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Cardano appears near a bottom, so this might be a good time to buy


Cardano (CCC:ADA-USD) has been on a prolonged decline since peaking on September 1 at $ 2.9634 per ADA-USD token. As of today, January 14, ADA-USD is at $ 1.26.

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It hit a low on December 20 at $ 1.2084, which puts it down 59.1% from its previous high. However, since then the ADA-USD has drifted (slightly). But it is still down more than 58% from its peak.

Much like a host of other high market cap cryptos, Cardano experienced a recent spike in early November and has seen a steep tumble since then. It now appears to be forming a low point and could form a price base from which it could turn. It depends on whether most of the crypto related sales have ended.

Cardano experienced two peak periods in 2021. The first was in April when it peaked at $ 2.3091 on May 15. So its second high in September at $ 2.9634 was 28% higher than the previous high.

However, Cardano has shown a high degree of correlation with other major cryptos. When they start to rise, it is possible that the ADA-USD will do the same.

Where do things stand with the development of Cardano?

The weakness of Cardano implies that some investors have really lost faith in the cryptocurrency. Cardano may need to make significant strides towards smart contracts and other more advanced aspects of its platform development to win back some of these investors.

To this end, Cardano developers set out to produce protocols to create non-fungible tokens (NFTs) on the Cardano blockchain. This can be seen in this recent article by a group called Seabug on Average.

The arrival of smart contract capabilities for Cardano came in September and helped push the price up. But since then, there has been a dearth of developers jumping on the Cardano bandwagon to produce new Cardano-based smart contract and NFT applications.

This upgrade was known as the Alanzo fork. The Alonzo fork enables smart contracts for Cardano using a software language called Plutus scripts. It’s “a specially crafted smart contract development language,” according to the team that built the hard fork.

Developers can use the Cardano blockchain for decentralized exchanges (DEX), NFTs, and external data (oracles) to power smart contract applications.

However, I have worried in the past that developers haven’t used Cardano for smart contracts. Cardano still needs developer approval to use the language in new smart contracts as well as decentralized applications (dApps), NFT, or DEX. How quickly this happens is up to you now.

As one analyst put it, “Cardano promises a lot, but it remains to be seen whether it can actually deliver,” according to Business intern.

What to do with Cardano

An example of this is that there is no large NFT market that has taken a significant market share with NFT trading.

It could happen in the future. But as of now, Cardano’s smart contract platform has yet to successfully integrate new games, DeFi, NFT, etc.

As a result, I suspect that there might still be a drop in the ADA-USD price. But, on the other hand, it’s already taken quite a few hits.

Therefore, it is probably a good time to start accumulating ADA-USD tokens, with the aim of increasing the position as it becomes cheaper. The reason is that you can never really call a bottom in a stock or crypto investment.

When something seems cheap, or just off the charts, it usually pays to start taking a stake. This makes it worthwhile for the investor to try and call a bottom in an asset price that is falling. I use this technique quite often, especially when I know I will be the long term owner of the asset. Maybe now is the right time to do it with Cardano.

As of the publication date, Mark Hake does not hold (directly or indirectly) any positions in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.

Mark Hake writes about personal finance on mrhake.medium.com and run the Total Value of Return Guide that you can consult here.


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