The cryptocurrency market is currently struggling due to adverse macroeconomic conditions. Cardano in particular has been one of the most volatile cryptocurrencies in this crypto crisis. Cardano (ADA) is down nearly 15% in the past 7 days and 5% in the past day. It is currently trading at $0.3639.

However, Michael van de Poppe, the CEO of Eight Global and a major crypto analyst, believes Cardano is in for a price hike. He reveals that Cardano finally hit the critical support level when Cardano prices started to rise in 2021. He believes the current price is a very good position for investors to go long on $ADA.

Why is Cardano (ADA) struggling?

The entire cryptocurrency market is currently struggling due to the various negative pressures in the global economy. The most recent consumer price index shows worse-than-expected inflation in the economy. The Federal Reserve already took an aggressive stance ahead of yesterday’s CPI data. It engaged in quantitative tightening and rate hikes. The poor inflation data will almost certainly reinforce the Fed’s restrictive stance.

The recently unveiled Producer Price Index also pointed to unsustainable inflation in the economy. The Fed sees reducing inflation as its top priority to avoid anchoring it into normality.

The possibility of recession and stagflation is also hurting the crypto market’s prospects.

However, Cardano’s proponents believe that cryptocurrency is fundamentally strong. Yevhen Karpenko of DefiYield postulated the factors that cause Cardano strong long-term. He believes that the Ouroboros consensus mechanism makes Cardano more decentralized than other cryptocurrencies. He reveals that Cardano has over 1500 validator pools.

In addition, Cardano also has a higher transaction speed compared to other cryptocurrencies. It can currently process more than 250 transactions per second. On the other hand, Ethereum has a TPS of between 15 and 45, while Bitcoin has a TPS of 5.

Key events to watch

Market participants look forward to the FOMC meeting on November 2 with great interest. The Federal Reserve will announce its decision on the next rate hike and will have a huge impact on any price movement.

Nidhish is a technology enthusiast whose goal is to find elegant technical solutions to solve some of society’s biggest problems. He is a big proponent of decentralization and wants to work on the mainstream adoption of Blockchain. He also enjoys almost all popular sports and likes to talk about a wide variety of topics.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.

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