The Cardano price remained under pressure on Monday as cryptocurrency volume remained low. ADA declined to a low of $2.1650, which was about 7% below the lowest level this month. This drop brings its total market capitalization to more than $69 billion, making it the fourth-biggest cryptocurrency in the world.
What is Cardano?
Cardano is a blockchain project that aims to become a better version of the industry. It is a third-generation project that was created to offer better services than Bitcoin and Ethereum.
Bitcoin and Ethereum, which were the first and second generations in the blockchain industry. They both use the proof-of-work mechanism that is known for its low speed, high costs, and inefficiency.
Cardano was built from scratch using a proof-of-stake consensus mechanism. In it, blocks in the ecosystem are usually verified by validators who have a stake in the network.
Cardano’s life cycle has five key stages. The first one was known as Byron and was the foundation of the network. It was followed by Shelley, whose goal was to foster decentralization. The project’s developers then moved to Goguen, whose goal was to offer smart contracts. The next two stages are Basho and Voltaire, which will deal with scaling and governance.
The smart contract stage was launched recently and is one of the most important for the ecosystem. That is because it is enabling developers build decentralized applications (DAPPs), decentralized autonomous organizations (DAOs), and non-fungible tokens (NFTs) among others. Think of the upgrade as a way in which app developers are able to build apps for the ecosystem.
Still, the biggest challenge for Cardano and the ADA price is that no one knows whether developers will shift to its ecosystem. Besides, the number of similar platforms is rising. They include Solana, Polygon, and Avalanche. Also, Ethereum is migrating towards a proof-of-stake network, meaning that its network will become relatively faster soon.
Cardano price prediction
The four-hour chart shows that the Cardano price has been in an overall bearish trend recently. It has found a substantial support at $2.01, where it has struggled moving below in the past few days. The price is also slightly below the descending trendline that connects the lowest levels since September 12.
It has formed a descending triangle pattern, which is often a bearish signal. Also, the price is along the 25-day and 50-day moving averages. Therefore, there is a possibility that it will break out lower in October.
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