Cardano Price Forecast: Hydra Scaling Solution Gains Attention Amid Ethereum Gas Fee Surge – Is It Time to Buy?
Cardano (ADA) continues to hold above its 200-Day Moving Average just above $0.3500, but sell pressure appears to be building.
Nonetheless, price forecasts are becoming more downbeat.
The world’s seventh largest cryptocurrency by market capitalization was last trading around $0.3550, down close to 4.0% on the day as the US dollar picks up despite fresh US data showing easing price pressures and a gradually weakening labour market, thus boosting expectations that the Fed’s interest rate hiking cycle is done.
ADA, the cryptocurrency that powers Cardano’s smart-contract-enabled and highly decentralized blockchain, is looking precarious.
If the cryptocurrency does lose its grip on the 200DMA, it risks falling below un upwards trendline that has been in play since late December 2022.
That would open the door to a retest of March lows under $0.30 into play.
Equally, if ADA did find strong support at current levels, a strong rebound from the 200DMA would be taken as a bullish medium-term indicator and a retest of recent highs in the $0.46 area would be likely in the months ahead.
But with the Bitcoin (BTC) price looking vulnerable to a technicals-driven sell-off from current levels in the low $27,000s to the $25,000s, risks seem tiled to the downside for Cardano, given Bitcoin usually leads the broader crypto market.
Cardano’s recent downside comes despite a major recent upgrade to its ecosystem.
Developers recently deployed Hydra, a layer-2 scaling solution, to the Cardano mainnet.
According to Cardano’s website, Hydra aims to “increase transaction speed through low latency and high throughput also offering minimized transaction cost”.
Observers hailed the upgrade as a vital step forward, as it will allow the Cardano ecosystem to support
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