IOI
A minor crash has hit the price of the big crypto as it battles a crucial support level. The stock is expected to break through this barrier before restarting its upward trend.
This bullish outlook, however, is predicated on BTC’s eventual recovery and subsequent recovery.
The Cardano Layer-2 solution will soon be available
InputOutput (IOHK), the team behind Cardano, announced on September 17 that they were building a Layer-2 solution for it. Recently disclosed information states that off-chain transactions will be settled on the Ouroboros blockchain or main chain. In this way, security is assured.
Further, it explains Hydra.
It permits fees to be configured as low as one or two lovelaces, which is critical to the use of microtransactions and the applications this opens up.
In addition, Hydra features isomorphic state channels to reuse ledger representations, producing a family of off-chain ledger siblings called “Heads.”
Hydra Heads can be equipped with Native Assets, non-fungible tokens (NFTs), and Plutus, allowing system extension.
DeFi will be able to become a reality on the ADA blockchain thanks to the recently implemented Alonzo upgrade. Due to Hydra’s successful launch, the Cardano space is expected to expand exponentially without friction or bottlenecks.
As of the latest update, IOHK has already started implementing Hydra Head basic protocol as a proof-of-concept. The Cardano Summit will begin on September 25 and this integration will be ready by then.
Cardano price at a decisive moment
Cardano price has shed roughly 24% over the past nine days as it retests the $2.188 support floor. Although BTC is crashing violently, ADA seems to be show resilience around the demand barrier mentioned above.
However, considering the uncertain nature of big crypto’s price action, there is a chance Cardano price might dip below $2.188 briefly before recovering above it. Doing so will not impact the bullish outlook for ADA. Instead, it might trigger an uptrend to the immediate resistance level at $2.30. Flipping this barrier into a support floor will pave the way for a retest of the $2.638 ceiling. This run-up from $2.188 to $2.638 would constitute a 20% ascent.
In contrast, the failure to recover Cardano’s price above the $2.188 level indicates an increased pressure on buyers. The rate move to $1.924 might also be catalyzed by it.
This low would invalidate the bullish thesis and suggest a shift in trend favoring the bears if ADA breaks below this level or $1.848.
