Cardano (ADA) has been one of the biggest gainers today. It’s up by over 2%, even as the rest of market has been in the red for the better part of the day. But for the last few weeks, the marginal; drops in the value of Cardano have been getting lower by the day. This goes to show that fewer investors now believe that Cardano could drop much further than it has dropped in the last 8 months. This could be an indicator that Cardano (ADA) could be bottoming out after a solid 8 months of market drops.
The declining selling momentum in Cardano has a fundamental basis to it. All through the year, even as the market continued to drop, Cardano has made huge strides in pushing along with its roadmap. For instance, it has already worked on Ouroboros, the first scientifically proven proof-of-stake algorithm. Ouroboros gives Cardano the same level of security as bitcoin (BTC), but makes it more scalable and more energy efficient. Cardano (ADA) is also working on quantum resistance and will be releasing Shelley most likely in Q1 of 2019. These, and other developments to Cardano, give it a huge intrinsic value that at this point counteracts its price drop due to the bear market.
On top of that, the Cardano team is pushing hard in creating awareness about this project in the market. This places it in a good position to grow in the long-run. For instance, within the year, they have made in-roads in several African countries, something that could see it gain in adoption in this market. Just recently, Charles Hoskinson was in Mongolia, and from his tweets, he has met several key figures in this country’s government circles. As such, Cardano (ADA) stands a good chance to become the blockchain that could be adopted by governments, and the market could already be factoring this in, hence the change in marginal declines in its value. All these factors point to a scenario where Cardano could have bottomed-out in the market.
The bottoming out of Cardano is also quite visible in the long-term charts. Right now, Cardano is trading at a year’s low, and has lost close to 95% of the gains it made in the 2017 pump. At its current trajectory, Cardano looks headed to a long-term support level at $0.025. That’s quite close to the current price level of $0.071. As such, even if it were to drop to this support level, the loss to investors who are getting in at current prices is pretty negligible. Besides, markets tend to go against the expectation of what the majority of traders expect. As such, from a look at the chart, chances are that Cardano might not get to this support level, and could bottom out at around $0.07 and $0.05 and enter into a long-term bull run from that point onwards.
Lastly, Cardano (ADA) is supported by Bitcoin (BTC) which also seems to have bottomed out at around $6000 – $6200. For the last couple of months, every bitcoin drop has seen it stabilize around this price level. This is an indicator that it has established long-term support at this price level. As such, the next bitcoin (BTC) Bull Run could start at this price level. If the market rebounds at this point, then Cardano (ADA) will be among the cryptos that could give the highest gains to investors. Cardano reached $1 when it was just a whitepaper. With all the achievements that it has so far, its chances of hitting higher gains than it has made in 2017 are high.