Technical Analysis and Market Entry: ADA/USDT Forms Bullish Pennant Subject To Breakout As Cardano Provide Positive Shelley Update
- The Cardano development team are working on maintaining and improving the Shelley Incentivized Testnet.
- ADA/USDT price action has formed a bullish pennant pattern, subject to a potential breakout to trigger further buying momentum.
ADA/USDT: Recent Price Behaviour
Price action for ADA/USDT since 15 January has very much been moving within consolidation mode. It comes following the strong push to the upside that was observed from 6 January. The price rallied some chunky 26% up to 14 January, before losing momentum. Price behaviour during this current cooling period has formed a bullish pennant pattern. The buyers do have room to potentially breakout of this structure, inviting a further wave of upside pressure.
Shelley Incentivized Testnet Update
The development team at Cardano has been working hard on maintaining and improving the Shelley Incentivized Testnet. They recently introduced a new version of the Jormungandr Node, v.0.8.7, intending to reduce technical debt and ensure a more stable network. It comes as part of their newly established community outreach program.
The substantial success the Shelley Incentivized Testnet has observed since the launch in November has pushed the company to improve its communication. Charles Hoskinson, the founder of Cardano and CEO of IOHK, last month said that the team working on the incentivized testnet would begin issuing weekly updates about the state of the network to stay in touch with the community.
Elsewhere, in this week’s report, the project manager for the Shelley Incentivized testnet, Dimitris Poulopoulos detailed that the network stability remains the number one priority. He said that major improvements in the testnet were already seen with last week’s release of version 0.8.6, as many members of the community reacted positively to the update.
This week’s release, Poulopoulos said, is aimed to improve things further with a new version of the Jormungandr Node—v0.8.7. The release contains network improvements that should both reduce technical debt and ensure a more stable network, he added.
Given the earlier detailed pennant pattern view the daily chart view, further moves to the upside remains favourable. An entry around the current market price, as ADA/USDT trades within the structure. Targets to the north eyed at; $0.053000,$0.063000 and then $0.067000. Stops to be placed below the pennant at $0.039700.
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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