Cardano Price Rollercoaster Has Investors Scrambling
Cardano price watchers are on high alert as ADA has been on an epic ride over the last seven days. Starting on August 31, the Cardano price in dollars started a bullish trend at $0.090. By September 2 it had broached the $0.108 mark, which was already higher than it had been over the last two months. With a strong tailwind, those invested in the project were expecting to see the price of Cardano move ever closer to the magical $1 point.
However, almost as quickly as it went up, the vale of ADA coins dropped. Assessing the Cardano price live on September 6, a 14.66% overnight fall has taken the coin back down to $0.084. Although the current Cardano price is averaging higher than it’s been for much of the summer, the volatility does call into question the overall prospects. Nevertheless, the recent spike has been fueled by a number of interesting innovations.
A Positive Deal with Little Substance
After announcing that the digital currency had entered into an agreement with the Ethiopian government, Cardano price charts started to move in a positive direction in May. Although the current deal is more research than development based, it does give Cardano an opening in an as yet untapped market. However, that doesn’t have the same weight as the news released by Dash in August. With the Venezuelan government releasing a new currency in a bid to stop hyperinflation, tech savvy residents have turned to DASH coins. As people have looked for a stable currency to replace their cash, Dash now says that Venezuela is its second most active market ahead of Russia and China.
However, despite DASH coin offering some practical utility in South America, its price hasn’t skyrocketed. When you compare this to Cardano’s announcement, it’s easy to see why traders have flipflopped. Yes, finding a way into a new market it a sign of progress. However, the deal doesn’t really have any substance. Therefore, while it might be good enough to cause a brief spike in the price of Cardano, it’s not enough to keep things surging forward.
Beware of ADA Price Swings
Despite the recent rollercoaster ride, there are those that believe Cardano is the crypto of the future. Citing its scientific basis, supporters of the project believe the Marlowe programming language makes Cardano’s smart contracts a better alternative to Ethereum’s. The Weiss Cryptocurrency Rating has been hot on the ADA price for much of 2018 and it’s largely due to Cardano’s improvements and Ethereum’s stagnation. On top of this, the Cardano wallet backend is close to being released, which is another sign of positive progress.
There’s no doubt Cardano (ADA) is moving in the right direction, but investors should be wary of wild swings. Seeing the price of ADA surge caused a bout of hysteria that wasn’t necessarily warranted. Indeed, the subsequent aftershock has shown that it’s important not to get ahead of ourselves. Although the coin is trading with slightly more strength than it was, we’re not witnessing a Cardano revolution – yet.