Cardano (ADA) has now lost 95% of its value since its all time high of January. The above weekly chart for ADA/BTC shows that Cardano (ADA) which until now has been trading in a pitchfork as well as a falling wedge is now at the end of its correction. RSI for the above chart has also been trading in a falling wedge and is now at the point of a break out as it has reached the full extent of its movement. However, the price chart shows that there is still room for one wave down. If that were to happen, it would mean that Cardano (ADA) could complete a 100% correction before it begins a new cycle!
Cardano (ADA) has long ben hailed as an innovative blockchain that is supposed to tackle the problems that Ethereum (ETH) has failed to solve. Cardano (ADA) founder, Charles Hokinson was once an Ethereum cofounder but is now the brain behind this innovative project that is thinking ahead of blockchain. Cardano (ADA) is one of the few blockchain projects that are thinking two steps ahead, focusing not just on the problems of today but the problems of the future. When the internet came into existence, there were those who saw the internet as a big thing in itself but there were those who realized how this technology could be used to revolutionize trade, commerce, communication, networking etc.
Cardano (ADA) has already beaten Ethereum (ETH) at its own game. The blockchain has proven that it has a more fair and just PoS (Proof of Stake) model compared to that of Ethereum (ETH). If a blockhain can work with PoS without giving up on original principles of decentralization, that blockchain is Cardano (ADA). Cardano (ADA)’s architecture is one of its kind and has already proven to be more scalable, seamless and faster than Ethereum (ETH). Of course there are projects like Ethereum Classic (ETC) and Decred (DCR) that still believe in the need for contribution of miners in governance. However, in the future, if PoS proves to be the way forward, then Ethereum (ETH)has already lost the game to Cardano (ADA).
The above weekly chart for ADA/USD shows how Cardano (ADA) has fallen back to a strong support line at $0.08. Earlier in August, this support line was tested by a weekly candle which soon bounced off strongly forming a hammer formation. However, soon afterwards, Cardano (ADA) lost strength as the price plunged again with the rest of the market. This time around, the RSI for ADA/USD on the above chart has now reached the extent of its movement with a falling wedge.
The price is due for a break out before the end of September, during which time the RSI as well as price will break downtrend resistance to begin new cycles. Cardano (ADA) had an aggressive correction but it has not lost its spot to another altcoin. It is temporarily exceeded in market cap by Tether (USDT) but that is expected to change as the market recovers and money flows out of USDT into the market.