Cardano Price Analysis: ADA is Just One Barrier Away from a Return to December 2018 Low

  • Yoroi, the Cardano wallet is now live for android users, facilitating the storing of ADA and transactions.
  • ADA/USDT is gunning for a big retest of the December 2018 low area.

Cardano’s ADA has been taking a large beating over the past few sessions. If looking at ADA/USDT, this has been falling for the past seven consecutive sessions. The intensity to the south has been picking up momentum the last three days, as the price breaks the recent range. In terms of the initial range-block, this was observed from 11th January up to 26th January.

Further on the above-detailed price behavior, the market had initially been hit by hard sellers on 10th January. The price here had dropped as much as 20%, after running into an area of supply. Given such a sharp and aggressive fall, the market consolidated. This could be seen as the bears resting period, coming ahead of them resuming the selling pressure. As a result, ADA/USDT being forced to trade at its lowest level at the time of writing, since 28th December.

Yoroi – The Cardano Wallet

EMURGO’s Yoroi wallet has now been released, and has initially become available on the Google Play Store for all Android users.

This release is marketed as a simple and secure way of storing ADA. The application facilitates ADA transactions at fast speeds for users. Private keys of the user wallets are only stored locally on the user’s device. The data is further secured by a form of encryption with a wallet password. Private keys are not stored on any centrally-hosted servers. According to the official EMURGO website, they say the wallet is “secure, fast, and simple”. Furthermore, the wallet supports four languages: English, Japanese, Korean and Russian.

Technical Review – ADA/USDT

ADA/USDT daily chart.

Given the pick-up in downside momentum, eyes must now focus on the coming key areas of support. ADA/USDT bears are in proximity to a big test of $0.035500: this is an important level of daily support. It was last in use between 27-28th December, before bouncing and continuing its trend to the north, at the time. This level is critical because it is just one barrier ahead of a punishing fall back down to the December 2018 and the year low area. Lastly, a complete wipe out of the December gains would be seen, which would be once again the bears selling rallies.

Furthermore, the above-detailed low of 2018 was the so-called bottom for ADA/USDT. A tandem bounce was pretty much seen across the entire cryptocurrency market. This was observed from the second week to mid-December. Should the bears manage to turn up the pressure south, then it could open the door to a stronger wave of FUD. The price was already trading within the abyss down at those lows, and this cannot be ruled out again.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.