Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
Cardano’s [ADA] recent reversal from the $0.546 ceiling saw a buying pressure renewal from the 200 EMA (green). Over the last three days, ADA’s descending channel (white) break out in the 4-hour timeframe saw stagnation in the $0.5-$0.51 resistance range.
The broader perspective for ADA took a rather neutral stance with a slight edge for buyers. Especially, after the altcoin’s close above the 20 EMA (red) and the 50 EMA (cyan), the bulls would strive to escape the shackles of low volatility. At press time, ADA was trading at $0.51.
ADA 4-hour Chart
As the down-channel trajectory infused a bearish pull below the 20/50 EMA, the near-term narrative for the alt took a toll. However, the 200 EMA coincided with the three-week trendline support (white, dashed) to build a solid support zone.
This support level propelled a patterned breakout that struggled to hover beyond the Point of Control (POC, red) in the $0.509 zone. Meanwhile, the price action entered into a relatively low volatility phase. So, an inability to inflict a strong bullish move could extend the sluggish behavior in the coming sessions.
Further, the prospects of an effective morning star pattern would considerably heighten if the current candlestick closes at a higher closing price.
With the rejection of higher prices in the $0.5 zone, ADA could see compression near the POC. An immediate buying resurgence above the Point of Control (POC, red) could pave a recovery path toward the $0.52-$0.54 range.
Any close below the trendline support could invalidate the bullish tendencies.
The Relative Strength Index displayed neutrality while hovering near the equilibrium.
A compelling close beyond the 56-level can aid the buyers in recouping their forces to propel a volatile break.
Further, the CMF marked higher troughs over the last two days and affirmed a bearish divergence with the price. So, reversals from its immediate resistance level could hamper the near-term buying efforts.
Nevertheless, the Directional Movement Index (DMI) exhibited a strong bullish edge. But the ADX of ADA revealed a substantially weak directional trend.
While the 20 EMA strived to jump above the 50 EMA, the buyers could claim a near-term edge. A close above the $0.51-level ceiling could confirm these bullish inclinations. The targets would remain the same as above.
Finally, traders/investors should keep a close watch on Bitcoin’s movement and its effects on the wider market to make a profitable move.
What triggered Cardano’s buying spree for short time
Cardano, one of the most trending assets witnessed immense buying activity within a relatively shorter time frame. But you ask, what was the reason behind the unprecedented spark?
All credit goes to…
Well, different aspects have helped the token reach a significant mark. At the time of writing, ADA traded above the $0.54 mark on CoinMarketCap. ADA holders, indeed, have supported the token through thick and thins.
The total number of wallets created on the Cardano network reached a new milestone. Despite the further delay of the anticipated Vasil upgrade, the entire ADA wallets in existence surpassed 3.5 million (3,510,499).
ADA delegators grew simultaneously as well as per data collected from Cardano Blockchain Insights on 9 August. At press time, the total number of ADA delegators on the chain was 1,174,077.
In addition to this, the number of smart contracts on the platform exceeded 3,000 for the first time this month. It currently stood at 3,043.
Notably, ADA whales acquired>130 million worth of ADA in the last eight days according to Santiment’s graph below.
Basically, ADA shark and whale addresses combined to accumulate $138 million in ADA in just over eight days.
Meanwhile, ADA was one of the top 10 most traded assets among the top 4,000 BSC whales just 24 hours ago.
Unfortunately, Cardano, despite showcasing such bullish developments, couldn’t really aid ADA’s price or even speculations against it.
For instance, Billionaire Mark Cuban recently made claims that Dogecoin had greater utility than Cardano. In an interview, he said, “I still think Dogecoin has more applications available to it than Cardano.”
“I still think #Dogecoin has more applications available to it than #Cardano” — @mcuban
Watch FULL interview
>> https://t.co/P0qjFzIW4b pic.twitter.com/f6IPN9g5PW
— Altcoin Daily (@AltcoinDailyio) August 7, 2022
But Cardano’s community-focused enthusiasts were quick to respond. A Twitter account by the name ADA Whale, for instance, replied,
“Can’t really get mad about Cuban. Was a factually wrong statement meant to incite. He doesn’t have a great crypto track record, and his outlook on it is probably day and night to ours. From his responses he doesn’t seem too hot on crypto in general, seems less cardano specific.”
Cardano’s founder finally breaks silence as ADA goes mooning
Former Ethereum executive and Cardano [ADA] founder, Charles Hoskinson, recently broke his silence on the Vasil hard fork upgrade. Recall that Hoskinson had not made any public comment on this issue since Cardano confirmed there would be a delay.
