Technical Analysis and Market Entry: ADA/USDT the Bulls Set Sights on Recovery as Hoskinson Speaks Up Cardano 

Cardano
  • ADA/USDT is laying the foundations for a breakout to the north, as the bulls set up for a recovery.
  • Cardano founder Charles Hoskinson was recently speaking highly of foundation’s prospects, in an AMA session. 

ADA/USDT: Recent Price Behaviour 

Cardano’s ADA is showing promising signs of a near-term breakout to the upside, as the bulls push for a recovery. The price, like much of the market, had fallen victim to some harsh selling which had commenced in June. ADA/USDT was trading up at heights of $0.10000, before entering a stubborn bear market. It had made strong progress from the start of 2019, having been at depressed levels of $0.00300. However, ADA has since returned to the pre-2019 bull run levels. 

There are signals that the selling pressure is looking to come to an end, given the recent price stabilization. Price action has been narrowing, moving within consolidation mode from 18 December up to 5 January. At the time of writing, ADA/USDT bulls are pressing for a breakout of the recent three-week range. The high of this was seen at around $0.03450 down to a low of $0.032800. 

ADA/USDT daily chart.

Promising Commentary from Charles Hoskinson

The CEO of IOHK and founder of Cardano Charles Hoskinson, was recently speaking within an AMA session, who noted that ADA would be the most predominant force in the cryptocurrency space by the end of 2020. He is also expecting it to become a true social operating system.

He detailed that with the launching of its much-awaited ‘incentivized testnet,’ the team have been able to learn much about stake pools. Additionally, learning about the business of maintaining a cryptocurrency while creating stability.

Hoskinson said during his AMA:

We are especially interested in investing resources at IOHK, and our partners at EMURGO and the Cardano Foundation are investing a lot of time to make sure that we fully understand. And as we exit 2020 and we go throughout the decade this is something we do continuous research in and the better we get, the better the feedback loop becomes, the faster we can grow and get to those billion users and become a true social operating system that is beneficial to everyone in the world.

He further added that three crucial things need to be aligned for Cardano to “displace” Bitcoin and achieve the coveted number one spot, which are; commercialization, incentives, and technology.

Trade Recommendation 

Given the promising signs of a range breakout, further moves to the north are likely. Entries for a long position would be favourable upon a daily candle closure above the noted range high, $0.0345000. Targets to the upside; $0.040000, $0.0415000 and then $0.0445000. Stops to be placed at $0.030000. 

ADA/USDT weekly chart.

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.