Cardano Price Forecast: ADA’s bullish outlook wobbles despite launch of first Bitcoin DeFi protocol

출처 Fxstreet
  • Cardano’s recent uptrend stalls under $0.70, underperforming major digital assets such as Bitcoin and Ethereum.
  • Cardano launched Cardinal, its first DeFi protocol, aimed at Bitcoin users.
  • The Cardinal Protocol stands out for its compatibility with NFT use cases, wrapped BTC and instant value redemption.

Cardano’s (ADA) uptrend has stalled below $0.70 after staging a recovery from support at $0.62, seemingly underperforming other major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH). The smart contracts token, valued at approximately $25 billion, is currently trading at around $0.68 at the time of writing, down over 1% on Tuesday.

The unsteady uptrend comes a day after Charles Hoskinson, the founder of the project, announced the launch of the Cardinal network, paving the way for the first Bitcoin Decentralized Finance (DeFi) protocol designed specifically for Bitcoin users.

Cardano introduces the Cardinal protocol

The newly launched Cardinal Protocol is designed to mint wrapped BTC Unspent Transaction Outputs (UTxOs) onto the Cardano blockchain by utilizing Bitcoin Ordinals as Cardano nonfungible tokens (NFTs).

https://twitter.com/rom1_pellerin/status/1932116167495471148

According to a GitHub post, the wrapped UTxOs ensure full transferability, mirroring assets native to the Cardano network. At the same time, it can preserve a one-to-one peg with the original Bitcoin asset. The protocol enhances the usability of wrapped UTxOs by allowing on-demand burning of the NFT tokens, thereby releasing the corresponding BTC asset back onto its native blockchain.

The Cardinal Protocol distinguishes itself from other “trust-minimized Bitcoin bridges” by operating independently of external liquidity providers. However, Cardano developers believe their integration to be feasible. 

“Instead, a novel transfer-of-ownership mechanism is implemented, directly allocating Bitcoin assets to their verifiable owners,” Cardano explained on GitHub.

To ensure security and efficiency, the protocol has integrated multi-signatures and batch verification in both blockchain environments. Bitcoin’s MUSIG2 has been employed to enable key aggregation and multisignatures. With this, users can “collaboratively produce a single aggregated public key and corresponding aggregated signature,” the GitHub post added.

The second blockchain environment utilizes Cardano’s Mithril protocol for aggregating stake certificates. Meanwhile, Bitcoin Ordinals provide a convention for the unique identification, tracking and transferring of NFT assets on the Bitcoin blockchain.

The Cardinal Protocol is designed for Bitcoin users who desire to expand their DeFi interactions to other networks without compromising decentralization and the security of their assets. 

Such users include BTC holders and Ordinals who prefer to leverage smart contracts for their efficiency, low transaction costs and decentralized applications (dApps).

Cardano’s price recovered along with other major digital assets on Thursday as sentiment improved in the broader cryptocurrency market. However, the uptrend stalling under $0.70 reflects trader exhaustion and potential profit-taking.

Technical outlook: Cardano’s uptrend falters 

Cardano’s uptrend has encountered a major bottleneck at around $0.70, slightly below a confluence of resistance established by the 50-day Exponential Moving Average (EMA), the 100-day EMA, and the 200-day EMA at around $0.71.

The Relative Strength Index (RSI) sideways movement at the 50 midline backs the lack of conviction among traders. Traders may want to monitor the RSI’s uptrend continuation toward the overbought region to ascertain the bullish outlook from now on.

ADA/USDT daily chart 

The Moving Average Convergence Divergence (MACD) indicator could confirm a buy signal in upcoming sessions, reinforcing the bullish outlook and increasing the probability of a breakout toward the supply-rich area at $1.00.

Cryptocurrency prices FAQs

Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.

A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.

Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.

Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.

면책 조항: 정보 제공 목적으로만 사용됩니다. 과거 성과가 미래 결과를 보장하지 않습니다.
placeholder
암호화폐 시장, 라이트코인·솔라나·XRP·도지코인·카르다노 현물 ETF 마감 앞두고 안정세월요일 보도 시점 기준, 전체 암호화폐 시가총액은 3.8조 달러로 전일(일요일) +2.29% 상승 이후 보합권을 유지하고 있다.
저자  FXStreet
11 시간 전
월요일 보도 시점 기준, 전체 암호화폐 시가총액은 3.8조 달러로 전일(일요일) +2.29% 상승 이후 보합권을 유지하고 있다.
placeholder
금 가격 전망: 미 정부 셧다운 가능성 속 XAU/USD, 3,820달러로 랠리월요일 유럽장에 3,819달러의 사상 최고가를 경신한 뒤, 금은 3,800달러 상단에서 거래 중이다. 귀금속 전반이 강세를 보이고 달러가 약세로 돌아서며, 투자자들은 수요일 예정된 미 연방정부 셧다운 가능성에 대비하고 있다.
저자  FXStreet
11 시간 전
월요일 유럽장에 3,819달러의 사상 최고가를 경신한 뒤, 금은 3,800달러 상단에서 거래 중이다. 귀금속 전반이 강세를 보이고 달러가 약세로 돌아서며, 투자자들은 수요일 예정된 미 연방정부 셧다운 가능성에 대비하고 있다.
placeholder
Silver Price Forecast: 미 정부 셧다운 우려 속 XAG/USD, 47.00달러로 랠리 지속월요일, 은(XAG/USD)은 상승세를 이어가고 있다.
저자  FXStreet
11 시간 전
월요일, 은(XAG/USD)은 상승세를 이어가고 있다.
placeholder
솔라나 가격 전망: 스폿 솔라나 ETF S-1 수정 제출에 심리 개선… SOL, $210 회복Solana(SOL)는 지난주 핵심 지지에서 반등한 뒤 월요일 $210 상단에서 거래 중이다. 이번 회복은 주요 자산운용사들의 스폿 솔라나 ETF S-1 수정 제출이 연달아 나오면서 탄력을 받았다.
저자  FXStreet
13 시간 전
Solana(SOL)는 지난주 핵심 지지에서 반등한 뒤 월요일 $210 상단에서 거래 중이다. 이번 회복은 주요 자산운용사들의 스폿 솔라나 ETF S-1 수정 제출이 연달아 나오면서 탄력을 받았다.
placeholder
상위 3개 가격 전망: 비트코인·이더리움·리플 – 핵심 지지선 방어 속 BTC·ETH·XRP 반등 시도이번 주 초 비트코인(BTC), 이더리움(ETH), 리플(XRP) 은 최근 조정 이후 각각 주요 지지선 위에서 버티며 안정화 조짐을 보이고 있다.
저자  FXStreet
13 시간 전
이번 주 초 비트코인(BTC), 이더리움(ETH), 리플(XRP) 은 최근 조정 이후 각각 주요 지지선 위에서 버티며 안정화 조짐을 보이고 있다.
goTop
quote