- 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.
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
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.