While adverse macroeconomic conditions continue to negatively affect the cryptocurrency market, some altcoins are trying to challenge these negative conditions. cardano was one of the most volatile assets in this crisis. Cardano (ADA) is down 15% in the last 7 days and close to 5% in the last day. It is currently trading at $0.3639.
However, Eight Global’s CEO and prominent crypto analyst Michael van de Poppewho believes that Cardano is ready for a price increase. Cardano price It reveals that Cardano has finally reached the critical support level when it started to rise in 2021. He believes the current price is a very solid position for investors to hold on to ADA for a long time.
Why Is Cardano (ADA) Struggling?
Cryptocurrency market continues to struggle at the moment due to various negative pressures in the global economy. The latest US Consumer Price Index released showed worse-than-expected inflation levels in the economy. The Federal Reserve was already taking a hawkish stance before yesterday’s CPI data. Quantitative tightening and rate hikes were still on the table. Poor inflation data almost certainly came to the fore as a critical detail to support the Fed’s restrictive stance.
The possibility of stagnation and stagflation is another detail that harms the outlook of the crypto market.
The Cardano community continues to believe that the ecosystem is fundamentally strong. DefiYield’s Yevhen Karpenko shared the factors that make Cardano strong in the long run. Believing that the Ouroboros consensus mechanism makes Cardano more decentralized than other cryptocurrencies, Karpenko revealed that Cardano has a pool of more than 1500 validators.
In addition, Cardano, which has a higher transaction speed compared to other cryptocurrencies, actually attracted a lot of attention with this feature. The blockchain’s main competitor, Ethereum, which is currently capable of processing more than 250 transactions per second, has a TPS of between 15 and 45, much lower than Bitcoin’s TPS of 5.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.