Technical Analysis and Market Entry: Cardano (ADA) – Critical Supporting Wedge Broken
- Cardano’s ADA is within the control of the market bears since breaking an essential supporting wedge structure.
- The price is testing a critical near-term zone, $0.0820 down to $0.0760.
ADA/USDT: Recent Price Behavior
Cardano’s ADA has been under pressure since the back-end of June; the bulls failed to maintain the strong upside momentum that kicked into gear in May. The price jumped a whopping 70% in May, after breaking out higher from a bullish flag formation. Following the noted aggressive surge, ADA/USDT began to consolidate while still moving higher gradually.
The price went on to print another high up around $0.1070; it was the highest level seen since September 2018. ADA ran into a large supply area, which saw that momentum was short-lived. Price action forced a shooting star formation via the daily; as a result, inviting another wave of sellers. ADA/USDT was forced back down within a wedge structure, which had been forming since mid-May.
Bears recently managed to push for a breakout to the downside of wedge via the daily on 30th June. It has since been retested, making room for more sellers to come into play and driven ADA further south. The price at the time of writing is trading a critical near-term demand zone, tracking from $0.0820 down to $0.0760.
Cardano to Help with Crypto Principles
Cardano Foundation has announced it will join Global Digital Finance (GDF), as they are keen to have some influence in developing governance principles for the crypto universe, as per the official announcement.
The GDF is an industry organization that has the role of developing a code of conduct and general principles for token sales, platforms and funds dealing with digital assets. The members of the organization should comply with the set frameworks.
The partnership will involve Cardano participating in several work groups that contribute to the standardization of the rules and regulations for the industry. Predominantly, they will be engaged in dealing with custody, KYC/AML, stablecoin, and security token related issues.
The global marketing director at Cardano commented on the announcement:
“The collaboration between the Cardano Foundation and GDF will strengthen ongoing efforts to create best practices and sound governance policies. Effective policies will help the crypto asset market further develop through establishing robust codes of conduct for the sector amid increasing importance of ethics in the blockchain and DLT industry.”
Should the critical near-term noted zone fail to hold, then there could be a move back down to the $0.0600-$0.0500 price range. Potential buy positions will be eyed here upon this possible correction, where the big bulls came into play in May.
If ADA/USDT can maintain via the daily within the noted zone, $0.0820 down to $0.0760, then buys north could be taken inline with the marked scenarios on the charts below.
Stops upon entry at $0.0600-$0.0500 would be placed at $0.0480; an entry at the current price area would see stops at $0.0700.
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.