{"id":417140,"date":"2023-07-10T14:49:52","date_gmt":"2023-07-10T14:49:52","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=417140"},"modified":"2023-07-10T14:49:52","modified_gmt":"2023-07-10T14:49:52","slug":"cardano-price-prediction-as-ada-gets-bogged-down-is-ecoterra-a-good-short-term-play","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/cardano-price-prediction-as-ada-gets-bogged-down-is-ecoterra-a-good-short-term-play","title":{"rendered":"Cardano Price Prediction: As ADA Gets Bogged Down, Is Ecoterra a Good Short-Term Play?"},"content":{"rendered":"
Cardano is down in the past 24 hours and has struggled to break out during the past two weeks, despite strong gains over 30 days. So might Ecoterra be a good alternative in the short term? <\/span><\/p>\n ADA<\/a> is in a downtrend today, trading below its 50-day and 200-day <\/span>Simple Moving Averages (SMA)<\/span>, a short and long-term bearish sentiment. <\/span>The bearish pressure on June 18 led to a <\/span>Death Cross formation<\/span> where the 50-day SMA fell below the 200-day SMA. <\/span><\/p>\n ADA’s bulls attempted a rally after the death cross but encountered bearish resistance dropping the asset to its current price level. <\/span><\/p>\n Its <\/span>Relative Strength Index (RSI)<\/span> is 46.54, in the neutral zone between the overbought 30 and the oversold region of 70. <\/span>Also, the RSI is moving sideways, reflecting a trend in the assets’ price. It implies that the bulls and bears are evenly matched in today’s market.<\/span><\/p>\n <\/p>\n ADA’s <\/span>Moving Average Convergence\/Divergence (MACD)<\/span> is above its signal line and converges with a negative value confirming the bearish sentiment.<\/span><\/p>\n Also, its Histogram bars are fading, hinting at a further price drop for the asset in the coming days. ADA will likely continue its descent till it rests on its nearest support level.<\/span><\/p>\n ADA is trading above its closest support of $0.2752 as it attempts to recover today. The bulls at the $0.2603 support level moved the asset to its current level.<\/span><\/p>\n However, the bears at the $0.2973 resistance level continue to limit their price action. Based on the bearish outlook of the indicators today, a further price drop for the asset is likely. <\/span><\/p>\n If the bulls rally above the $0.2973 resistance, a return to the $0.3227 price level is possible. <\/span>ADA will likely continue its retracement in the short term with the potential for a long-term price recovery if the bulls prevail.<\/span><\/p>\n Several factors could affect the price of a cryptocurrency. For Cardano, it has remained below the $1 price mark since its decline from its all-time high value of <\/span>$3.09<\/span><\/a>.<\/span><\/p>\n Factors such as laws of supply and demand, macroeconomic factors such as inflation and recession, and crypto regulations combine to cause price volatility.<\/span><\/p>\n Crypto<\/a> regulations created a major concern this year as the US Security and Exchange Commission (SEC) labeled cryptocurrencies such as ADA as securities<\/span>.<\/span><\/p>\n This tag led to an adverse price action among cryptocurrencies, reflected in a price drop after the announcement. <\/span>Also, investor sentiment and utility cannot be overemphasized since the more a token is acquired and traded, the higher its value. <\/span>Developmental trends and updates within a crypto ecosystem also help its price action.<\/span><\/p>\n An influential member of ADA’s community, ADA Whale <\/span>hinted<\/span><\/a> at the upcoming release of a decentralized payment solution on Cardano called Hydra Pay. <\/span><\/p>\n This payment solution will hopefully provide nearly instant settlement on the Cardano network. Also, ADA Whale noted that the new release is compatible with all Cardano wallets on the network.<\/span><\/p>\n This feature gives users access to cheap and faster inter-wallet payments. However, a sender must lock up funds to conduct a successful transaction. <\/span><\/p>\n The funds are released to the recipient after presenting valid proof from the sender as payment evidence. <\/span><\/p>\n Also, ADA Whale quickly added a <\/span>disclaimer<\/span><\/a> regarding overselling the true capacity of Hydra’s transaction throughput. He stated that there is a need to be cautious when dealing with decentralized finance (DeFi). <\/span><\/p>\n Another <\/span>Twitter user<\/span><\/a>, reacting to these comments, stated that his concern for Hydra is increased centralization similar to Bitcoin’s Lightning Network. <\/span><\/p>\n IOG<\/span><\/a>, the development group behind Cardano, announced the release of Dynamic peer-to-peer (P2P) networking in the ecosystem. <\/span><\/p>\n Dynamic P2P is a mechanism that continuously refines the network using a peer selection process. <\/span><\/p>\n The main aim is to eliminate non-optimal peers and retain strong connectivity. Therefore, peers with the least contributions are periodically removed and replaced with active alternatives. <\/span><\/p>\n Cardano hopes to improve its network’s scalability, security, resilience, and performance. These improvements will likely have a <\/span>positive influence<\/span><\/a> on ADA’s price. <\/span><\/p>\n According to Electric Capital’s mid-year crypto industry report, as of June 1, 2023, there were over 21,300 monthly active open-source developers. <\/span>However, based on the report, the figures decreased by 22% in the year-on-year analysis since June 2022. <\/span><\/p>\n Most developers that quick were new entrants with less than one-year experience working in crypto. <\/span>This innovation will likely boost ADA’s utility, adoption, and ultimately its price if it makes a positive impression on investors. <\/span><\/p>\nBears Prevent Cardano from Claiming New Highs<\/h3>\n
Cardano Support and Resistance Levels <\/span><\/h3>\n
Factors Affecting Cardano’s Price<\/h3>\n
Recent Trends In Cardano’s Network<\/h3>\n
Cardano’s Unique Peer-to-Peer (P2P) System Promoting Decentralization<\/h3>\n
Experienced Coders Still Build In Crypto As New Developers Decline<\/h3>\n