Cardano network battles node outage, proves resilience among Ethereum killers like Solana

  • Cardano network went offline on January 22, in a short-lived outrage, affecting 50% of nodes. 
  • Despite the brief outage, the network’s resilience led to the community comparing Cardano to competitor Solana that faced multiple outages in 2022. 
  • ADA price is on track for a 77.76% hike from its December 30 bottom of $0.25 to its bullish target of $0.42. 

Cardano network suffered a short-lived outage that affected nearly 50% of the listed nodes in its ecosystem. The Ethereum-alternative quickly bounced back from the outage, however, and this fueled a bullish narrative among ADA holders. While other Ethereum alternatives like Solana are hit by outages all-year round, as seen in 2022, Cardano’s network is considered relatively resilient and the ADA blockchain restarted without further intervention.

Also read: Solana could destroy Ethereum alternatives with its massive surge in activity on the SOL blockchain

Cardano network bounces back after Sunday’s short-lived outage

On January 22, over 50% of the listed nodes on the Cardano network went offline, hit by a short-lived outrage. This caused a brief period of disruption, but the network was eventually restarted automatically. Tom Stokes, the co-founder of Node Shark and a Cardano SPO, reported in a post that more than half of the listed nodes were affected.

The outage caused a drop in the price of ADA, with it falling by close to a fifth since Friday's session. This drop was largely due to fears over potential delays to improve the scalability of the blockchain, as well as the average cost per transaction on the Cardano network being higher than other blockchains.

Despite the brief outage, the Cardano community has been impressed with the network’s resilience. The Ethereum-killer was able to recover with no network restart being required. This quick revival has led to many in the community calling it evidence of Cardano being a better blockchain than Solana, which took several hours to restore the network when it faced multiple outages in 2022.

ADA price is on track for a massive rally

Ethereum-killer Cardano yielded nearly 30% gains for holders since January 9. The altcoin is prepared to buck the broader crypto market trend and climb to its 200-day Exponential Moving Average (EMA) at $0.4283. 

Interestingly, the zone between $0.4283 and $0.5373 has been an area of interest with the asset oscillating between the two levels for six months, from May to October 2022. The altcoin dropped below the $0.4283 level on October 5 and since then ADA made two unsuccessful attempts to enter the zone.

ADA/USDT price chart

ADA/USDT price chart 

If ADA price rallies to the $0.4283 level, it would mark a 77.76% hike from the asset’s December 30 bottom of $0.2500. A decline below the 50-day EMA at $0.3169 could invalidate the bullish thesis. 

Cardano’s Relative Strength Index (RSI), a momentum indicator, is at 75.17, signaling that ADA is overbought. Interestingly, since the beginning of 2023, cryptocurrencies with large market capitalization have bucked the trend and despite being overbought have continued their  rallying. ADA is likely to follow suit, unless the bullish thesis is invalidated, such as by a break and close below the 50-day EMA (as mentioned above) and the higher low at roughly the same level. 

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.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Bitcoin may be set for a price rebound amid alleged Trump's plan to speak at Bitcoin convention

Bitcoin may be set for a price rebound amid alleged Trump's plan to speak at Bitcoin convention

Bitcoin's price dropped below the $60K level briefly on Monday following news of defunct exchange Mt Gox beginning to pay its creditors in July. However, Santiment data reveals that the recent spike in social volume of the phrase "bottom" could signal a potential price rebound for Bitcoin based on historical trends.

More Bitcoin News

Solana down 15% in past seven days amid claims of alleged SOL investigation

Solana down 15% in past seven days amid claims of alleged SOL investigation

Solana holders and crypto analysts on X slammed influencer Crypto Bitlord behind the X handle @crypto_bitlord7 for his hot take on Solana and an alleged investigation. The analyst said that the alleged investigation has been brewing for “some weeks now,” and the crypto community on X heavily critiqued the influencer.

More Solana News

Ethereum whales increase their holdings following recent price decline

Ethereum whales increase their holdings following recent price decline

Ethereum's price (ETH) is down nearly 6% on Monday after Mt. Gox announced it would begin repaying creditors their Bitcoin and Bitcoin Cash. However, ETH whales have pounced on the price decline as an opportunity to purchase ETH before the arrival of spot Ethereum ETFs.

More Ethereum News

SHIB whale sells amid controversy surrounding WATER meme coin and singer Jason Derulo

SHIB whale sells amid controversy surrounding WATER meme coin and singer Jason Derulo

SHIB whales could be selling as the Dogecoin competitor has not seen sustained price growth in the past three months. WATER token might be facing selling pressure from increased insider activity. Jason Derulo accused of promoting crypto pump-and-dump scams by analyst.

More Shiba News

Bitcoin: Is BTC out of the woods?

Bitcoin: Is BTC out of the woods?

Bitcoin appears poised for a slight decline this week, influenced by factors such as the German Government's deposit of over 1,700 BTC in exchanges, decreasing outflows in US spot ETFs, and on-chain data indicating no signs of BTC DeFi liquidation. 

Read full analysis