- Cardano has been in a tight range in the past few days.
- It has formed a bearish pennant pattern on the daily chart.
Cardano price has moved sideways in the past few days as the deep sell-off in cryptocurrencies ease. ADA is trading at $0.5471, where it has been in the past few days. This price is about 41% above the lowest level this month. So, what next for the Ada token?
Has Cardano bottomed?
Cardano is a relatively controversial blockchain platform that aims to become a key part of the industry. Its goal is to help changemakers, innovators, and visionaries with tools and technologies to create possibilities for many.
Cardano uses two notable technologies to solve these challenges. It uses a proof-of-stake technology that is usually faster and more reliable than proof-of-work. Additionally, the platform uses Ouroboros, which is a peer-reviewed, verifiably secure blockchain protocol.
Cardano is controversial for a number of reasons. First, unlike other competitors like Solana, Avalanche, and Cronos, Cardano’s ecosystem is a relatively small one. The number of DeFi, web 3.0, gaming, and NFT projects in the ecosystem is relatively small.
Learn more on how to buy Cardano.
The reason for this is that Cardano existed for more than 6 years without having smart contract features. This made it impossible for people to build in the platform. Since its launch a few months ago, only a few apps in its ecosystem have become popular. They include MinSwap, WingRiders, SundaeSwap, and MuesliSwap.
Still, Cardano developers have insisted that there are thousands of people building in the ecosystem. As shown below, there are over 2,714 Plutus scripts and 855 projects launched on Cardano.
To accelerate this progress, thy have launched Project Catalyst, a fund that has over $16 million. The Catalyst community has over 52k members from about 91 countries.
The developers are also working on the Vasil upgrade that is expected to come in Summer. The goal of the upgrade will be to increase throughput while having minimal changes to the core ecosystem.
Cardano price prediction
The daily chart shows that the Ada price has been in a strong bearish trend in the past few days. The coin has moved below the 25-day and 50-day moving averages. A closer look shows that the Cardano price has formed a bearish pennant pattern that is shown in green. The Stochastic Oscillator has started moving upwards.
Cardano price will likely have a bearish breakout in the coming days as bears target the key support level at $0.40. This bearish trend will continue as long as the price is below the 25-day moving average.
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