Overly, our general expectation was that prices are bottoming out. However, with that strong bear candlestick, it appears that trend is picking up and likely to break below June 13 lows if that pace is maintained. So, all things constant, it’s better to take a neutral stand and track how price action pans out.
From the News
In the midst of doubters, sellers and hacks, Cardano still stands out as a project in development. It has repeatedly told off critics by implementing several of their previous promised updates in Q2 this year. Even though we may still argue that Cardano is nothing but an over-valued project in the top 10 that is yet to implement none of their theories, still we can see some of their technical steps are well meaning and anchored to make this project a success.
By all accounts, ADA has been touted as a stable cryptocurrency and while ADA their native token that resides in the CSL fluctuates depending mostly on the performance of the market and specifically BTC, there is an element of assurance. That of security that we cannot wish out. Let’s not forget the influence of Charles Hoskinson, the co-founder of Cardano who was one of the founding members of Ethereum before the DAO event.
So, first, to protect ADA holders, they came up with a clever update enabling print out of their token certificates complete with the addresses of their offline wallets. Besides there is development in progress for their Settlement Layer where the Plotus Coreupdate is 50 percent done and with IELE Virtual Machine VIdevelopment execution of smart contracts and translation of higher level language will be possible in Cardano CSL.
On the strategic partnership front which the Cardano Foundation is responsible for, there is movement. One of them is the planned partnership with MetAps Plus, one of South Korea’s largest mobile providers. That’s not all, there is further listing from eToro and while this guarantees exposure and the much needed liquidity, individual investors would have more opportunity to diversify their portfolio in this innovative trading platform.
ADA Technical Analysis
Perched at eighth in the liquidity list, ADA is struggling to cope with sellers. In the last seven days for example, its price is down three percent and from the chart, it is near its main support at 12 cents. Coincidentally, that’s April lows and by end of this week and especially if the current weekly candle ends up bearish then sellers would have been successful in reversing April gains. All in all, ADA is trending inside a 30 cents trading range with highs at 40 cents. However, like most coins under our focus, it’s likely that these lower lows are nothing more that long covering in a classic effort versus result scenario. Note that it took eight or so weekly candlesticks to reverse April’s gains and while at it, trading volumes are relatively low.
So, it’s solely because of the weekly chart events and the fact that at current valuation, price is 3 cents away from the main support that would deter us from selling. It’s better to take a neutral stand and wait. That’s despite the obvious strong bear pressure threatening to break below June 13 lows and distribution/accumulation at 14 cents. From our previous analysis, our conservative buy triggers was at 18 cents or June 14 highs. Any form of up thrusts above this level accompanied by high trading volumes welcomes ADA buyers.