Technical Analysis and Market Entry: Cardano’s ADA Looks Set For Another Drop
- Cardano’s ADA is moving within consolidation mode, as price action points to another potential drop south.
- ADA/USDT over the last nine sessions has formed a bearish pennant structure.
ADA/USDT: Recent Price Behavior
Cardano’s ADA within recent trading has seen much narrowing in terms of price action; conditions are tight. The range-bound behaviour came after a heavy fall between 19-24 September, dropping some 30%. ADA/USDT has been forced to trade at the lowest levels seen since February, as the bears maintain firm control of the trend.
The progress that was being made by the bulls in the first half of 2019 was very promising. ADA/USDT started the year down at depressed levels of $0.038000, picking up much momentum to the upside. The price went on to rally some 155%, moving to heights of $0.105500, which was the highest seen since August 2018. The buyers, however, ran into a huge area of supply, which was the kickstart of the current stubborn bearish trend.
ADA/USDT has been falling for the last fifteen weeks, having lost as much as 65% within the noted period. At present, there is a lack of signage for a change in the direction. The price is heading towards a big retest of the 2018 low area. Should the price fail to find stable footing down at this bottom, then it could prove to be very punishing.
Cardano Partners with Major Sneaker Brand New Balance
Cardano was recently reported to be partnering with major sneaker brand New Balance, to help combat counterfeiters. It will authenticate the company’s premium line of training shoes. Cardano will produce blockchain-based data that consumers and retailers can trust, adding value to products and solving real-world problems of physical goods.
CEO of IOHK Charles Hoskinson, the development company behind Cardano, commented on the announcement:
It provides a lot of things to New Balance that they’re really struggling with. Last year New Balance confiscated around 25 million pairs of fake shoes. Authentication is a very expensive proposition for a bunch of brands. What we can bring to the table is not only a very better way for them to accommodate this but also potentially create a marketplace.
Given the earlier described bearish pennant structure, further moves south are still eyed. In terms of targets; $0.028000, $0.025000 and the finally $0.020000. Entry would be around the current market price, as it trades within the pennant. Stops to be placed just above at $0.040500.
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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