The cryptocurrency market is currently struggling owing to poor macroeconomic factors.

In this crypto crisis, Cardano has been one of the most volatile cryptocurrencies. Cardano (ADA) has dropped about 15% in the last seven days and 5% in the last 24 hours. It is currently trading at $0.3663.

However, Michael van de Poppe, the CEO of Eight Global and a prominent crypto analyst, believes that Cardano's price will skyrocket. He says that Cardano eventually reached the critical support level when prices began to rise in 2021. He believes that the current price is an excellent opportunity for investors to go long on ADA.

Why ADA Is Struggling?

The entire cryptocurrency industry is now struggling as a result of the global economy's various negative pressures. The latest Consumer Price Index shows that the economy is experiencing higher-than-expected inflation. Before yesterday's CPI report, the Federal Reserve had already taken a hawkish stance. It was implementing quantitative tightening and raising interest rates. The Fed's restrictive approach will almost definitely be bolstered by the poor inflation numbers.

The recently released Producer Price Index also demonstrated that the economy is experiencing unsustainable inflation. The Fed views avoiding inflation from becoming entrenched in normality to be its top objective.

The possibility of a recession and stagflation is also weighing on the crypto market's prospects.

However, Cardano supporters believe that cryptocurrency is fundamentally strong. DefiYield's Yevhen Karpenko suggested the reasons that make Cardano successful in the long run. He feels that Cardano is more decentralized than other cryptocurrencies due to the Ouroboros consensus method. He claims that Cardano has over 1500 validator pools.

Furthermore, Cardano has a higher transaction speed than other cryptocurrencies. It is now capable of processing more than 250 transactions per second. Ethereum, on the other hand, has a TPS between 15 and 45, whereas Bitcoin has a TPS of 5.

Key Events To Watch

Market participants are looking forward to the FOMC meeting on November 2nd. The Federal Reserve will announce its decision on the next interest rate hike, which will have a significant influence on price movements.