Cardano is in a correction, but fundamentals are getting better

• Cardano has been in a correction after the February rally ended.

• Cardano’s core principles are improving as three upgrades have been made to Cardano in order to make it more suitable for Dapps.

• One of the upgrades recently implemented triggered a 12% price rally.

Cardano (ADA) is one of the biggest platform blockchains by market capitalization. Although it is still a work in progress, Cardano’s core metrics have been stronger than many of its rivals.

Security is one of the key factors that makes Cardano stand apart. The first Provably Secure Proof-of-Stake algorithm, Cardano’s Ouroboros Proof-of-Stake algorithm, is now available. This is important because financial applications are moving to blockchains. Unsafe blockchains could prove disastrous. This is why Ethereum continues its dominance in the DeFi market, despite obvious costs and scaling issues.

While Cardano has yet to be widely adopted, the signs are encouraging. Cardano is getting several big projects, including the Metaverse project. Besides, the Cardano team has announced several significant updates that could help propel Cardano forward in 2022.

Cardano technical updates could trigger a price rally

The IOHK had scheduled three major updates for 2022, which have already been effected. It has also introduced light wallets and a Dapp Store. Cardano’s goal is to run Cardano more efficiently, now that smart contracts have been introduced.

The announcement saw ADA shoot up by over 12%. Investors expect Cardano to run even more efficiently as additional updates are made. Side chains will be introduced to improve scaling and help with synchronization.

Cardano trading in a bearish channel

Source: TradingView

Cardano trades in a bearish channel, even though volumes are low. In the past 24-hours, Cardano has broken through the 100-day moving average at $0. 9271, and the selloff is accelerating.

If Cardano breaches $0. 90, prices below $0. 85 could be a reality in the short term. On the other hand, if there is a reversal and Cardano pushes through the 50-day moving average at $0. 9495, it could be a good signal for prices above $1 in the near term.

Summary

Cardano has three major upgrades planned to make it more appealing to Dapps developers. Cardano, just like the rest, is in a minor correction following a rally in February.