On the main factors due to which the price of Cardano can reach $2.35 in the medium term
“Tech Secret” does not give investment advice, the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.
Cardano is one of the blockchain projects that has stood the test of time. In the midst of the crypto winter of 2018, the asset was under significant pressure from industry participants and investors: it was accused of lack of decentralization and too much influence of the team in the development of the project and the lack of significant progress on the roadmap.
Initially, the project announced rather big plans, but frankly lagged behind in development, yielding not only to Ethereum, but also to a large number of other blockchain platforms. In this regard, the popularity of Cardano for creating dApps was extremely low.
But over the past year, many positive events have occurred: due to forks, the decentralization of the solution has been improved, and smart contracts have been launched as part of the Alonzo fork (September 2021), which made it possible to implement the first SundaeSwap DEX exchange within Cardano.
In addition, in a recent roadmap update, the project indicated the early integration of the ADA combustion mechanism. This will integrate the deflationary mechanism and increase the attractiveness of the token, including as a tool against inflation, along with BTC and ETH. Thus, fundamentally, this project looks investment attractive.
- The essence of the idea is to open a medium-term purchase of the ADA token with a “stop” at $0.73 and a target at $2.35 (100% profit, that is, “X” from current levels, p/l ratio 3:1). I recommend fixing half of the profit at $1.9, and keep the rest to the target.
- The risks of this investment may lie not only in the fall of the total market capitalization, but also in the IT problems that the protocol may have. Dapps currently running on it, such as DEX exchanges, can become the target of hacker attacks if young smart contracts are not sufficiently audited and technically secure. Against this background, the price of ADA may decrease, which will entail losses on the transaction.