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The cryptocurrency market is currently struggling due to unfavorable macroeconomic conditions. Cardano, in particular, has been one of the most volatile cryptocurrencies in this crypto crisis. Cardano (ADA) has fallen close to 15% in the last 7 days and 5% in the last day. It is currently trading at $0.3639.
However, Michael van de Poppe, the CEO of Eight Global and a major crypto analyst, believes that Cardano is set for a price surge. He reveals that Cardano finally hit the critical support level when Cardano prices started rallying in 2021. He believes that the current price is a very sound position for investors to go long on $ADA.
Why Cardano (ADA) Is Struggling?
The entire cryptocurrency market is currently struggling due to the various negative pressures in the global economy. The latest Consumer Price Index reveals worse-than-expected inflation levels in the economy. The Federal Reserve was already taking a hawkish stance before yesterday’s CPI data. It was engaging in quantitative tightening and interest rate hikes. The bad inflation data will almost certainly bolster the Fed’s restrictive stance.
The recently revealed Producer Price Index also highlighted unsustainable inflation in the economy. The Fed considers curbing inflation from preventing it to be entrenched in normalcy as its topmost priority.
The possibility of recession and stagflation is also hurting the outlook of the crypto market.
However, the proponents of Cardano believe that cryptocurrency is fundamentally strong. Yevhen Karpenko of DefiYield postulated the factors which make Cardano strong in the long run. He believes that the Ouroboros consensus mechanism makes Cardano more decentralized than other cryptocurrencies. He reveals that Cardano has more than 1500 validator pools.
Moreover, 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 between 15 and 45 while Bitcoin has a TPS of 5.
Key Events To Watch
Market participant are eyeing the FOMC meeting on the 2nd of November with great interest. The Federal Reserve will release its decision on the next interest rate hike and will have a huge impact on any price movement.
