The Cardano price is attempting to have a breakout as the rest of the cryptocurrency industry rebounds. The ADA price is trading at $2.30, which is about 10% above the lowest level this week. The rally has brought its total market capitalization to more than $74 billion.
ADA has lagged
Cardano is one of the biggest blockchain projects in the world. Its token has the fourth biggest market capitalization after Bitcoin, Ethereum, and Binance.
Cardano was built by Charles Hoskinson, a co-founder of Ethereum, which explains why it has grown that fast. Analysts view it as a third-generation project that could revolutionize the blockchain industry.
Cardano’s development is made up of five key phases. The first phase was known as Byron and was the foundation of the platform. It was followed by Shelley, where the ecosystem got decentralized.
The third phase was Goguen, which recently introduced the concept of smart contracts. Analysts believe that this is the most important phase of the development. For one, it will need the work and embrace of developers to build on the ecosystem.
A good example of this is in the emergence of smartphones. Earlier on, Microsoft decided to launch its smartphones. The key challenge for Windows phones is that there were no major developers in the ecosystem. As a result, Microsoft was forced to abandon its smartphone dreams.
Therefore, Cardano will need developers to shift to its platform. This could prove tough since most of them have chosen alternative platforms like Ethereum and Solana. Analysts believe that this is the main reason why the Cardano price has lagged its peers. While Bitcoin has risen to an all-time high Cardano is about 28% below its highest level.
The fourth and fifth stages of Cardano’s development will be Basho and Voltaire. The two stages will be about scaling and governance.
Cardano price prediction
The daily chart shows that the ADA price has been in a tight range recently. This performance has seen it form a triangle pattern that is shown in black. It is also along the 25-day and 50-day moving averages and the 38.2% Fibonacci retracement level. The MACD remains below the neutral level.
Therefore, while the Cardano price has remained resilient for now, it is not out of the woods yet. As such, a bullish breakout will be validated if the price manages to move above the key resistance level at $0.25.
