Bitcoin is trading in risky territory at the moment. It has failed to push above the $4000 resistance, and is now showing clear signs of weakness. This means there is a risk, it could break out downwards, in one final dip before it starts to rise again. Such a scenario could spell doom for most altcoins, most of which are down by over 90%. In this high risk environment, is Cardano (ADA) worth holding? Well, most likely yes. Here are a few reasons to hold ADA in spite of the risk of capitulation in the market.
For starters, Cardano is already down by over 90%, which means that even another dip in price may not affect its price that much. That’s unless it’s going to zero, which is almost impossible. In fact, there is a massive difference between someone buying ADA now, and one who bought when it was at over $1. The investment risk of the one getting in now is much lower, and the return is also higher. That’s because, even if the market were to turn bullish and Cardano hits a dollar again, the potential return is huge. This is a strong reason, though speculative to buy Cardano (ADA).
But speculation aside, even by looking at what Cardano has achieved so far, ADA could see its value grow significantly in the near future. For instance, after more than a year of hard work, the Cardano project is about to be decentralized. After the Shelly release, investors will be in a position to stake ADA, and earn regular rewards. Since the more one stakes the higher the rewards, there is a good possibility that most people will be looking to stock up on it, and drive up demand. The fact that it is very cheap at current prices makes such a possibility even more likely. In essence, even as the market continues showing weakness, Cardano (ADA) could find significant price support in the Shelley release.
More long-term, Cardano has support in the fact that blockchain is growing in adoption. This means that in a few years, decentralization will be the norm, and Dapps will reign. An explosion of Dapps brings good tidings for Cardano (ADA). That’s because it is one of the most practical blockchains for such applications. It is scalable, will be decentralized soon, and it’s secure. Since ADA is the native token in the Cardano ecosystem, an explosion of Dapps could see its value grow significantly.
On top of that, Cardano has established solid relationships with developing nations, which is where it will be needed most. Through the IOHK CEO, Charles Hoskinson, Cardano (ADA) has managed to establish strong relationships with leaders from different developing nations in Asia and Africa. The result is that, Cardano stands in a good place for adoption once these countries adopt blockchain technology. This is a good support for the price of Cardano (ADA) in the long run. Its future is bright, and the risks low in spite of the prevailing market sentiment.