LUNA has fallen around 84% within 72 hours following the ruckus around the stablecoin UST. UST de-pegged from the dollar and fell below $1, as low as $0.65 before recovering to $0.94 and dropping toward $0.7 once more.
Support levels don’t really appear to matter for LUNA right now as the selling pressure has been extreme. Cardano and Avalanche were also on a downtrend.
The A/D indicator showed heavy selling volume behind LUNA in the past few days. The Awesome Oscillator showed weakening bearish momentum even as the price made a lower low. Does this bullish divergence warrant a buy LUNA? Absolutely not! Long-term investors can look to buy some LUNA at or even under the $10 mark, as Do Kwon tweeted that a recovery plan for UST was around the corner.
The time to short LUNA was when it first fell below $70. In the short term, a long or short position on LUNA could be extremely risky given the market volatility. Long-term investors could look into dollar-cost averaging into a position on LUNA with faith in a recovery in the weeks to come.
Cardano retested the $0.69 level as resistance the previous day. The RSI attempted to climb past neutral 50 to indicate a shift in momentum toward the bulls but was unable to. The CMF was also beneath the -0.05 mark, which suggested significant capital flow out of the market.
The moving averages also showed bearish momentum as the 21-SMA (orange) was moving beneath the 55-SMA (green), which also acted as resistance in the past few days. The next horizontal support for ADA lies at $0.57.
The market structure was decisively bearish as the price set a series of lower highs and lower lows in the past week, barring a breakout above the $64 level that was quickly reversed. The Fibonacci retracement levels (yellow) showed that AVAX bulls made a good effort to drive prices past $46.7, the 38.6% retracement level. However, they were rebuffed after a day of skirmishing.
This meant the $40 and the $35.23 (27.2% extension level) are the next strong levels of support to watch out for. The OBV did bounce in the past few days, but the RSI was back beneath the neutral 50 line to denote strong bearish pressure.
Cardano [ADA]: Vasil’s date is set and investors should know that…
In the early hours of 14 May, Cardano founder Charles Hoskinson informed the community that the Vasil Hard Fork is on schedule. It would be implemented by 29 June, he said.
With the Vasil Hard Fork, significant updates will be deployed on the Cardano blockchain and its smart contract platform, Plutus.
Speaking about the Vasil Hard Fork in its Mid-month Development Update, IOHK noted that it is preparing for a closed public testing phase for the Vasil Hard Fork network. It was further revealed that the testing will also be in collaboration with Dapps to test their applications on the network’s testnet and mainnet.
IOHK also stated that after this phase, access will then be given to exchanges to test all integrations necessary to run the Cardano blockchain. By the end of May 2022, it should be in a position to hard fork Cardano testing.
In light of these announcements and upcoming updates, let’s see how ADA has been doing on the price charts.
Not too bad?
Valued at $0.53 at the time of press, ADA was up by just 1% in 24 hours. Comparatively, over the last 7 days, the crypto was down by 29%. As the cryptocurrency market begins to “heal,” thanks to the many upcoming Cardano updates, ADA’s recovery is expected to be fast-tracked.
In fact, its market capitalization only declined by 0.05%. It further recorded a high of $18.20 billion following Hoskinson’s confirmation of 29 June as the date for Vasil. At the time of writing, the market capitalization stood at $18.03 billion – A mere 0.9% decline from a high of $18.20 billion in the last 24 hours.
Okay, volume is down
It is noteworthy to point out that the confirmation of a date for the network’s update had no significant impact on the transaction volume. Recording a transaction volume of 1.19 billion on 14 May, this represented a 38% decline from the 1.94 billion recorded on 13 May.
But wait, the whales are up
Despite no significant difference in market capitalization, data from Santiment underlined an increase in Whale Activity following the update.
As of 14 May, for transactions over $100k, a total of 238 transactions were completed – A 3% spike from the 230 transactions recorded on 13 May.
Similarly, for transactions over $1 million, a total of 238 transactions were completed – A 2% increase from the 232 recorded on 13 May.
One man’s loss might be another man’s gain
ADA is currently ranked 7th by market cap on the charts, right below XRP. However, with the ongoing case against Ripple and its effect on the price of XRP, ADA might surpass XRP in the near future.
Crypto Analyst Predicts 1 Altcoin Will Fall Down Hard – Is It Cardano?
Pseudonymous crypto trader and analyst Capo tweets that Cardano (ADA) is bound to go on a massive downward trend.
This popular crypto trader with over 307,500 followers on Twitter predicted a massive plunge before the coin finishes its five-waved downward trajectory following the Elliott Wave Theory.
