Cardano Forms a Bullish Flag as it Prepares For Hydra’s Launch

Cardano Forms a Bullish Flag as it Prepares For Hydra's Launch

Cardano (ADA / USD) suffered a major crash on December 4th after its price fell nearly 25%. Market analysts are now saying that Cardano’s price could go up sharply.

Cardano’s Create a Bullish Divergence

Analysts gauging Cardano price action have discovered a hidden bullish divergence. A recent analysis on YouTube channel CoinsKid indicated that the ADA’s decline to $1.27 is a downward wedge shape depicting a bullish flag.

Are you looking for quick news, hot tips and market analysis? Sign up now for the Invezz newsletter.

ADAUSDT 4H Chart. Source: Tradingview

ADA has rallied slightly over the past 24 hours at a price of 3.4%. The altcoin is currently trading at $1.24, showing signs of breaking the $1.34 resistance level and falling back into the previous cycle after a strong bull market.

The bearish wedge pattern indicates strong price action and ADA may set the next target at $1.47. This will be an uptrend of 10% from current levels. Additionally, ADA’s recent drop in price suggests that the altcoin is nearing the bottom of its market and the downtrend may soon be exhausted.

Cardano’s Scaling Solution Hydra Released

Cardano’s Smart Contract Journey marks interesting developments that have helped the price of ADA tokens rebound. The network is working on a second-layer scaling solution called Hydra, and the foundation for it has been laid.

The team behind the Hydra upgrade has released the second pre-end-to-end integration of the Cardano node. The development team behind the blockchain added 3,057 new commits on GitHub, which is an important step towards Hydra.

Introducing a Layer 2 scaling solution on the Cardano blockchain is the key to success. Hydra will support the simultaneous processing of transactions and smart contracts on the Cardano blockchain.

Hydra on Cardano will bring results similar to sharding on the Ethereum blockchain. A parallel blockchain is created which increases the scalability of the network by increasing the speed.

The Cardano development team not only makes the Cardano network scalable but also develops wallets for Altcoins. The wallet improves compatibility and ensures that the wallet is used with the latest version of the node called v.1.32.1.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

Share this :