Cardano Price Analysis–Oct 3
Even at the back of supportive Cardano development, ADA prices are relatively unmoved and relatively stable. Though bulls are technically in charge, the hype element could prove deflating for buyers especially if ADA prices fail to close above 9.5 cents in coming days. All in all, 12 cents is an important resistance line as it is a breakout level of early August bears. Considering the candlestick formation– with tapering volumes, we suggest taking a neutral stand until after there are strong moves above key support or resistance levels.
Latest Cardano News
There is a lot of optimism around Cardano as a smart contracting, duo-layered platform allowing for superior functionalities eclipsing those of Ethereum. Still, Cardano is a theoretical project riding on expectations.
Unfortunately, blockchain based platforms are notorious for fueling speculation promising heaven in the run-up to launch before collapsing spectacularly after the investors understand the real value proposition of the platform. We have seen that play out first in EOS after raising $4 billion in their year-long ICO. It was soon followed by Tron airdrops and developer offers. TRX prices fell shortly afterward. The launch of their TVM and Project Atlas didn’t help either.
In my view, the excitement around price is mainly because of the hype around milestones being met or updates being made. Well, tomorrow there will be a major update on the Cardano’s Road Map. For Cardano supporters, this comes a few days after Yoroi and ADA Smart Cards—this was launched yesterday and development team have their ADA cards pre-loaded with 1000 ADAs. Unconfirmed reports say the card will be issued out officially by end of the year—and Cardano Rust Project.
— SY 金胜延 (@seungyeonkim) September 30, 2018
Yoroi, as described, is a Chrome extension light wallet that isn’t bandwidth demanding and can be synced with Daedalus—a full node wallet.
Today is a big day: we released Yoroi on the mainnet! Users can send, receive and store ADA on a web wallet that is fast and secure. Are you as excited as we are?! #iohk #EMURGO #Cardano #ADA @InputOutputHK @Cardano @IOHK_Charles https://t.co/5HiJRitBkR
— Yoroi wallet／ヨロイウォレット (@YoroiWallet) October 1, 2018
The Rust Project, on the other hand, is an open source project that links up developers with tools needed to innovate on the platform. The primary programming language will be Rust but there is support for C and Java.
Here is a quick video on our latest release, the Cardano CLI in Rust https://t.co/FCInjytaYB
— Charles Hoskinson (@IOHK_Charles) October 1, 2018
Cardano Price Analysis
Price wise, ADA’s correction has been extensive, to say the least. As a matter of fact, ADA prices sank 110% from 2017 highs meaning not only did they completely reverse 2017 gains but melted past the coin’s all-time-lows at 7 cents.
At the moment, there is a recovery and backing the double bar bull reversal pattern at around the ATL are high volumes and pure hype. Though the hype has backing from Fibonacci retracement rules, should there be a recovery, then it’s unlikely for prices to test the 23.6 percent mark at around the $1.1 level.
Of course, we cannot completely discount that from happening but it will take a long time—perhaps after Voltaire. Linking that to price action, it appears that buyers have a stand to recoup this year’s losses. For that to come to pass then we might see gains above 12 cents but expansion could be fast-tracked if there are strong gains above 9.5 cents or Week ending Sep 23. Note that we recommend conservative traders to initiate longs only when there are solid gains above 12 cents. Before then, we recommend taking a neutral stand.
For aggressive traders to take long positions then buyers must build enough momentum and trend in the direction of Sep 27 by closing above $9.5 or Sep 23 highs and the minor resistance trend line capping gains in the last two months from early August.
If not, and there is consolidation or sells, then the 7 cents mark should provide support. However, any dip below 7 cents or ADA’s ATLs is bearish and is inviting for traders selling on every pullback retesting the break out level.
Disclaimer: This is not investment advice and views represent that of the author. Do your own research before making an investment decision.