Cardano (ADA) Price Prediction: Heading Lower to Test Support?

Cardano’s price has broken down under the key $2 level in early trading on Tuesday, and seems to be heading lower as the mood in the crypto market turns somewhat bearish over news of the infrastructure bill being signed into law in the US. At the time of writing, ADA/USD is trading at around $1.86.

Cardano’s Founder Hoskinson Sheds Light on 2022 Roadmap

All the price action has been mostly sluggish in the potential Ethereum killer since late September when the blockchain rolled out its major upgrade, there could be some hope for an upcoming bullish price action after its founder Charles Hoskinson revealed the 2022 roadmap. At a recent AMA session, the first he has held ever since he returned from his tour of Africa, he talked about how the team of developers is assessing the amount of work for the upcoming Basho and Voltaire phases. He also hinted about another group looking into next-generation technology, which sounds somewhat promising, although he has not shared any further details.

The next phase of Cardano’s development will bring about higher performance on the network, allowing the blockchain to support increased transaction volumes, offering projects higher levels of scalability in terms of growth and adoption. The whole phase of development aims to create a self-sustaining ecosystem which will make Cardano completely decentralized, causing IOHK to step back from the initiative.

Hoskinson also went on to announce three upcoming HFC events to take place over the next year, which could vastly improve the quality of service being offered to its users. One possibility is the rollout of the Hydra Layer 2 scaling solution which could significantly boost Cardano’s TPS.

While the price action may not reflect its true potential, we may not want to write off Cardano just yet on account of its sluggish moves. According to data aggregator PoolTool, the number of wallets staking ADA tokens has steadily grown to nearly 1 million users ever since the blockchain rolled out this feature a little over two months ago. More than 72% of ADA’s supply is staked across nearly 3,000 active pools, accounting for a net worth of over $46 billion.

Can Fundamental Developments Power a Rebound Higher in ADA?

In terms of fundamental developments, there are several projects and collaborations being announced which could potentially increase on-chain activity and offer some support to the ADA token. Last week, Cardano-based stablecoin solution Ardana raised $1.5 million in the first round of its public IDO, working towards bringing collateralised soft-pegged stablecoins to users.

Cardano’s ecosystem will also soon see an uptick in NFT projects. One development to look forward to is a partnership between PhotoCromic and cross-chain credit platform Paribus. PhotoCromic will provider a way to further cement the ownership record within an NFT by adding the owner’s biometric hash and generative art that can visually depict the person. Another project to look forward to is Cardingo NFT marketplace, featuring NFT collections based on Cardano’s founder Charles Hoskinson even as it aims to make donations to the Dingo Foundation charity.

ADA/USD Technical Analysis

According to the CEO at deVere Group Nigel Green, Cardano (ADA) could do well as Bitcoin rallies in the current cycle. He believes in the potential of the blockchain on account of its involvement with developing the fintech sector.

Technical analysis of the H4 price chart reveals an extremely bearish bias among moving averages and leading technical indicators MACD and momentum. Since moving below the pivot point at $2.11, Cardano’s price seems to be breaking down and making its way lower to test the immediate support at $1.86.

Keep a close watch on this level as a break below this can cause quite the crash in ADA. The second support level sits at $1.68.