Cardano Price Analysis–Oct 26
There are hints of higher highs in lower time frames and at the back of weak to near “dry” fundamentals, we recommend a neutral stand on price until after prices edge past 9.5 cents in line with our previous Cardano (ADA/USD) price analysis.
Latest Cardano News
Unfortunately, there is a lot of hype in the blockchain and cryptocurrency space. Before governments from around the world began cracking down on ICOs, imposing taxes of crypto capital gains and even threatening to classify some as securities subject oversight, the space was vibrant and it was normal business for blockchain based projects that promise to deliver value and offer practical solutions to bugging problems to raise million in hours and sometimes minutes.
But, now everything is slow. Bears are ravaging while the heavy-handedness of governments is paying off as investors become through only investing –by sometimes circumventing regulatory barriers as in South Korea–their hard-earned capital in worthy projects as Algorand. It’s really interesting because despite a sliding market and general caution, the blockchain project managed to raise $62 million and the project’s founder Silvio Micali got some airtime from Charles Hoskinson.
Congratulations Silvio, we finally have some real competition https://t.co/fI3FzcwIL3 🙂
— Charles Hoskinson (@IOHK_Charles) October 24, 2018
In a tweet, the maverick Cardano founder–who many known him for his thoroughness, attention to detail and constructive criticism, complemented the project saying, at last, they have found a competitor as he took a subtle swipe at other smart contracting platforms as Ethereum and EOS.
Algorand’s intention is to offer an alternative to developers and business keen on building their businesses in a “real blockchain”. They endeavor to solve the three blockchain trilemma of scalability, decentralization, and security. Like Cardano, they shall take a more theoretical approach prioritizing quality as they plan to ensure a perfect PoS mainnet once they launch.
Cardano Price Analysis
A simple trend line between this year’s highs and recent highs is negative sloping pointing to underlying bears. And on the weekly chart, it’s evident that bears are in control despite expectations from the community. It has been made worse by CoinBase failure to support ADA, the platform’s native coin and instead of listing ZRX, an ERC-token.
Still, like the majority, we retain a bullish outlook and with our last Cardano price analysis valid, we shall take a neutral stand until after there are convincing gains above 12 cents—previous support now resistance. Conversely, losses below 6 cents, the new ATL for ADA could trigger a wave of sell pressure pushing prices to new all-time lows—which we are yet to figure out of lack of reference.
The thing is, as long as prices are trending inside week ending Sep 9 high low bear bar, sellers are in charge. That’s why it’s important for bulls to build up momentum and confirm market expectations by rallying above 9.5 cents and 12 cents triggering long-term buys as laid out in our last ADA trade plan.
In the daily chart, momentum and volume are tapering. Most notable though is yesterday’s bullish pin bar hinting of support in lower time frames. Before we suggest lower time frame ramp-up of ADA, it’s imperative that buyers edge past the minor resistance trend line and 9.5 cents in line with our last ADA trade plan. Once that prints, bulls can buy on dips with first targets at previous support now resistance at 12 cents. Otherwise, dips below Oct 15 lows could ignite a wave of sell pressure driving prices below ADA’s ATL and into price oblivion as aforementioned.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.