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Cardano Remains Stable Despite Occasional Hiccup

Cardano’s (CCC:ADA-USD) token is an interesting one to analyze at this point. Although cryptocurrencies rarely trade in a straight line, Cardano is fluctuating more than usual. Some of that has to do with external issues.

Cardano (ADA) token with blue and orange digital background.
Source: Stanslavs / Shutterstock

The token fell sharply recently after popular retail-trading platform eToro decided to pull the plug on ADA due to regulatory concerns–making it another victim of murky regulatory waters that have repeatedly pummeled this nascent crypto market. 

Israel-based eToro said it is changing some of the rules for its platform to comply with new regulations on cryptocurrency trading. Users will still have access and freedom when selling any tokens they own. But users cannot open new positions or add to existing ones with respect to ADA.

In a Twitter (NYSE:TWTR) video, Cardano founder Charles Hoskinson chastised the move. He said that the lack of  “a global regulatory standard” leads to issues like the ones we saw with eToro.

Despite tanking due to the announcement, Cardano has still done well in the year thus far. It has several use cases. And the road map for future growth is well laid out. Considering these factors, it would not hurt to grab ADA at a discount. 

Recent Price Action

Cardano continues to fall with the occasional blip. This bearish outlook will only materialize if one more key foothold gives way, which seems highly unlikely at this point.

The bulls have rallied around a key support level of $1.40 whenever it has been tested. If the bulls stabilize the price above this level, they can then look to push ADA further.

ADA has already broken the $1.8 support level, a key level that could not withstand the selling pressure. The recent crash leaves ADA vulnerable. But if you look closely, there is still an opportunity on offer here with strong fundamentals and sufficient volume.

You have to take your position and wait patiently until the markets settle down and see upward movement. If the selling pressure persists, investors can expect ADA to slice through $1.40 per coin and trigger another price drop to $0.94 or even lower.  

Updates Are Key Catalysts

The lack of enthusiasm for Cardano is understandable. The regulatory pressure is getting to investors, and they do not want to be left holding the bag. However, the key thing worth noting is that Cardano is a solid altcoin with numerous use cases.

That puts it in a different league versus a plethora of meme coins out there, all of whom have done well recently but have little to back themselves apart from price momentum.

Meanwhile, Cardano has an active development team that is cranking out updates regularly. In the runup to these updates, ADA does very well. We are in the third stage of Cardano’s development cycle.

So, there is still plenty of momentum you can capitalize on. These updates are peer-reviewed, so before they go live, you know they have been vetted properly by experienced hands, giving you an extra layer of security.

Cardano Functionality Sets It Apart

Cardano has done well for investors this year. Triple-digit returns are impressive, and remember, the year is not done. But Cardano is not resting on its laurels. Instead, it is laying out an aggressive strategy to build out its platform for sustainability in five stages.

Cardano is a promising project with high chances of success. It has made significant progress toward its goals, and if it reaches them, ADA will surely rise in value exponentially.

Even at this point, Cardano has a lot to offer users. It can take care of 250 transactions per second, a figure that is miles ahead of Bitcoin (CCC:BTC-USD) and Ethereum (CCC:ETH-USD). Cardano’s goal is to hit one million a second eventually.

Blockchain technology updates also take place after careful peer review. That gives them a level of authentication that other coins lack. These factors set it apart from the rest of the altcoins in the market.

In summary, users are excited about Cardano — and they have good reasons to be. But you have to remember cryptocurrencies involve a ton of volatility. There’s no guarantee Cardano will be a success ten or even five years from now. With cryptos, you cannot have that long of a trading horizon.

So, do not invest anything you cannot afford to lose. But considering the near-term catalysts, the time is right to purchase ADA.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio. 


Article printed from InvestorPlace Media, https://investorplace.com/2021/12/cardano-remains-stable-despite-occasional-hiccup/.

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