Latest Cardano News
What we have on the charts is an anticlimax. Are fresh 2018 bear memories back? From the charts, yesterday’s near double digit flash losses is a reminder of how fortunes can quickly change in the crypto sphere. Although Cardano’s ADA managed to secure its position at the top 10, we aren’t sure if this is permanent as margins are tight and coins as Bitcoin SV can erupt anytime—powered by different fundamentals.
What we know for sure is that Cardano as a developing platform and a future rival of Ethereum and the super hyped EOS and Tron is gearing for project Shelly. Project speakers say Shelly will keep in motion Cardano’s desire of keeping the platform decentralized as it is currently centralized and federated. Aside from promise of decentralization, end users should also know that once it is successful, Cardano will be 50X more decentralized than Ethereum and Bitcoin and the platform will be running on a proven, high quality, peer reviewed code to ever propel a cryptocurrency project.
Besides, Ouroboros Genesis—which was overwhelmingly successful during trials in Canada, is the first PoS consensus protocol that is proven secure and reliable. Anyhow, even with these flowers, a successful rollout of Cardano largely depends on education and how the community best understand the implications of running a staking pool or delegating their stake. That is why education is of prime importance as the community readies for Shelly in Q1 2019.
ADA/USD (Cardano) Price Analysis
Price wise and ADA—like the rest of the altcoin market—performed dismally. The coin is down a massive 10 percent in the last day at the time of press. Aside from the loss, it appears as if our trading conditions won’t be met because propelling yesterday’s wholesale liquidation was above average volumes.
As we can see, we now have a double bar bearish reversal pattern in the daily chart and the reason why we expect sellers to drive price action in the next couple of days despite 100 percent drops from 2017 peaks last year is the reaction of bears at the 50 percent Fibonacci retracement level anchored on Nov-Dec 2018 highs.
This candlestick arrangement is significant for our analysis because the 50 percent Fibonacci mark is historically a reversal level. Aside from the reaction, the fact that there was a spike in market participation—316 million versus 148 million averages, hint of underlying liquidation and sell pressure.
It is for this reason that we recommend shifting capital to stable coins as we wait for reaction at Dec 28 lows. If supports are blown then the next level of support will be at 2.8 cents of Dec 2018 lows. On the flip side, any recovery propelling prices back on bullish track and above 6 cents would be positive.
All Charts Courtesy of Trading View
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.