Cardano introduces Layer-2 solution Hydra, as ADA price looks to rally 25% – FXStreet

Akash Girimath Akash Girimath

Cardano price is grappling with a crucial support floor on the daily time frame as the big crypto experienced a minor crash. Investors can expect ADA to slice through this barrier before restarting its uptrend.
However, the bullish outlook is based on the assumption that BTC recovers and proceeds to go higher.
InputOutput (IOHK), the development team behind Cardano, announced Hydra on September 17, a Layer-2 solution for Cardano. Based on the recent revelations, the Ouroboros proof-of-stake layer or the main chain will be where transactions settle but are processed off-chain. Doing so will retain the security guarantee.
The blog further details that Hydra,
allows Tx fees and minimum UTXO Value to be configured as low as 1 or 2 lovelaces, critical to microtransactions and the use cases these unlock.
It also explains that Hydra will introduce isomorphic state channels to reuse the same ledger representation, yielding uniform, off-chain ledger siblings called “Heads.”
This feature allows native assets, non-fungible tokens (NFTs) and Plutus to be available inside each Hydra Head, permitting the extension of the system.
The recent implementation of the Alonzo upgrade will allow the DeFi ecosystem to birth on the ADA blockchain. With the successful launch of Hydra, the burgeoning space on Cardano will have no friction or bottleneck and can be expected to grow exponentially.
According to the latest update, IOHK has already implemented the basic Hydra Head protocol as a proof-of-concept in a developer preview. Moreover, this integration will be ready during the upcoming Cardano Summit, starting on September 25.
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.
ADA/USDT 1-day chart
ADA/USDT 1-day chart
On the other hand, if Cardano price fails to recover above the $2.188 foothold, it will indicate a weakness among buyers and increased selling pressure. Moreover, it might also catalyze a move to $1.924.
If ADA produces a lower low below this barrier or $1.848, it will invalidate the bullish thesis and suggest a shift in trend favoring the bears

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.
Former BitMEX CEO Arthur Hayes addressed the liquidity crunch that has hit the crypto market. Hayes believes Bitcoin and Ethereum prices could bleed further and identified altcoins that have bullish potential in the bear market. 
XRP price has found support above key psychological level $0.30 after some positive developments in the Ripple vs SEC court saga.
TRON price seems to be consolidating after rallying exponentially since March 2020. This massive coiling up at the top seems to have formed a bearish pattern that indicates a correction is due for TRX.
BTC is at a point in its journey through the bear market where investors are split into camps that are expecting a relief rally, a continuation of the crash and a full-blown bull rally. Interestingly, none of the aforementioned theses is wrong per se.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.