“I told you I’ll be back!” – Cardano (ADA) Numbers have life; they’re not just symbols on paper…
Unfortunately, there is no ADA/USD ticker at Trading View platform where I am publishing my investment ideas on a daily basis, and because of that, this will be the first time I will be using a ADA/BTC ticker in my technical analysis. In order to make it simple for you, I decided to convert BTC to USD as well. Ok, so let’s go straight to the T.A (Technical analysis)
Cardano has started this week with a small bounce off of the support level from 0.00003084 BTC (0.30$) right up to 0.00003230 BTC (0.31$) with a consequent drop back to 0.00003084 (0.30$). And now take a look at how it has ended this week. As you can see there was a strong upward breakout earlier this day and Cardano has managed to get out of the very apex of this purple wedge (yes, I like purple sometimes). According to the RSI indicator, it is obvious that ADA is entering into the “overbought” zone. This means that very soon we should see a temporary reversal probably half the way down to 0.00003300 BTC (0.32$) before it opens the road up to 61.8% Fibonacci retrace (the area where I expect the first resistance to emerge). I knew this will happen very soon…
This is what I’ve recently said: “Looking at a 4-hour chart you can see that ADA/BTC has been very sluggishly crawling across the support level of 0.00003084 BTC (0.30$). If you take a look at both RSI and MACD indicators you will see that the RSI has finally made a reversal and the bullish crossover happened on the MACD – but ADA has traded all the way into the very apex of the purple wedge. It seems like Cardano is screaming right now: “Help me guys, nobody is trading me! I got stuck here!”. Well, yes, the volume is relatively small and the volatility was also low (Look at Bollinger Bands, one of the best indicators of volatility, which has squeezed significantly). The fact that ADA/BTC hasn’t dropped below its support level suggests the end of a bearish trend. However, ADA needs a strong momentum to break the wedge and to finally open the road for a big BULL. Periods of low volatility generally tend to be followed by periods of high volatility (and vice versa). So I anticipate an upward momentum very soon. Right now the candles are so small that you can barely see them.”
So it looks like ADA is heading towards 0.00003738 BTC (0.36$). Do you guys think the bear has finally gone? – I think YES! Anyway, we have to wait a little bit before making any final conclusion.
Recent news & updates: What I really like about Cardano’s team is that they are constantly providing their followers with a weekly in-depth report regarding the technical features that were added, updated, fixed or various issues that were detected. If you would ask me which of the blockchain projects currently existing has the highest credibility – Cardano would be my first answer. That is for sure!
Below is the list of recent updates:
1.Ledger: The Cardano team has recently announced that they want to enhance their ecosystem by introducing their own Ledger hardware wallet. One of the team members continues to work with the blockchain consultancy firm on resolving questions around the ED25519 derivation implementations used by Ledger and IOHK. Good news for ADA hodlers because, as we all know, hardware wallets allow us to store private security keys away from online devices, which is a great security against the access of any third party.
2.Daedalus: During this week the Daedalus team performed various manual testings and quality assurance tasks for the upcoming Daedalus 0.9 and Cardano 1.1 release. Some issues were detected and fixed.
3.Log submission: Two more flags (–store, –send-logs) have been added to the code base. Currently, the report server only accepts a maximum of one file. In the past week, the maximum file size upload increased to 25MB. This functionality is now being tested.
4.Wallet backend: A new benchmark was added for the New Wallet endpoint. Mempool consistency has been completed and merged, the DB schema change and migration has also been completed and is now awaiting to be merged.
If you take a look at Cardano’s roadmap you will see that they are actively working on the things they’ve promised to deliver – Well, of course they are! What else would you expect from the “3rd generation cryptocurrency” project By the way, the next update will be released in 7 days. Stay tuned!
Please remember that I only give you my observations. In any case, you have to form your own opinion and trade it accordingly! Don’t forget to do your own research before considering any investment. Hope you will find my analysis useful! Stay safe, hedge your positions, diversify. I promise you that we will beat the market together!
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