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Is Cardano’s [ADA] rally probable yet? The answer might impress you

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Is Cardano’s [ADA] rally probable yet? The answer might impress you

Cardano’s [ADA] price has been under a strong bearish influence, especially since dropping from the vital $1.2-resistance. After falling below the 20 EMA (red) and 50 EMA (cyan), the altcoin was on a streak of liquidations while correlating with the broader sell-offs.

Altering the overall outlook was still a long shot for the bulls while they had to find renewed buying pressure to snap the constraints of the 23.6% Fibonacci resistance. At press time, ADA traded at $0.5307, down by 3.12% in the last 24-hours.

ADA Daily Chart

Source: TradingView, ADA/USDT

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Aggressive sell-offs from the $1.2-ceiling resulted in a 67.35% drop from ADA’s April highs. As a result, after falling below its Point of Control (POC, red), ADA poked its 15-month low on 12 May. On its way south, the 61.8% Fibonacci level held up well after restricting the falling wedge breakout. While hampering the bear run, buyers finally induced a few green candles but failed to support it on elevated volumes.

Over the last six days, the altcoin saw an expected bearish pennant breakout as the price action approached the 23.6% level barrier. With an overextended gap between the 20 EMA and 50 EMA, the sellers exhibited their superior edge in the current scenario.

A continued revival from its immediate support could see an anticipated hurdle in the $0.59-zone near the 23.6% level. However, without sufficient volumes, the buyers would find it difficult to challenge the resistance offered by the alt’s near-term EMAs. The buyers would now aim to lower the gap between the 20/50 EMA in the coming days.

Rationale

Source: TradingView, ADA/USDT

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The Relative Strength Index suggested that sellers have a clear advantage in the current market structure. The buyers needed to push the RSI above the 38-level to propel a short-term rally beyond the 23.6% level on the charts.

An inability to pick Aroon up (yellow) from the zero-mark could lead to further undesired losses. AN eventual recovery from this level would open doorways for a smoother recovery. 

Conclusion

Looking at the current bounce-back from the $0.5-level, ADA could slam into the 23.6% level for testing its resistance. An eventual break above this level could pave a path to challenge the constraints of its near-term EMAs. But the threats along the Aroon up indicator could delay the potential of a bull run.

At last, ADA shares a high correlation with the king coin. Thus, traders/investors should keep a close watch on Bitcoin’s movement to make a profitable move.

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With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

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Value Locked In Defi Jumped 7% In 5 Days — Harmony’s Horizon Bridge Siphoned For $100M

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Value Locked In Defi Jumped 7% In 5 Days — Harmony’s Horizon Bridge Siphoned For $100M

While crypto prices have seen some healing during the last few days, the total value locked (TVL) across the entire decentralized finance (defi) ecosystem has also improved. The TVL in defi has seen an increase of 7.19% since June 20, and the defi protocol Makerdao’s TVL dominates by 10.37% this weekend.

Defi TVL Improves, Cross-Chain Bridge TVL Slips, $100 Million Stolen From Harmony’s Horizon Bridge

Decentralized finance has taken a hit from the recent crypto bloodbath following the Terra blockchain fallout, the most recent Federal Reserve rate hike, and the alleged financial issues surrounding Celsius and Three Arrows Capital (3AC). On June 17, Bitcoin.com News reported on the bear market affecting defi negatively and three days later the TVL in defi dropped to a low of $71.98 billion.

Since then, there’s been a 7.19% increase as the TVL rose from $71.98 billion to today’s $77.16 billion. The Makerdao protocol has the largest TVL out of all the defi projects and dominates by 10.37% this weekend with $8 billion TVL.

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Makerdao’s TVL has increased 6.89% during the past seven days. The second largest defi protocol in terms of TVL size is Aave, with $6.59 billion, and Aave recorded a 27.13% increase during the course of the week. As far as blockchain TVL distribution is concerned, Ethereum commands 63.98% with $49 billion TVL.

Binance Smart Chain (BSC) is the second largest chain by TVL with 7.85% or $6.01 billion locked. After the market capitalization of the top smart contract tokens hit $245 billion last week, the market cap has swelled to $280 billion, up 1.4% during the last 24 hours.

Ethereum (ETH) increased 12.7% against the USD, and BSC jumped 10.5% this past week. Solana (SOL) swelled by 37.1%, avalanche (AVAX) recorded a 32.2% increase, and polygon (MATIC) rose more than 50% during the seven-day period.

The biggest gainers in the top smart contract token list during the past week were ronin (RON), zilliqa (ZIL), and polygon (MATIC), respectively. Despite smart contract tokens seeing some gains this week and the TVL in defi improving, the TVL across the cross-chain bridge sector is down 60.4% during the past 30 days.

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At the time of writing, the cross-chain bridge TVL across 16 different protocols is $11.77 billion in value. Polygon commands the largest cross-chain bridge TVL with $3.6 billion locked on June 25.

Meanwhile, the defi ecosystem has seen a few hiccups over the last seven days as Convex Finance is asking users to review approvals while it evaluates a “potential front end issue.” Additionally, Harmony’s cross-chain bridge lost $100 million in a theft that took place on June 23.

“Note this does not impact the trustless [bitcoin] bridge; its funds and assets stored on decentralized vaults are safe at this time,” the Harmony team wrote about the situation. “We have also notified exchanges and stopped the Horizon bridge to prevent further transactions. The team is all hands on deck as investigations continue.”

