Cardano (ADA) is trying to recoup losses suffered over the past month during a massive drawdown. If investors provide adequate support for ADA, the asset could break out of the downward channel and begin a new rally.
Cardano has High Potential to Grow
Cardano price is in a downtrend and previous recovery attempts have failed. This is largely due to broader market trends, which have been relatively bearish.
However, based on the Mean Coin Age metric, which calculates the average age of all coins in circulation, Cardano holder confidence is once again gaining momentum. The chart below shows that during the first quarter the rate rose only 6.6%, while in just the last two weeks the MCA rose 2.4%.
Additionally, about 50% of the circulating supply of ADA is in the red, meaning there is significant room for growth.
ADA price forecast: breakout at $0.66
At the time of writing, Cardano is trading at $0.498. The altcoin has been moving in a downward channel for more than a month, an exit from which usually signals a potential trend reversal. A retest of the upper line of the pattern and its potential breakout will mark a breakout, leading to a rise to $0.66.
However, if the channel support is broken and the price of ADA falls below $0.40, the bullish thesis will be invalidated.
Cardano presents a robust, spam-free network
Cardano has a very robust and spam-resistant network, and it can handle more than 25 million transactions with $10 million in fees that it accumulated for the past year. One of the most notable features of ADA is its much higher throughput of up to 1,000 transactions per minute, which makes it a spam-proof platform in comparison to Solana.
This anti-spam mechanism therefore aids Cardano to be one of the most decentralized networks with the spam transaction fee being so high that it prevents the repeated spam transactions. The most obvious result is the fact that experts consider ADA now as a perfect hub for high-transaction volume projects like decentralized exchange (DEX) trading, gaming platforms, NFT markets and so on.
On the other hand, ADA is growing a decentralized ecosystem which is made up of a number of applications from lending platforms, data metrics tools, innovative token types, and blockchain-based social networks. Even though the whole market is crashing, Cardano has managed to maintain its stability. The Cardano platform continues to evolve and has attracted many projects and users to its platform.
