Cardano price has moved sideways in the past few weeks as cryptocurrencies remained in a consolidation phase. ADA was trading at $0.3610, which was about 10% above the lowest level this month. It’s market cap has moved to about $12 billion, which is lower than its all-time high of over $90 billion.
Is Cardano a good buy?
Cardano price has been in a strong bearish trend in the past few months as concerns about the ecosystem remains. This decline is mostly in line with that of other cryptocurrencies like Ethereum, Bitcoin, and Solana.
Another concern is that Cardano’s ecosystem is slowing down. For example, the total value locked (TVL) in Cardano’s ecosystem has crashed from more than $350 million to about $82 million.
The biggest applications in Cardano’s ecosystem are MinSwap, WingRiders, Meld, SundaeSwap, and MuesliSwap among others. MinSwap has a TVL of more than $32.7 million and has a 39.3% dominance. Wingriders has a TVL of over $12.46 million.
The only positive thing in Cardano is its performance in the Non-Fungible Token (NFT) industry. Data by OpenCFT shows that the volume of NFTs has risen by more than 117% in the past 30 days to A44.18 million.
The total number of trades has risen to over 158k while the number of NFTs sold in the past 30 days has risen by more than 51%. Still, this volume is significantly lower than that of other chains like Ethereum, Tezos, and Solana.
Meanwhile, ADA price has been in a strong bearish trend because of the actions by the Federal Reserve. The bank has hiked interest rates by 300 basis points and analysts expect that the bank will hike by 125 basis points before the year ends.
Cardano price prediction
The hourly chart shows that the ADA price has been in a tight range in the past few days. It was trading at $0.36 on Tuesday, which was higher than last week’s low of $0.330. Along the way, the coin has formed an inverted head and shoulders (H&S) pattern. The shoulders of the pattern is at $0.3657.
The coin has moved slightly above the 25-day moving average while the Relative Strength Index (RSI) has formed a triangle pattern. Therefore, the coin will likely have a bullish breakout as buyers target the next key resistance level at $0.3800.