- After six months of accumulation, Cardano is looking ripe for bulls as daily Ichimoku Cloud also turns bullish
- Its price is also breaking above 200 MA which if happens is considered to be in a long term uptrend
- “I’ve never seen the company so unified and moving so quickly,” IOHK CEO Charles Hoskinson on Cardano development
ADA is currently up about 35% YTD, going to $0.046, the highest level of 2020 yesterday. This level was last seen in Sep. last year.
Currently, the 12th largest cryptocurrency with a market cap of $1.18 billion is trading at $0.0454, down 1.87% in the past 24 hours as per Coincodex while managing the daily trading volume of $16 million on top ten exchanges as per Messari.
Though ADA has a long way to reach its all-time high of $1.33 as it is down 97% from this, bulls are coming for the digital asset.
Why is ADA Bullish?
Analyst Josh Olszewicz says “fundamentals aside, ADA looks absolutely bonkers to me,” while pointing out several reasons for the same.
For starters, ADA has seen about 6 months of accumulation. This phase is a stage of consolidation where there is no clear trend and the crypto asset usually trades in a range. During this period, which begins after the completion of a downtrend, traders and investors accumulate assets. The longer the accumulation period, the more explosive the run-up if it starts to break out.
The daily Ichimoku Cloud has also turned bullish which is the second reason. The Cloud is a key part of this indicator and if the price is above this, the trend is up and vice versa. A bullish cloud-like such also saw BTC soaring from about $7,000 to $9,200.
fundamentals aside, $ADA looks absolutely bonkers to me
– nearly 6 month accum
– daily cloud turning bull
– high TF e2e = 2x+ pic.twitter.com/cexF7z0KwX
— Josh Olszewicz (@CarpeNoctom) January 22, 2020
Other factors behind the surge
Q1 has been bullish for altcoins as seen currently in the market. Bitcoin chopping is another factor contributing to the rise in their prices.
As analyst Ceteris Paribus notes, the launch of Bitcoin-related products like CME’s Bitcoin options would be bearish for altcoins. “If it isn't obvious, the more we see products like this get offered the more bearish it is for the majority of alts,” said Paribus.
However, another thing working for Cardano is that its price is breaking above 200 MA. An asset that is trading above its 200 Day Moving Average is considered to be in a long term uptrend.
— Beastlorion (@Beastlyorion) January 20, 2020
“I’ve never seen the company so unified and moving so quickly,” – Hoskinson
On the development side, Cardano’s commercial arm, Emurgo partnered with the government of Uzbekistan to form a blockchain task force to develop regulations for security token offerings (STOs) and security token exchanges (STXs).
Recently in an AMA, Ethereum co-founder Charles Hoskinson, CEO of IOHK, Cardano’s parent company said the past few weeks have been “illuminating.” The company has been constantly releasing new updates with the Sheely Incentivized testnet receiving its first update for the year.
The Daedalus wallet is also seeing updates every two weeks, which Hoskinson said are necessary for its hardware support.
“I’ve never seen the company so unified and moving so quickly,” commented Hoskinson while talking about its staking service and its continually evolving software that will ease ADA’s release into more exchanges.
Now moving forward, its OBFT hard fork is likely to occur in February, a month that will see its first workshop with auditing giant PwC.
Hoskinson currently at the World Economic Forum in Davos, Switzerland is using it as a “networking opportunity,” with leaders from both the blockchain and finance industry.