Charles Hoskinson has a lot of experience creating blockchain projects. He co-founded Ethereum, Ethereum Classic, and BitShares. In time Mr. Hoskinson realized that Ethereum and its forks had some very severe scalability problems so he left those projects to found yet another blockchain network that would be fit to manage industrial-level applications in real-time, using third generation blockchain technology instead of the second generation, as was the case with Ethereum. That new project is called Cardano.
Cardano is a rather young project at eleven months of age that so far has invested minimal effort or resources in public relations or marketing. It has achieved an excellent reputation in a concise time, and it’s considered the leader when it comes to blockchain 3.0 technology.
This blockchain platform includes, of course, a cryptocurrency called ADA which has been remarkably stable during the current year’s bear attack but has, nevertheless, lost a lot of value. It’s currently worth ten percent relative to its all-time historical high. It’s at $0.041 as we write this.
The question is, can ADA keep going down? Will it reach 0.10 USD again or just keep moving to even lower prices? The jury is still out on that.
Let’s get the obvious out of the way first. As long as the market remains a toy for the bears, every asset can go down, and ADA is not an exception so, in principle, yes, it could go even lower. But then again, you have to take Cardano’s particular characteristics and the technical market analysis for ADA.
We start with Cardano’s current status as a blockchain solution provider. Over the next few days, it will upgrade its network to enhance performance and safety (it’s called Shelley and Cardano 1.4), and it’s been working hard to gain adoption in Africa and countries of the third world that most other blockchains are ignoring.
Their rationale is quite pragmatic and could be incredibly useful: these are places in which institutional financial services are lacking for the most part but in which most people have a cell phone. So Cardano is gaining adoption for ADA by bringing payment and financial solutions to people’s mobile phones without the need for a bank account.
In a less quantifiable subject, this blockchain is considered to be the world’s most innovative. Because of the significant progress, this project has made in only eleven months; experts believe it to be undervalued regarding real-world value and utility.
And now for the coin’s technical market analysis. The usual ways to evaluate the value chart point to a coin that’s oversold and undervalued.
So both a qualitative appreciation of the project and a technical market analysis point to the same thing: undervaluation. Oversold assets often bounce back quickly as the market adjusts itself. It’s not a rule, but it is the most frequent outcome. If you put all this together, you’d conclude that while it is indeed possible for Cardano to go below further, it’s not likely at all.
Moreover, a few hours into Thursday, after last Wednesday’s bear attack, ADA and TRX were the only two tokens in the top ten trading in green numbers which would suggest that ADA is already recovering. But if it did go even lower from here, it would be a fantastic opportunity to buy one of the most promising coins in the cryptosphere at an insanely low price.
[Image courtesy of Unsplash]
Disclaimer: All information provided through this article should not be regarded as investment advice, nor should be taken for granted for crypto trading purposes. Before making any investment or trading plans, make sure to inquire about the information diligently by carrying out your very own research. Thank you.