What are Cardano’s prospects after the first network upgrade for 2022?
Cardano is in a correction, but fundamentals are getting better
Cardano is in a correction as the broader crypto market eases up after the end of February rally.
Cardano’s core fundamentals are getting better as three upgrades are set to make Cardano better for Dapps.
One of the upgrades recently implemented triggered a 12% price rally.
Cardano (ADA) is one of the biggest platform blockchains by market capitalization. While it has been a work-in-progress for the last couple of years, Cardano’s core metrics are stronger than many of its competitors.
One of the factors that make Cardano stand out is its security. Cardano’s Ouroboros Proof-of-Stake algorithm is the first provably secure Proof-of-Stake algorithm. This is an essential metric because with most financial applications now moving to the blockchain, it could be catastrophic if they run on unsafe blockchains. It’s part of why Ethereum continues to dominate the DeFi market despite its obvious cost and scalability issues.
While Cardano is yet to gain mass adoption, things are looking pretty positive. Several big projects, including a Metaverse project, are coming to Cardano. Besides, the Cardano team has announced several significant updates that could help propel Cardano forward in 2022.
Cardano technical updates could trigger a price rally
The IOHK had scheduled three major updates for 2022, which have already been effected. One of the updates it has implemented is the introduction of light wallets and a Dapp store. The goal is to make Cardano run more efficiently now that it has already introduced smart contracts.
The announcement saw ADA shoot up by over 12%. It’s an indicator that as the other updates are introduced, investors expect the Cardano blockchain could run even more efficiently. Some of the scheduled updates include the introduction of side chains for even better scaling and a solution that will help with synchronization.
Cardano trading in a bearish channel
Source: TradingView
Cardano is currently trading in a bearish channel though volumes are low. In the past 24-hours, Cardano has broken through the 100-day moving average at $0.9271, and the selloff is accelerating.
If Cardano breaches $0.90, prices below $0.85 could be a reality in the short term. On the other hand, if there is a reversal and Cardano pushes through the 50-day moving average at $0.9495, it could be a good signal for prices above $1 in the near term.
Summary
Cardano is working on three major upgrades expected to make it more attractive to Dapps developers. However, like the rest of the market, Cardano is currently in a minor correction after a rally in late February.
