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21 Feb 2022

ADA

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What is Cardano (ADA) and how does it work?

Cardano (ADA) is a blockchain platform for changemakers, innovators, and visionaries, with the tools and technologies required to create possibilities for the many, as well as the few, and bring about positive global change. Cardano is based on a proof-of-stake (POS) blockchain and aims to "redistribute power from unaccountable structures to the margins to individuals".
Since ADA is a POS blockchain it is less energy intensive than a proof of work blockchain such as Bitcoin, and explains why others such as Ethereum are going to upgrade to become PoS.

ADA Cardano team has taken pride in ensuring that the development of the blockchain goes through a peer review research process, where bold and innovative new ideas can be challenged and validated. Cardano crypto is secured through an "environmentally sustainable, verifiably secure" PoS protocol known as Ouroboros. This benefits from the security guarantees of a PoW consensus, whilst using a substantially lower amount of power (four times as efficient as Bitcoin).

Originally launched through 5 rounds of public sales, Cardano coin tokens were held between September 2015 and January 2017, and released to investors shortly after, with an initial pre-sale price of $0.0024, or over 1000x return at current prices. The maximum supply for ADA is 45billion, and there are currently 31billion in circulation. Of the total supply, 16% went to the project founders and the rest was sold in the various sales rounds.

In September 2021, Cardano, also known as the Ethereum killer due to its applications and use-cases, went through a highly anticipated network upgrade called Alonzo. With this upgrade, the network is now able to support a wider range of crypto applications such as smart contract, non-fungible tokens (NFTs) and decentralized exchanges. Since its launch the active number of users on Cardano's network has increased exponentially, breaking the 3million milestone, surging from 190,000 in December 2020 to over 3,000,000, showing how the expanded use-cases and applications have made the coin gain popularity among traders.

Coin Analysis

Last update 21/2/2022
Since its launch on Binance in 2019, Cardano has performed quite well, growing by 1000s of percentages and outperforming many of the other coins in the industry. It is estimated that since its launch at $0.035, Cardano price has grown as high as $3.1, showing a growth of over 88times its original price.

Since reaching this ATH back in September 2021, ADA USD has fallen significantly, retracing below several support levels, and reaching prices as low as below $1, these levels hadn't been reached since early 2021. Ever since, ADA USD has made several attempts to regain bullish momentum, but it's still in free fall currently and it's not looking positive.
ADA/BUSD weekly candle chart with supports, resistance and 20/50/100 EMA key level
ADA/BUSD weekly candles chart
Cardano price prediction is not looking particularly positive currently. On higher time frames (weekly) the prices had touched several times the lower support of $1.1, which corresponded with significant historical resistance and support levels. However, it has struggled to maintain this support and is currently below it, and below both the 20EMA and 50EMA, a particularly bearish signal. Before being able to turn bullish ADA needs to regain the support now turned resistance of the $1.1-1.2 range. This initial move would see the coin move back upwards and towards its EMA levels. Once this has been achieved the next step would be for a weekly candle to close above the 20EMA and 50EMA; this would be a majorly bullish sign and would guarantee further upwards progress.

Recent News about ADA

In recent Cardano news, ADA announced that it will add Oura implementation, a rust-native implementation that gives the ability to observe the blockchain and react to particular event patterns.
Oura is a tool for pool operators, developers, and any user who wants to find information on the blockchain. Technically Oura works as a pipeline that connects to the tail of a Cardano node, via some Ouroboros mini-protocol combination, filters events that match a particular pattern, and then sends a payload succinct, self-contained utility to pluggable observers called "sinks." Although its use-cases are limited to specific Cardano users, this and many other added implementations expand the use-cases and ability of the ADA blockchain to keep up with Defi and other new crypto projects, making it a really bullish sign moving forward.
More details about Oura at this link.
ADA is available for trading on yanda.io dApp.

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Author: Matteo Poole
info@yanda.io