The Kadena (KDA/USD) price bullish momentum has waned recently. After staging a major rally in November, the price has struggled in the past few weeks. It is trading at $17.47, which is about 40% below the highest point in November. This drop has brought its market capitalization to more than $2.8 billion and its ranking to 62.
Why has KDA lagged?
Kadena is an Ethereum-killer that was started by a team made up of former JP Morgan employees. The company was even part of the company’s startup incubation project. Its founders were among the founders of JP Morgan’s JPM Coin, the bank’s cryptocurrency. It has received more than $15 million from venture capital firms.
Kadena competes with Ethereum and its popular alternatives like Solana, Binance Smart Chain (BSc), and Avalanche. Its claim to fame is that its technology is blazingly fast since it can process more than 450,000 transactions per second (tps).
This is a major milestone since Ethereum handles less than 20 transactions per second. Visa, the global fintech juggernaut, processes less than 5,000 tps. Therefore, the Kadena price jumped since many investors saw it as a major competitor to Ethereum.
The recent price action of KDA is likely because of profit-taking. Historically, cryptocurrencies and other assets tends to go through consolidation after making a major rally. The same thing is happening among some of the currencies that did well recently like IoTeX and Shiba Inu.
Another concern is that Kadena’s faces strong competition. Like all Ethereum-killers, it is facing the challenge of how big Ethereum really is. Today, with all its challenges, Ethereum is the most dominant smart contract platform.
It is the biggest player in decentralized organizations (DAO). For example, in DeFi, its assets have a total value locked of more than $180 billion. This figure is significantly higher than that of all other killers combined.
Kadena price prediction
The four-hour chart shows that the Kadena price has been in a tight range in the past few weeks. As a result, the coin is trading at the same level as the 25-day and 50-day moving averages. It has also found substantial support at the key level at $15.75. The MACD is also along the neutral line.
Therefore, in my view, I believe that Kadena is down but not out. As such, there is a likelihood that it will bounce bank and retest its highest level this year.
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