Technical Analysis and Market Entry: Cardano’s ADA is Subject to a Fresh Wave of Selling Pressure
- Cardano’s ADA is vulnerable to further downside pressure, giving recent price behavior.
- ADA/USDT remains subject to retesting the low area of 2018/2019, should a critical demand zone be broken.
- The Cardano community is widely anticipating the upgrade of Daedalus this month.
ADA/USDT: Recent Price Behavior
Cardano’s native cryptocurrency ADA has been under pressure for the past seven weeks now. ADA/USDT has dropped over 50% within the noted period, falling from heights of $0.10730 down to current levels at $0.05150. Before the recent downside pressure, as described, the price had hit its highest seen since September 2018 on 24 June.
ADA/USDT ran into a substantial supply region; this is seen running from $0.10550 up to $0.11300. The price has not traded above this zone since August 2018, proving its significance with the hammer blow rejection in June. Given the noted price hit, ADA/USDT has been forced to trade back down at the lowest level seen since March 2018.
Daedalus Upgrade Nearing
Cardano founder Charles Hoskinson recently updated the community regarding upcoming innovations that are set for Cardano. There is much anticipated this month following an AMA session earlier in the week.
Hoskinson provided some insight on the anticipated Daedalus, which is the wallet for Cardano’s native cryptocurrency ADA. The technology is expected to undergo a significant upgrade since its launch. In terms of this forthcoming upgrade, it seeks to enhance the usability features of Daedalus. Furthermore, some issues were raised via community feedback, which will be rectified.
The Cardano founder sang his praises of the Daedalus team for their exceptional engineering. He suggested that he was “super proud of what they’re about to push out.” In total, they have been working on the update for some two and a half months.
“We’re basically moving in the right direction. So I’m very happy, very proud of how quickly the team is moving. What’s really exciting is that we now actually have all these different software teams, five to seven people usually, and they’re cutting releases all the time.”
Bias is now tilted to the downside, after previously detailing some upside potential in the last Cardano article. Markets bears are penetrating the critical supporting demand zone to the downside, $0.06000-$0.052500. A bearish candlestick was produced on 5 August, a gravestone Doji, which would indicate at further downside pressure.
In terms of downside targets; $0.04200-$0.03450 and then the 2018/2019 low area, $0.03000, are the main ones to consider. Stops would be placed just above the current serving demand zone at $0.07000.
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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