be the beginning of a more extensive recovery.
ADA Price Seems to be Stuck While Cardano Eco-system Is Blooming !
Over the last 24 hours, the entire market has had mixed results. Cardano’s price has been extremely stable over the last four daily sessions. The price of ADA has been rapidly growing this year, with an increase of 1426 percent. Its current price per ADA coin is $2.20,, and its total market value is close to 70 billion dollars.
For the past few weeks, the Cardano price has been stuck in a tight range, but it’s finally exhibiting signs of life. The price of the coin is now about $2.20. That should continue to climb as long as there are no major swings or occurrences that could cause it to fall in value.
For weeks, the price of Cardano has been drifting sideways. Following a higher low over $2, a lower high of $2.30 was reached in early October, indicating consolidation in a narrower range.
As a result, there is a chance that the coin will break out in the near future. The coin will break out in either direction because this is a symmetrical triangle. The resistance at $2.5 and the support at $2.0 will be critical levels to watch.
Ben Armstrong, a.k.a. @Bitboy Crypto, believes the ADA price cycle is the most parabolic ever, and has set a $15-$20 end-of-year target in a tweet.
The most parabolic action is at the end of the cycle. I do believe we can see #Cardano $ADA between $15 – 20 at the very end. I believe it is possible.#ADAGang what can I say? 🤷 pic.twitter.com/JWKjqanoUc— Ben Armstrong (@Bitboy_Crypto) October 9, 2021
On the fundamentals front, the Cardano ecosystem is becoming increasingly busy, with a wide range of projects preparing to debut. RavenDex is one such project, a decentralised exchange that has sold more than 60% of its tokens to early adopters in a private sale round and plans to deploy a fully functional system before the end of the year.
During the previous session, Derived, another DeFi project, launched its IDO. Derived is a multi-chain synthetics asset trading platform built on Cardano that will also enable cross-chain services across other leading blockchain networks including Ethereum, Polkadot, Avalanche, and Binance Smart Chain.
Cardano is gaining traction across the board, not just in the DeFi space. Over the last several weeks, the blockchain has begun to support NFTs, allowing users to mint and sell NFTs without the requirement for a smart contract address. One such venture, SpaceBudz, just reported the successful completion of its first Cardano-based NFT sale, which surpassed $1 million, setting a new high for the network.