The Cardano (ADA) network, a top layer one (L1) blockchain with around $350 million locked by its web3 protocols, is poised to invalidate the 2022/2023 bear market. After the 70% breakout in December, Cardano bulls took over, supported by the altcoin’s ongoing rally.
Additionally, the mid-cap altcoin, with a fully diluted valuation of around $22 billion and an average 24-hour trading volume of around $738 million, has attracted notable attention from Web3 developers and investors in digital assets.
Factors slowing down the mass adoption of Cardano
The Cardano network is supported by an engaged community of developers and investors. However, the smart contract-focused network faces significant competition from other layer one (L1) blockchains like Ethereum, Solana, and Binance Smart Chain (BSC), among others. In addition to the high competition in the cryptocurrency market, the Cardano network has been slow to ensure that its web3 protocols are seamlessly interconnected with other L1 chains to further improve its liquidity.
ADA Price Analysis
According to a popular crypto analyst, Ali Martinez, ADA price is preparing to enter its second leg of the bull season after recording a strong breakout during the fourth quarter of 2023. The crypto analyst argued that ADA price could easily reach 93 cents if the bulls defend the support zone between 46 cents and 49 cents in the coming days. In the short term, ADA price targets 82 cents, according to the weekly autofin retracement, after breaking through the resistance level around 69 cents.