In a video which he named “Some Brief Comments on Vasil,” released via his Twitter page, Hoskinson noted that there had been several unavoidable reasons for the setback.
Some Brief Comments on Vasil https://t.co/2ukWZZJoto
— Charles Hoskinson (@IOHK_Charles) August 1, 2022
Tests and failures
According to the crypto head, the Vasil process had to pass some stages before the upgrade could occur. He noted that while some features can be skipped, others can not be.
Hoskinson said that Cardano was in an advanced testing stage despite the delay. However, he reiterated that confirmed tests also need to be verified. He further revealed that, in the verification process, the team discovered some bugs that needed to be fixed and re-tested.
After trying out nodes v.1.35.1 and v.1.35.2, the founder said that node v.135.3 could be the final version for the Vasil upgrade.
Even with the release, Cardano’s native cryptocurrency, ADA, had not responded positively.
Following the incident above, ADA spiked by 2.11% over the last day. At press time, the cryptocurrency in question was trading at $0.5052 as per CoinMarketCap.
But according to CryptoQuant, ADA’s 24-hour volume was down 16.40% to $679.83 million on 2 August.
Although the bullish sentiment of the entire crypto market may push ADA back above its near-term resistance, it might not be able to sustain its increase because of the lack of volume.
It’s here to be noted that developer activity on the Cardano chain has taken a downturn expectedly.
However, data from Santiment showed that network activity has improved. On 2 August, the 24-hour active addresses on Cardano had improved significantly. On 1 August, it was 186. However, a day later, it had surged to 39,500.
While the active addresses increase might not mean anything substantial for the ADA price, it proves that Hoskinson’s video may have triggered investors’ confidence.
Much to the surprise of investors, Hoskinson stated that there would be no more delays on the Vasil upgrade.
However, nothing can be sure, especially since it took a long time for him to communicate. But, this would likely not stop investors from anticipating a more scalable Cardano.
ADA Up 22% In Last 7 Days; Remains On Track To Test $0.6 Barrier
It’s game face on for the bulls as Cardano (ADA) swerved up to $0.54 as seen overnight. ADA price spotted below key resistance level of $0.55. Meanwhile, traders are optimistic that a looming breakout may happen up to $0.6 by next week.
Cardano (ADA) price is on a bull run as the price shoots way up forming a bullish hammer pattern seen on the daily chart.
The uptrend precipitated on July 27, 2022 with the price spotted at $0.45 has pushed ADA price to incredible heights with its 30-day high of $0.55.
ADA Seen Spiking To $0.6 In The Coming Days
As of press time, ADA price is seen under the $0.55 resistance zone with a triple top formation circling the area. More so, ADA price has soared by over 22% in the past five days and can still spike to as high as $0.6 in the coming days.
The crypto market has been showing confusing signals overnight especially as BTC jumped close its target of $24,000 mark and with Ethereum consolidating at $1,700. Consequently, XRP plunged to $0.39 along with DOGE that also declined by $0.07. Moreover, SOL also plunged by 4% and DOT spiked by 6%.
Judging by the 24-hour chart, ADA price is seen to cascade and form an extending ascending triangle pattern peaking a 30-day high seen at $0.55. ADA price spike was followed by the formation of a sideways pattern with the price range of $0.45 to $0.50.
ADA’s RSI Signals A Bullish Momentum
It’s 24-hour RSI signals that it is drawing close the overbought zone spotted at 60.09, which could either trigger a bull run or could pull ADA price further downwards. ADA trading volume in the past 24 hours has seen a plunge of 24% which suggests that traders are on pause to figure out the next pattern.
More so, the MACD or Moving Average Convergence Divergence curve still shows bullish momentum and has been gaining a lot of traction with bullish divergence.
Around 53 Fintech experts laid out their price prediction for Cardano in July 2022. These crypto specialists predicted that ADA is set to end 2022 at a price of $0.63. Basically, judging by the current ADA price of $0.5, the forecast gives a pump in price of 26% by the end of 2022.
Cardano initially had a higher price forecast of $2.79 in January but its rivals such as Polkadot, Tron, Polygon, Solana, Avalance, and BNB Chain gives the coin a “win it or lose it” game plan. There is basically no gray area for ADA or other altcoins at this point.
Moreover, other Fintech experts say that Cardano seem to fall short in terms of delivery of updates as well as in attracting more projects.
ADA total market cap at $384 billion on the daily chart | Source: TradingView.com Featured image from ZyCrypto, chart from TradingView.com
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