The Cardano price had a difficult month in October as its price diverged from that of other cryptocurrencies. Its price declined by about 15% in October while currencies like Bitcoin and Ethereum surged to their all-time highs. The total market capitalization of all digital currencies surged to more than $2.6 trillion.
Why ADA lagged in October
Cardano is a blockchain project that was created to help solve some of the biggest challenges across multiple sectors. For example, the network is helping to decentralize the education system in Ethiopia.
At the same time, Cardano’s developers had the goal of becoming the next big challenger to Ethereum. Besides, it offers better features than Ethereum. For example, it was built from ground up using the proof-of-stake (PoS) technology. Its network is also faster and more environmentally friendly than Ethereum.
Cardano made steps to become a viable alternative to Ethereum a few months ago when it launched its Alonzo hard fork. The fork introduced features like smart contracts that make it possible for developers to build applications.
However, there are two main challenges that Cardano and its developers are facing. First, it is uncertain whether Decentralized Applications (DApps) developers will embrace the network. To date, there have been no major Cardano-development applications.
Second, the industry of Ethereum-killers is relatively saturated today. Some of the best-known platforms that have seen success are Binance Smart Chain (BSc), Solana, and Avalanche. Therefore, to succeed, Cardano will need to prove that its technology is relatively better than its competitors.
So, is the Cardano price doomed? Absolutely not. Besides, most cryptocurrency investors rarely look at the fundamentals when investing. For example, today, Shiba Inu, a currency that does nothing is the 9th biggest cryptocurrency in the world. It has a market capitalisation of almost $40 billion.
Therefore, it is too early to rule out Cardano. Besides, it is a relatively well-known blockchain project that is owned by millions of people. As such, all it needs is a spark that will then propel its price sharply higher.
Cardano price prediction
The daily chart shows that the Cardano price has been in a bearish trend in the past few weeks. The coin has dropped by more than 35% from its highest level this year. It has also moved below the 25-day and 50-day moving averages.
Notably, the ADA price has formed a falling wedge pattern that is shown in black. A falling wedge pattern is usually a sign of a bullish break-out.
Now, with the wedge pattern nearing its confluence zone, there is a likelihood that it will rebound in November. If this happens, the coin will likely bounce back to more than $2.5 in November 2021.
