Cardano needs help getting out of the steep dive, but it could be the opposite purchase

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

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It hit its lowest point on Dec. 20 at $ 1.2084, 59.1% lower than the former peak. However, the ADA-USD has risen (slightly) since then. However, it is still lower by more than 58% from its peak.

Like many other high-capitalized cryptocurrencies, Cardano experienced a recent peak in early November and has fallen considerably since then. It now seems to form the lowest point and could form a price base from which to turn. This depends on whether most cryptocurrency-related sales have ended.

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

However, Cardano showed a high degree of correlation with other major cryptocurrencies. As they start to rise, it is possible that the ADA-USD could do the same.

Where things stand with the development of Cardan

Cardan’s weakness means that some investors have really lost confidence in the cryptocurrency. Cardano may need to show significant progress in smart contracts and other more advanced aspects of developing its platform in order to win back some of these investors.

To this end, Cardano developers have begun producing protocols for making irreplaceable tokens (NFT) in the Cardano block chain. That can be seen in this recent article with Seabug on medium.

The arrival of smart contracts for Cardano happened in September and helped raise the price. But since then, there has been a shortage of developers who have jumped on the Cardano bandwagon to build new applications for smart contracts and Cardano-based NFT.

This upgrade was known as Alanzo jaws. Alonzo forks enable smart contracts for Cardano using a programming language called Plutus scripts. According to the team that built the hard fork, this is a “purpose-built language for developing smart contracts”.

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

However, I have been concerned in the past that Cardano developers have not taken over for smart contracts. Cardano still needs the acceptance of developers to use the language in new smart contracts, as well as in decentralized applications (dApps), NFT or DEX. How quickly this happens is now possible to guess.

As one analyst said, “Cardano promises a lot, but whether it can actually deliver remains to be seen.” as stated Business Insider.

What to do with Cardano

One example of this is that there is no major work NFT Market to has taken a large market share through NFT trading.

This may happen in the future. But for now, the Cardano smart contracts platform has yet to catch up with new games, DeFi apps, NFT, and more.

As a result, I suspect there could still be a downside to the ADA-USD price. But on the other hand, there have already been quite a few blows.

So it’s probably a good time to start collecting a few ADA-USD tokens to increase the position as it gets cheaper. The reason is that you can never reach the bottom in stocks or investing in cryptocurrencies.

When something seems cheap or just the opposite, it usually pays to start taking a stake. This gives the investor trouble when trying to reach the lowest value of the falling asset price. I use this technique quite often, especially when I know I will be a long-term property owner. Maybe it’s the right time to do it with Cardan.

At the time of publication, Mark Hake did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are the opinions of the writer who are the subject InvestorPlace.com Guidelines for publication.

Mark Hake writes about personal finance at mrhake.medium.com and leads A guide to total return values which you can review here.

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