What do you think about the value locked in defi improving and the increases smart contract tokens saw during the past week? Let us know what you think in the comments section below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Cardano Vasil Hard Fork Postponed To Allow For More Testing

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Cardano Vasil Hard Fork Postponed To Allow For More Testing

A The Input-Output Global (IOG) team has said it will postpone sending the Vasil hard fork update proposal because it still needs to solve seven outstanding bugs that are currently ranked as non-severe. While acknowledging that the news will likely be disappointing for some, the IOG team insisted it was “taking an abundance of caution to ensure that we do this deployment correctly.”

More Time Needed

The core Input-Output Global (IOG) team working to facilitate a Cardano Testnet upgrade announced recently that it had “agreed” to delay sending the Vasil hard fork update proposal as previously stated. The team hinted that some seven outstanding bugs, none of which have been ranked as severe, necessitated the delay.

According to a June 20 blog post, the decision to postpone the hard fork followed the core team’s end-of-the-week evaluation call. While noting that the team had managed to get through 95% of the Plutus V2 test scripts, the post said the core team still needed to run a few outstanding items to ensure everything is working as expected. The post added:

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We have determined we’ll need a few more days for this. This puts us behind schedule on our previously communicated target date of June 29 for a mainnet hard fork.

Meanwhile, in the blog post, the IOG team describes the work on the Vasil hard fork as the “most complex program of development and integration” it has worked on to date, which has also required close coordination across the ecosystem.

Mainnet Upgrade Pushed Back

According to the blog post, the final decision to hard fork the Cardano Testnet will be made in consultation with “members of the SPO and DApp development community.”

The post notes:

Today, IOG and the Cardano Foundation have agreed a new target date to hard fork the testnet at the end of June. Once completed, we will then allow four weeks for exchanges and SPOs to carry out any required integration and testing work. This is only reasonable and should not be rushed. The working assumption should therefore now be a Cardano mainnet hard fork occurring during the last week of July.

While acknowledging that the news of the hard fork delay is likely to disappoint some, the IOG team insisted the decision had been made to ensure that deployment was done correctly. As previously reported by Bitcoin.com News, Cardano supporters anticipated the hard fork would help the ADA token breach the $1 mark by the end of June. However, since the announcement, the token has ranged between $0.51 and $0.46.

The IOG team in meantime warned that “no timelines can be absolute in software development.” If more time is still needed the developers will be fully comfortable with this, the core team explained.

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What are your thoughts on this story? Let us know what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Cardano (ADA) Moved Upwards After Consolidation, What To Expect Next?

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Cardano (ADA) Moved Upwards After Consolidation, What To Expect Next?

Cardano showed an uptrend after it was trading laterally, the coin has now settled above the $0.47 support mark. Over the past week, the coin gained 7.2% but over the last 24 hours ADA lost 1% of its market value. After the consolidation, the coin targeted its immediate resistance mark.

If the coin continues to remain at the current price level then bulls can be back in the market for a longer time period. The buyers also seem to be back in the market which has pushed ADA to show signs of relief.

If buying strength loses its vigour then, the coin can move to $0.45, post which the coin can trade as low as $0.40.

Even now the coin seems to be trading within a tight range, but the push above the $0.49 mark has displayed itself as a sign of bullishness. With consistent buying strength, Cardano can move past the $0.50 price mark.

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Cardano Price Analysis: Four Hour Chart

Cardano was priced at $0.51 on the four hour chart | Source: ADAUSD on TradingView

ADA was trading at $0.51 on the four hour chart after it broke past its consolidation phase. The closest support level of the altcoin stood at $0.47 but slight push from sellers can drag prices to $0.40. There was bullish signals on the four hour chart.

An ascending trendline points at bullishness (yellow). Push from buyers can help Cardano to rise to $0.52 and then to $0.56. To invalidate bearish thesis completely the coin has trade above the $0.56 for substantially long.

The volume of Cardano traded also shot up indicating that buyers were active in the market. The volume bar was green signifying bullish price action.

Technical Analysis

Cardano displayed increased buying strength on the four hour chart | Source: ADAUSD on TradingView

Buying strength painted consistent upward movement over the past few days. The Relative Strength Index painted the same picture, the indicator was well above the half-line. This reading is tied to bullishness as buyers have taken over the market.

Other technical also indicated buyers taking over. The price of ADA was above the 20-SMA line. A reading above which signifies that buyers were in control of the price momentum as they were responsible for driving it forward.

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Related Reading | Cardano Resists Downward Pressure, Can ADA’s Price Push Bears Away?

Cardano displayed buy signal on the four hour chart | Source: ADAUSD on TradingView

ADA’s buying momentum showed positiveness on the four hour chart. Moving Average Convergence Divergence depicts price momentum and a trend reversal too. MACD underwent a bullish crossover and flashed green signal bars.

These green bars are buy signals for the coin, this meant that bullishness was present in the market. Other indicators too have shown strength in buyers.

Bollinger Bands indicate price volatility and they were parallel on the chart. Parallel Bollinger Bands means that price of the asset will hover around the same price range and that further indicates continued relief for the coin.

Related Reading | Will The Vasil Hard Fork Trigger A Cardano (ADA) Bull Run?

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Featured image from UnSplash, chart from TradingView.com

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