• Wed. Feb 28th, 2024

Is Cardano a good investment?

Cardano price has not been left behind in the ongoing cryptocurrency meltdown. ADA plunged to a low of $0.32, which was much lower than the all-time high of over $3. With a market cap of $11 billion, it means that its valuation has plunged by almost $80 billion in the past few months. So, is ADA a good investment or is it a value trap?

The rise and fall of Cardano

Cardano is a leading blockchain network that grew incredibly popular in 2021. It was launched by Charles Hoskinson, a co-founder of Ethereum. 

Cardano became popular as investors sought for cleaner alternatives to Ethereum, which used a proof-of-work (PoW) mechanism at the time. It was also billed as a faster alternative to Cardano since it can hande thousands of transactions per second (tps).

However, at the time, Cardano did not have an ecosystem since it did not have smart contract capabilities. This changed in August 2021 when the developers launched the Alonzo hard fork.

Since then, thousands of developers have embraced Cardano. However, it is struggling in Decentralised Finance (DeFi), which is one of the top use cases for blockchain networks. It has a total value locked (TVL) of about $70 million, making it the 34th biggest chain in the world. 

It is even smaller than relatively unknown projects like Ultron, Canto, and Velas. At the same time, key DeFi apps in its ecosystem have struggled to compete with the likes of Uniswap, Maker, and Aave. 

It is, nonetheless, finding some success in the NFT industry. Data compiled by CryptoSlam shows that the total volume of NFTs traded in the network has been growing. In the past 24 hours, it has handled over $237k NFTs. Similarly, in the past 30 days, it has handled NFTs worth over $25 million. However, as shown below, the volume has been dropping.

Cardano price prediction

                ADA/USD chart by TradingView

The renko chart above shows that the Cardano price has been in a strong bearish trend in the past few months. In this period, the coin has moved below all moving averages. It has also moved below the important support level at $0.3341, the lowest point on October 23. 

Cardano’s awesome oscillator has moved below the neutral level. Therefore, the path of the least resistance for the coin is lower. As such, at this moment, it is a bit risky to buy Cardano will continue falling as sellers target the key support at $0.300.

How to buy Cardano

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in.

It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest.

eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.


Buy ADA with eToro today

Capital.com

Capital.com is a global broker which offers over 200 cryptocurrencies for its users.

It comes with a range of features such as; great security, 24/7 support, demo accounts and a wide variety of assets.

On top of that, it also has no inactivity, withdrawal or deposit fees, which makes it stand out from other crypto brands.


Buy ADA with Capital.com today

The post Is Cardano a good investment? appeared first on CoinJournal.