Cardano (ADA/USD) suffered from a major crash on December 4, after its price registered an almost 25% dip. Market analysts have now stated that Cardano’s price could be in for a major bullish comeback.
Cardano’s hidden bullish divergence
Analysts who have evaluated Cardano’s price action have identified a hidden bullish divergence. A recent analysis from the “CoinsKid” YouTube channel noted that ADA’s drop to $1.27 was a falling wedge pattern, which is a bullish flag.
ADA has made a slight price recovery with a 3.4% gain during the past 24 hours. The altcoin is currently trading at $1.30, and it shows signs of breaking the resistance at $1.34 and retracing to its previous cycles after a strong bull run.
The falling wedge pattern indicates a strong price action, and ADA could set the next target at $1.47. This will be a 10% uptrend from the current levels. Moreover, the current recession in ADA’s prices shows that the altcoin is approaching its market bottom, and the downtrend could soon reach exhaustion.
Cardano’s scaling solution, Hydra, released
Cardano’s journey towards smart contracts has been marked with interesting developments that aid in the price recovery of the ADA token. The network is working on a layer two scaling solution known as Hydra, and the groundwork for this has already been laid.
The team behind the Hydra upgrade has launched the second pre-release, end-to-end integration of Cardano’s node. The team of developers behind this blockchain has added 3057 new commits on GitHub, which is a notable step towards the launch of Hydra.
Mid-week repo update: #Cardano code forges continue to burn bright 🔥 with 3,057 GitHub commits this week & counting…
To follow the latest code commits, bookmark the excellent https://t.co/Tj4Ebgc65u #Cardano $ADA pic.twitter.com/zshY32fkNZ
— Input Output (@InputOutputHK) December 15, 2021
Launching a layer-2 scaling solution on the Cardano blockchain is the key to its success. Hydra will enable the simultaneous processing of transactions and smart contracts on the Cardano blockchain.
Hydra on Cardano will bring similar results to sharding on the Ethereum blockchain. It will create parallel blockchains, which will boost scalability on the network by boosting speeds.
Besides making the Cardano network scalable, the Cardano development team is also working on a wallet for the altcoin. The wallet will boost the compatibility and ensure that the wallet works with the latest version of the node dubbed v.1.32.1.
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