Cardano Turns Bullish: How ADA Responded to Hydra FUD Dismissal and USDM Stablecoin Launch
Cardano founder clears the air around Hydra, turning sentiment to bullish. Meanwhile ADA is in a tough spot.
Key Takeaways
- Hoskinson debunks Hydra abandonment rumors, ensures continuous development.
- USDM launch marks Cardano’s first fiat-backed stablecoin.
- ADA’s current trend suggests potential rise, facing critical resistance levels
Recently, there were rumors about Cardano abandoning its layer-2 scaling solution Hydra. The blockchain’s founder, Charles Hoskinson, took to Twitter to debunk the allegations . He underscored the continuous development work, including bug fixes, optimizations, and protocol versioning that, he said, bolstered Hydra’s effectiveness and reliability as Cardano’s scaling solution.
In addition, Mehen Finance has launched USDM, a significant milestone in its pursuit of wider acceptance. As the first non-algorithmic, fiat-backed stablecoin on the Cardano blockchain, USDM is fully supported by dollars and offers a direct 1:1 conversion rate. This initiative should improve the ecosystem’s security, scalability, and environmental sustainability for decentralized apps.
These new developments have bulged Cardano’s sentiment, but is it enough to bolster its falling price?
Cardano (ADA) Price Analysis
On October 19, Cardano’s price saw a notable surge, climbing from support of $0.23 to nearly $0.70 by December 13 of the last year. After reaching this peak, the price began to fall, eventually retracing back to a previous resistance level. By January 22, Cardano’s had dipped to $0.45, aligning with its peak on April 14, 2023.
This low in January marked the beginning of the current upward trend. Cardano reached a new high, surpassing December’s peak, and should to climb further. Assuming the rise from October 19 initiated a broader five-wave pattern, the present upswing represents the third wave.
This wave should reach a 1.618 Fibonacci extension at approximately $1.10, near a key resistance level. Following a brief pullback for its fourth wave, Cardano could well surpass this barrier and commence its final push – the fifth wave.
From the January 24 low, we saw the formation of an ascending channel whose support is currently being interacted with at $0.65. If ADA finds support here, further upside movement to $1 and beyond could happen.
However, if we see a breakout to the downside, ADA could retrace to its previous horizontal support above $0.40.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
Cardano Hydra Layer Two Getting ‘Great Engagement’ as Charles Hoskinson Refutes the FUD
