Schlagwort: crypto business

Cardano (ADA) has officially entered the bear market. The coin has been on a downward retreat for the last few months. Although there have been cases where it has rallied slightly, overall, the price action has remained quite suppressed. Here are some key facts:

• Cardano has lost over 90% from its all-time highs in 2021

• The coin has also fallen below the crucial $0.5 support level

• ADA however still has a lot of potentials and could hit $10 by the end of the year

Data Source: TradingView 

Cardano: How feasible is $10

For ADA to hit $10 by the end of the year, the coin will need to grow by 20x in six months. While this may seem like a pipe dream owing to the slow sentiment in the market, it’s actually not unprecedented. 20x growth in crypto is after all something quite common. 

However, things will not be that simple for ADA bulls. But, it is clear that the coin is heavily undervalued. For example, even though Cardano continues to report significant growth in its ecosystem, the coin has failed in the past few weeks to cross above $1. Besides, the general weakness in the market appears to have taken its toll on many large-cap coins.

As soon as sentiment starts to turn around, we expect ADA to fully rally. It is likely that a change in investor sentiment may come in the second half of 2022. Even if ADA doesn’t hit $10, the possibility of 10x growth is still high.

Why you must buy Cardano now

The thing about Cardano is that it still has so much to offer. The coin will probably take months to achieve its true potential. 

But if you don’t mind holding it for long, then returns in a year or so could be massive. The $0.4 price right now is probably the cheapest ADA will get.

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Polkadot (DOT) has finally managed to stop its prolonged correction. The price appeared to have settled a bit after bottoming at around $7.35. DOT now has a good opportunity to reverse the downtrend and could rally significantly despite growing uncertainty in the market. Here are some points:

• DOT is testing the $10 which could be significant in any bull run

• It’s the first time the coin has reported gains after 4 days of retreat

• Crossing the $10 could trigger a rally towards $13 or thereabout

Data Source: TradingView 

Polkadot price analysis and prediction

The most important thing for DOT bulls is that the downtrend appears to have slowed. The coin had reported losses in 4 straight sessions, and there were fears it could actually fall below $5 for the first time this year. But it seems the price action started to consolidate at around $7.35. 

Eventually, DOT was able to trigger a run and is now trying to cross above $10. If indeed this happens, we could see the token rally towards $13 or beyond. This will represent an upswing of around $30 from this price. However, despite this bullish outlook, there are still several uncertainties in the market.

For example, we have not seen enough trading volume to suggest DOT is going bullish. It is possible that DOT may in fact get rejected at the $10. This will push it downwards toward its previous bottom price of $7.35. But if bulls are not able to keep the price above $7.35, there will be more downside to come.

How to trade DOT in this setup?

The first entry would be above $10. If DOT is able to cross above this price, then you can buy and exit at $13. 

However, if the price action remains suppressed below $10, then wait for it to bottom at around $7 before you buy. But there is a risk that a drop towards $7 could continue until DOT hits $5.

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After the Terra collapse, increased risk perception could see AVAX outperform SOL.

Key Points:

• Avalanche is a platform blockchain that can handle 4500 transactions per second. While it has a fast-growing ecosystem of Dapps, AVAX’s price has been affected by the correction in the broader crypto market. 

• Solana is one of the most scalable platform blockchains in the market today. While adoption is growing, SOL price has been weighed down by the correction in the broader market. 

• While both Avalanche and Solana will do well long term, AVAX could outperform SOL in the short to medium term. This has a lot to do with SOL’s frequent network outages in 2021 and the risk awareness that Terra’s collapse has triggered amongst investors. 

Avalanche (AVAX)

The decentralized applications space is on a growth trajectory, and launch platforms are growing in demand. Avalanche is one of those that have recorded fast growth in a very short time. While it is only three years old, Avalanche now has one of the largest and fastest-growing ecosystems of Dapps in crypto. This is due to its strong core metrics. They include low fees and high throughput – up to 4500 transactions per second. Despite the fast-growing Dapps ecosystem, Avalanche’s price has taken a nosedive in 2022. This has a lot to do with the bearish nature of the broader cryptocurrency market. 

Solana (SOL)

Like Avalanche, Solana is a launch platform for Dapps and has seen a significant level of adoption in the last 2-years. This is due to its scaling capabilities and super-low fees. Solana can handle up to 50k transactions per second, and its fees go as low as $0.001 per transaction. In 2022, there has been an upsurge in investments in the Solana NFTs ecosystem running into 100s of millions of dollars. 

Which one is a better buy?

Due to the fast-growing nature of their ecosystems, both Avalanche and Solana have strong odds of growth going into the future. Now that their prices are at record lows from their last all-time highs, the chances are that once the broader market makes a comeback, these two could perform well. However, Avalanche is more likely to outperform Solana in the next bull run. 

This has a lot to do with the history of the two networks. Avalanche has been consistently stable since it launched. On the other hand, Solana has suffered several network outages in the recent past that put its reputation at risk. After the recent Terra collapse, the chances are that many investors will be a lot more conscious of the risks associated with the cryptocurrencies they invest in. This could disadvantage SOL over AVAX in the short to medium term. 

Conclusion 

While both AVAX and SOL are good long-term investments, the odds favor AVAX in the medium term. The collapse of Terra LUNA has driven up investor awareness of cryptocurrency risks, and SOL has more perceived risks than AVAX.

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