The crypto market seems to be consolidating as most crypto prices remained idle in the past few days. Cardano specifically is hovering around a price of $0.36. What’s next for Cardano? Will Cardano crash to $0.30? What factors contribute to lower Cardano prices? Let’s analyze!
What is Cardano Coin?
Cardano’s coin is called ADA and is used to facilitate transactions on the Cardano blockchain. Cardano’s blockchain is designed to be more secure, scalable, and sustainable than other existing blockchain platforms, as it uses a proof-of-stake consensus mechanism called Ouroboros.
Cardano is also notable for its approach to governance, which involves a decentralized decision-making process in which stakeholders can propose and vote on changes to the protocol. This is done through the use of the Cardano Improvement Proposal (CIP) process, which is similar to the Ethereum Improvement Proposal (EIP) process.
Cardano Analysis: What’s happening to Cardano?
In a previous article, we analyzed Cardano and showed how ADA reached a resistance area and was likely to drop. Today, this is exactly what happened, as Cardano prices fell from the resistance area of $0.40 and reached the current price of $0.35-$0.36.
3 Factors that affect Cardano Price
Currently, there are 3 big factors that are affecting Cardano prices:
- Bitcoin price: It is no secret that when Bitcoin moves, the entire crypto market moves along. In fact, Bitcoin still has a significant market dominance of more than 42%.
- Crypto market fundamentals: When an important crypto company crashes, it usually brings the crypto market down with it. The reason for this is that most crypto companies tend to invest in each other. Another reason is crypto investors tend to exit bad investments and liquidate most of their holdings, creating a ripple effect.
- Global market dynamics: When economies flourish, investors increase their investment capital. However, when economies retract, investors liquidate, keep cash reserves, or even buy other investment alternatives.
Cardano Price Prediction: Will Cardano crash below $0.30?
It is less likely that Cardano will crash lower than $0.30. The first lower target will be sliding below the support price of $0.35. From there, ADA should rebound higher as what happened previously.
In a worst-case scenario, if ADA fails to rebound at the $0.35 price mark, ADA should go lower to reach the next target of $0.30. From there also, ADA should rebound higher as part of a market correction, regardless of the general crypto market’s trend.
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Source: https://cryptoticker.io/en/cardano-price-might-drop-below-030-if-this-happens-sell-ada/