The Elliott Wave Theory pertains to a technical analysis that can predict price action by looking into mind psychology or crowd behavior that can be seen in waves.
Based on the theory, the crypto asset would always go through a predictive five-wave cycle before it makes that pivot or reversal.
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Before the coin completes its five-wave downward course, Capo anticipates a catastrophic crash (Coingape).
Capo Predictions On ADA, BTC, Terra, STEPN
According to Capo, ADA is on its way to completing the fourth wave which means it’s ready for that final wave.
Cardano is currently trading at $0.55 which is categorically 45% above the target price point of $0.30.
Cryptocurrencies recovered quite a bit on Friday but crashed today which appeared to be a roller-coaster ride of sorts.
The erratic market moves have been worrisome for many crypto traders and investors alike. Bitcoin (BTC) has fallen by 3.6% and Cardano (ADA) went down by 6.65%.
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With the Federal Reserve pulling a tight rein on monetary policy, there isn’t a hint of a bullish trend. With the way things are going, many traders are looking for safer crypto assets compared to riskier ones.
Meanwhile, Capo is also keeping a steady eye on STEPN, a move-to-earn app built on the Solana blockchain. Capo says that he is looking at a significantly low trading value of $0.60. Looks like GMT is heading down the basement, as he describes. GMT is currently trading at $1.52.
ADA total market cap at $18.42 billion on the weekend chart | Source: TradingView.com
Bitcoin Still Better Than Cardano?
Outlook for Bitcoin looks good as it continues to correct after going over the key support locked in at $30,000. The $30,000 support supposedly jarred it. A two-day candle has closed right below it and currently tapping that zone as support. At this point, this spot is still not good for buying.
Adding salt to the wound is the miserable turnout in the market value of TerraUSD that is pegged to USD. It’s now priced at $0.18 this week. Meanwhile, TerraUSD is mapping out a recovery plan this week.
Overall, Cardano is more volatile compared to Bitcoin although it appeals greatly to the broader market, in general.
Bitcoin has more promise to be bullish for the long term compared to other coins, including ADA.
Featured image from Forkast News, chart from TradingView.com
Cardano [ADA] holders should know this as they continue wrestling a ‘cold ice bath’
It might be Friday the 13th, but the real scare for many bulls probably came a day earlier, when Bitcoin dropped below $27,000. However, as Bitcoin hit $30k again and the top ten cryptos by market cap fell into formation, here’s how the seventh biggest asset was doing.
You should see me in a crown
At press time, Cardano [ADA] was changing hands at $0.5809 after bouncing up by 42.80% in a day. That brings the coin up to a loss of value of 26.65% in the past week.
So prices are recovering, but how is the community doing after all the whiplash? Unfortunately, it looks like development activity is still down, as has been the case since an earlier price drop last week.
In fact, it seems as if Cardano’s development activity is still strongly linked to ADA’s price performance. This means that ADA’s comparably slow rally rates could chase off developers who want to see profits.
Yet, it seems that Cardano founder Charles Hoskinson isn’t too worried about market bottoms. Rather, a tweet of his on 12 May – with a Game of Thrones soundtrack – suggested the exec might even be ready to face a “cryptowinter.”
If this is your first cryptowinter, then welcome. Been through many since 2011 and they always hit like a cold ice bath. We are in the panicked blood in the street phase. It clears in weeks to months as a bottom is found. Then a long climb up the ladder https://t.co/R1QMF0NgRI
— Charles Hoskinson (@IOHK_Charles) May 12, 2022
What’s the meaning of this? Well, it’s not news that Hoskinson is sick and tired of investors bugging him about when ADA will see its next bull run. One interpretation is that a “cryptowinter,” so to speak, could throw off less dedicated investors so only hardcore Cardano supporters, investors, and builders stay in the community – or on the “ladder.”
As if to prove the point, Cardano saw a spike in whale transactions worth above $100,000. 12 May alone saw 2,397 such transactions while ADA was trading at around $0.4. These levels were last recorded on 24 March 2022. It seems that in spite of “panicked blood” gushing down the streets, some whales decided it was a good time to fill their shopping bags.
Up or down the ladder?
So where could ADA go next? In favor of the bulls or the bears? Two price indicators had a clear answer: bears. The Relative Volatility Index [RVI] was below 50 at press time, which suggested that further volatility could take ADA downwards.
Furthermore, the Awesome Oscillator [AO] was flashing growing red bars below the zero line. This means that in spite of ADA’s green candle, selling pressure is high indeed.
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