Cardano Price Analysis: ADA Subject to Further Downside, Despite Charles Hoskinson Singing Praises of Progress
- Cardano founder, Charles Hoskinson, said, “Cardano’s future is looking very bright!” in a tweet update.
- ADA/USDT is back within consolidation mode, ahead of another potential squeeze to the downside.
Cardano’s native token ADA remains under heavy pressure to the downside. The pick in momentum lower, which came in November, has seen the price fall over 60%. Putting things into larger perspective, the value has dropped around 98%, from highs on January 1st. ADA was trading at $1.40, before tumbling off a cliff, to the lowest print at $0.0275. This current market sell-off may not be done just yet. Despite the unfortunate large bear market, fundamentals continue to remain very much encouraging for the Cardano foundation.
“CARDANO’S FUTURE IS LOOKING VERY BRIGHT!”
The founder of Cardano, Charles Hoskinson, recently took to Twitter to provide another update on what is going on at the foundation. He said, “1.4 is almost out, testnet has been released, rust Cardano is making epic progress, the Haskell rewrite is underway, plutusfest in a few days, Emurgo is growing and the Foundation will soon reawaken from its long slumber. Cardano’s future is looking very bright!” Despite the positive words provided on the upcoming update for Cardano, nothing at this time can stop ADA from falling.
Technical Analysis – ADA/USDT
ADA/USDT has been falling for five consecutive months, clearly demonstrating the intensity of this current trend. The current drop being observed here is very much uncharted territory, which is likely sparking further panic.
Looking at the daily chart view, ADA/USDT had somewhat stabilized on 25th November from the heavy selling pressure. A small bounce and a form of consolidation was seen with the price’s behavior. The bottom seen on the 25th, around $0.0331, has held right up to the 5th December.
Sellers were very clearly exhausted after that huge November drop. They allowed time to rest, then turned the pressure back on, as seen 5th December. A breakout from the recent bottom came into play. The move was exacerbated to the south, through that initial near-term area of support.
Once again, the price is moving sideways, which is another form of consolidation mode observed. This behavior does still indicate of some vulnerabilities to the downside. When looking at ADA/BTC, the pair portrays there could be another squeeze lower before a solid bounce.
In terms of ADA/BTC, the next major area of support via the monthly chart view is not seen until the December 2017 low. This would still mark another 35% drop, before any firm cushion. Further to the downside, the October – November 2017 low area, which would be 70% further south, is the next target.
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.
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