Cardano Price Analysis: ADA/USDT Vulnerable to Another Hard Fall
- Cardano’s Charles Hoskinson provided some insight on timing for the 1.4 update and more.
- ADA/USDT, given market conditions and technical price structure, is subject to another break lower.
Cardano’s ADA is in just as much trouble as every other cryptocurrency, given the strong and very stubborn bear market. There still appears to be room for further falls. This being despite the latest Cardano foundation’s fundamental developments looking promising. Following the recent internal reshuffle, the foundation has announced notable progression of its 1.4 highly anticipated update. Nevertheless, ADA/USDT remains vulnerable to another sharp drop.
Cardano 1.4 Update
Recently Charles Hoskinson, CEO of IOHK and founder of Cardano, hosted an unexpected ‘AMA’ – Ask Me Anything – on YouTube. He covered some commentary on what was going on with the Cardano 1.4 update, the Daedalus wallet, project Shelley, Icarus and much more.
Cardano 1.4 update will be acting as the foundation for the new wallet’s back-end system. Mr Hotkinson provided some details: “The update 1.4 for Cardano is coming along well and we’re in regression testing right now. We’ve had a few regressions but nothing significant is found yet and it’s a lot of new code. There has been a huge amount of refactoring on the core, and we’ve found new database solutions, so we’ve gone from lots of storage to little storage and become much more efficient”.
He also gave some idea on timing: “The update won’t be taking much longer, I’d say a few more weeks and hopefully we should have the update 1.4 release by end of November or early December. And it’s the most significant update we’ve ever made to the Cardano ecosystem.”
Technical Review ADA/USDT
Firstly, looking at the daily time frame, the price is very much within oversold territory. It took a minor bounce, after the RSI touched a low of 18; at the time of writing, the RSI is sitting at the 22 level. This comes after ADA/USDT took a serious beating by the market bears. The price has been moving within a horizontal wedge pattern, since the back-end of September.
On 14th November, the bears managed to force a breakout to the downside, which first saw the price moving to its lowest level since 18th September. The selling pressure intensified following this technical move. ADA/USDT has since dropped almost 40% from the breach on 14th November. Despite the price well into oversold territory, the shorter time frame indicates of another move to the downside.
Observing the 4-hour chart view, price action over the last two sessions has formed a bearish pennant structure. Near-term support is seen just below at $0.04600, which if breached could be catastrophic, as this fall is very much unknown territory. Resistance to the upside is seen just ahead at $0.04770.
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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