ADA could be preparing for a breakout, with the recent addition of Tether (USDT) and USD Coin (USDC) through WingRiders decentralized exchange on its blockchain. These stablecoins are intended to provide stability to the market and could result in higher on-chain activity as well as increased demand for ADA.
Charles Hoskinson, the Cardano founder, made the announcement on Twitter, stating that stablecoins are coming to the proof-of-stake blockchain.
“Wingriders is one of the most exciting DEXes to launch on Cardano and now they are bringing stablecoins!,” Hoskinson said.
Wingriders is one of the most exciting DEXes to launch on Cardano and now they are bringing stablecoins! https://t.co/Rpsl9znhyl
— Charles Hoskinson (@IOHK_Charles) April 12, 2022
The announcement could trigger a rapid increase in the number of investors on the Cardano network. As we all know, cryptocurrencies are highly volatile. Prices can go up and down very quickly, and this often happens without any clear reason. This can be very stressful for investors, as they never know when their assets might lose value.
However, there are some cryptocurrencies which are designed to function as a safe haven against volatility. USDT and USDC are two examples of this. These coins are pegged to the US dollar, meaning that their value will always remain stable. This makes them ideal for investors who want to protect their assets from sudden price drops.
Cardano price ready for a major move higher
ADA’s one year chart reveals that after hitting a high of $2.96 in early Sept. 2021, the coin entered into a downtrend and nosedived 73% to a March 2022 low of $0.79. Since then, Cardano’s native token has pulled back and seems to be working on an uptrend, with a decent base off of the $0.90 level.
If the coin were to rally from this point and break above the $1.00 barrier, that would be a sign of reversal and should be considered as a short-term bullish signal. A 28% upswing from current levels into the $1.20 resistance level marks the beginning of the breakout area and the first one to watch for a failure.
In other words, a consolidation above the $1.00 zone and a big break above the $1.20 level, as long as this area holds $1.50 – $1.60 range is in play.
In conclusion, Cardano is one of the most promising cryptocurrencies in terms of technology and long-term prospects. The addition of two new stablecoins could trigger a breakout for its price, as investors become more confident in its ability to provide stability and security. If you’re looking for a solid long term investment with a bright future, Cardano should definitely be on your radar.
Price Action
ADA is trading at $0.946 at press time with its market cap rising to $43 billion.
Disclaimer: The information provided is not trading advice
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