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Cardano Founder Charles Hoskinson Asks Why You Care About Its Price

A frothy of late digital asset market is taking a breather. But among top tier crypto plays, Cardano (CCC:ADA-USD) bulls have been suffocating more than others.

Cardano (ADA) token with blue and orange digital background.

Source: Stanslavs / Shutterstock

Let’s look at what’s behind some of the price action and what, if any, a plan of attack going forward might look like for ADA investors.

Ethereum (CCC:ETH-USD). Bitcoin (CCC:BTC-USD). Solano (CCC:SOL-USD). Polkadot (CCC:DOT-USD). They’re among the multi-billion and even trillion dollar elite of digital currencies.

And for good reasons too, well if you’re privy to how they’re reshaping the financial landscape beyond ordering two pizzas for 10,000 Bitcoins more than a decade ago.

Moreover, at $63 billion in valuation and sixth among cryptos, Cardano / ADA can be included in that short list of disruptors.

As with any risk asset group and following fairly confident new all-time-highs, bullish cheer has been replaced by bearish jeers entering November’s back half. Well, almost.

The price declines from this month’s peak valuations have certainly pinched a bit. But ETH, DOT and BTC are also all still hanging on by a thread to monthly gains or just barely underwater. SOL remains higher, rising from $160 a month ago to $223 now.

Yet the price action has been a great deal more hostile of late for ADA and one of crypto’s so-called blockchain “Ethereum killers.”

The ADA coin peaked just prior to early September’s hard fork upgrade, which added smart contract functionality and was dubbed “Alonzo.”

The rollout on Cardano’s public blockchain puts the network in position to capture a piece of the growing decentralized finance arena and today’s crown jewel, the non-fungible token (NFT) market.

None of that has changed for ADA. However, strong expectations and bullish sentiment leading into the release may have conspired against the Cardano coin.

And given still intact gains of more than 950% in 2021, what could be initially chalked up to as sell-the-news profit-taking has worked its way into a full-blown correction of about 42% over the past two months.

The question now might be this: is a fairly common sized bear cycle enough to produce more millionaire ADA coin holders going forward?

Ethereum’s co-founder Charles Hoskinson might warn, “why do you care?”

But without simply bowing to that type of fear, uncertainty and doubt, investors may be better served to let the Cardano price chart do the talking when buying or otherwise.

Cardano Monthly Price Chart

Cardano (ADA-USD) corrective pullback into key support zone
Source: Charts by TradingView

Are we all destined to be poorer millionaires as Chuck cautioned on social media? Maybe, but who’s to say climate change or an asteroid doesn’t get us all first?

Today, despite the possibility of hyperinflation and obvious speculative excesses of cryptos in general, what is known is that Cardano is now trading in an area of technical support worthy of becoming a longer-term bottom.

But owning the altcoin isn’t without danger. Given the Cardano coin’s price volatility and as the illustrated monthly chart details, there’s still the possibility of significant downside risk first.

Even if a new bullish cycle emerges in the next couple months, a successful bottom that holds support could reach as deep as $1.20 in ADA.

As much — and to pay some non-inflated respect to Charles and pizza — I’d like my Cardano served extra-crispy closer to the grill line at $1.20 with a bullish side of stochastics before considering a healthier-looking purchase.

On the date of publication, Chris Tyler holds (either directly or indirectly) positions in Grayscale Bitcoin and Ethereum Trusts (GBTC, ETCG and ETHE).  The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.


Article printed from InvestorPlace Media, https://investorplace.com/2021/11/cardano-founder-charles-hoskinson-asks-why-you-care-about-its-price/.

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