Cardano ‘s price surge continued into the night as the FOMO trend persisted. The ADA token rose to an all-time high of $3.02 and its market cap to more than $95 billion.
Challenges for Cardano
Cardano is a relatively controversial proof-of-stake network developed by Charles Hoskinson. The network aims to harness the power of blockchain to find solutions to some of the biggest challenges in key industries such as education, retail, and finance.
Cardano is currently running one of the largest blockchain projects in the world. A few months ago, the developers reached an agreement with the Ethiopian Ministry of Education to decentralize the sector. Currently, the project is being implemented and an update is expected to be released soon.
Cardano is controversial because unlike other popular altcoins like Ethereum and Polkadot, little is known about the projects being implemented using the network.
That could soon change as developers are moving forward with the implementation of the Goguen phase. This is a phase where the network will introduce the concept of smart contracts. In this way, Cardano will become a similar blockchain project to Ethereum and Solana. With its help, developers can create decentralized applications.
Still, the platform faces major challenges. For one, the DAPP development industry is maturing and many developers have already chosen their preferred platforms. Today, most DeFi projects have been built on Ethereum. In fact, the total value of completed transactions has grown to more than $90 billion.
At the same time, Cardano has to keep up with other fast-rising Ethereum competitors like Solana, Polkadot, and Avalanche. Nevertheless, there is a possibility that the price of the coin will continue to rise as its momentum coins.
Cardano Price Forecast
On the daily chart, we can see that the ADA price formed a strong support at $0.955 in May, June and July. Since then, the price of the tokenens by 212% and became one of the best performing coins in the world. Along the way, Cardano has become the third largest cryptocurrency after Bitcoin and Ethereum.
The price has moved above the 25-day and 50-day moving averages. Most importantly, it has risen above the key resistance at $2.4760, which was the previous all-time high. The coin has also risen above the Ichimoku Cloud, while the Relative Strength Index (RSI) has continued to rise. So, the path of least resistance is to the upside, with the next important level at $3.50 to watch.