The ADA price has bounced back in the past few hours as investors downplay the risks posed by the new variant to the economy. Cardano is trading at $1.600, which is about 12% above the lowest level last week. Still, this price is about 33% below its highest level this month.
Is Cardano a good investment?
Cardano stands out among all cryptocurrencies that I am concerned about. Besides, Cardano has one of the most vocal founders in the industry. It is also one of the leading coins with a market cap of more than $51 billion. At its peak, the coin was valued at more than $90 billion.
There are several reasons why I think that ADA is not a good investment. First, five years after it was launched, it is relatively difficult to see what Cardano does.
Developers point to the fact that Cardano’s ecosystem did not have smart contract capabilities. This changed recently when the Alonzo hard forkhappened.
Still, a closer look at many platforms that track DAPPs shows no meaningful applications that have been built using Cardano. Maybe there are but the problem is that we simply can’t see them.
Also, since Cardano was launched in 2016, it is hard to see why it took about five years for the developers to launch these smart contracts. Younger platforms like Binance Smart Chain, Solana, Kadena, and Avalanche have all passed it.
Another reason why I think that Cardano is not a good investment is that competition is rising. Today, most developers are using Ethereum and other Ethereum-killers to build apps. This means that Cardano has a tough road ahead.
To be clear. There is still a possibility that ADA price will bounce back since the platform has a lot of fans. Also, we have seen many cryptocurrencies that do nothing like Shiba Inu and Dogelon Mars.
ADA price prediction
The daily chart shows that the Cardano price has been in an overall bearish trend in the past few weeks. This trend has seen the coin crash to the 78.6% Fibonacci retracement level. It has also moved below the 25-day and 50-day moving averages and the key support at $1.8975. Therefore, I suspect that the coin will resume the bearish trend as bears target the key support at $1.