The general bearishness in the market right now has affected Cardano Price too. ADA has been hovering around $1.52 after failing to break higher. Although Bitcoin’s recent surge helped ADA reach $1.62 it soon faced correction and fell to $1.54.
Cardano now has two ways out of this. ADA might fall to support at $1.49 or buyers’ efforts may push it up to the $1.56 level.
If the price hits these levels, Cardano would probably hold on to this value, as resistance remains close at $1.59. Further, if the buyers can flip the market ADA will soar higher and re-test its resistance.
While all of this rationale is for the short term. What’s in store for the Cardano Blockchain in the long run, and will it stand the test of time is necessary to know before we place our bets on it.
Cardano is better than its competitors?
Popular Crypto Analyst Benjamin Cowen in a recent YouTube Video speaks about Cardano’s potential to become a major smart contract competitor in the long run.
Cowen speaks about his experience with running a validator node on the platform. He says that setting up a smart contract on Cardano is hassle-free providing the asset a significant advantage over other smart contract platforms.
“I think this will stand the test of time. I’ve looked into validators on a lot of different networks – Cardano, Polkadot, Avalanche, MATIC, Solana, Cosmos – I can tell you that the one that I like the most is Cardano.”
Since October of 2020, ADA has been trading above either the 20-week SMA (simple moving average) or the 21-week EMA (exponential moving average), the asset’s longest-ever streak above at least one of both indicators, according to Cowen.
As a word of caution, Cowen said despite the fact that Cardano’s charts look to be strong against Bitcoin, even in a bull market, ADA can be volatile.
He further says, In the short term, ADA’s price is largely determined by Bitcoin, yet the asset’s capacity to stay afloat amid volatile BTC price movement is a sign of Cardano’s strength.
During the recent crypto volatility, the Cardano price has performed better than most. ADA is still up over 800% from the start of the year, despite being 40% down from its all-time high of $2.5147 in May.