Technical Analysis and Market Entry: Cardano’s ADA May Have to Give Back All of 2019 Gains
- Cardano’s ADA remains under heavy pressure from the market bears, dropping around 58% within the past nine weeks.
- Despite the ADA price falling, there is much for the Cardano community to be excited about.
ADA/USDT: Recent Price Behavior
Cardano’s ADA remains weighted to the downside following a hard bout of selling which came into play late June. The price had achieved heights of $0.1070, which was the highest seen since September 2018. ADA/USDT ran into a known area of supply; it runs from $0.1050 up to $0.1150. The price has not traded above this zone since August 2018, proving the significance of the territory.
ADA/USDT has been falling for the past eight out of nine weeks, losing as much as 58% over the noted period. The price hit its lowest level since March 2018, down at $0.0445, on the path to a full reversal of 2019 gains. In terms of support, the next major area of demand is not seen until the 2018 low area of $0.0300.
Cardano Enters New Partnership to Boost Adoption
Recently, the Cardano Foundation announced a new partnership with Konfidio, as they are keen to boost adoption further. The collaboration should also assist with greater real-world business cases on the Cardano blockchain.
Cardano tweeted last week:
“The Cardano Foundation and Konfidio a Berlin-based blockchain venture studio, have entered into a strategic partnership to enable real-world business use-cases on the Cardano blockchain with corporations, SMEs and governments.”
The focus within the partnership is very much centred around use cases in banking, logistics, pharmaceutical industries and trade finance, with government and public service use cases to follow.
The Chairperson of the Cardano Foundation, Nathan Kaiser, covered ground on Berlin being a substantial “global blockchain center,” and would assist in boosting the scope of the partnership. He added that the collaboration would impact the popularity of the Cardano Foundation in Germany and Europe.
“Our strategic partnership with Konfidio is yet another tangible step towards promoting and advocating Cardano and, more importantly, driving its real-life use cases.”
Cardano 1.6 Launch is Imminent
Late last week, the founder of Cardano Charles Hoskinson hinted that the 1.6 update is very close. He tweeted:
“We are shipping the 1.6 Cardano update over the next few days. Send me some screenshots of the new Daedalus and let me know if you like it. A lot of great work went into this release and I’m extremely proud of the team.”
ADA/USDT appears vulnerable to one last potential fall, and set for a retest of the 2018 low area. The downside target would be $0.03000, with stops placed at $0.05700. Upon a successful retreat back down to the noted zone of interest, bias will shift back to the upside. Should buyers fail to be found, then a fresh wave of selling pressure could be sparked on FUD due to the price moving into unknown territory.
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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