Cardano Price Analysis: ADA Propped Up on Announcement Optimism

  • ADA/BTC is enjoying a three consecutive session run higher, as bulls resume the December upside momentum.
  • The Cardano founder Charles Hoskinson has sparked some optimism, tweeting that there is some good news coming.

ADA/BTC remains very much elevated and has been on the rise over the past three sessions now. This is likely being helped on following the Cardano founder, Charles Hoskinson, tweeting and leaving the community on the edge of their seats. He said, “There is some good Cardano related news coming soon.” This seemingly sparked some optimism across the Cardano community, with much speculation within the social media space following this.

Possible Good News from Cardano

There are a host of things that could potentially be announced by the foundation. The project ‘Shelley’ update, which Hoskinson already suggested by the end of Q1 2019, or possibly earlier is highly anticipated. The aim with project “Shelley” is to make Cardano decentralized.

It may even be the Coinbase listing, as the exchange previously released a list of 30 cryptocurrencies which could be added, including ADA. This good news could also be Ledger support, which is something that Hoskinson previously said is being worked on.

Technical Review – ADA

ADA/BTC daily chart. Price action has returned back within the bullish trend.

Firstly, looking at ADA/BTC, the pair has been on the rise over the past three trading sessions now. This coming after some cooling following the high print on the 24th December. A market wide easing lower was observed, on the back of such an explosive run higher. On the 16th December, ADA/BTC had re-entered a bullish trend, gaining a chunky 37% up until the 24th. The bulls are now picking back up after the brief edging lower.

Upside Target Areas

In terms of upside barriers, there are some strong areas in which the bulls will need to break down. The range of 0.00001180 – 0.00001255, where the price faltered on 24th December, is also the 6-7th November high area. A breakdown of this territory should then open the door for a retest of a barrier tracking from 0.00001300-0.00001400. The price had consolidated here between the back end of September up to early October, before falling back south.

Support Levels

Lastly, on the support front, buyers can be seen just below from the current price, in the region of 0.00001050 down to 0.00000950. This has proven to prop up ADA/BTC on several occasions; most recently on the 27th December, briefly in November during the market fall and also back in September. Any failure of the price being supported here, then expect the bears to force a retest of the December low area.

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.