Welcome back ADA enthusiasts! The following technical article is going to cover the latest updates on Cardano’s price action.
Fundamentally, the PoE network recently joined the Global Digital Finance group, giving investors a lot of confidence regarding their funds (read more about the GDF membership here). Apart from the announcement, no major releases are scheduled in Cardano’s agenda in the next couple of weeks, but as usual, if anything comes out we will keep you posted! However, there have been rumours circulating of a Coinbase listing in connection with the Shelley upgrade.
The well-recognised project able to ensure sustainability and scalability has lost some ground in the last few days, as its price actions mirrors the status quo of the altcoin market. Market Capitalisation has declined from $2,6 Bn at the end of June, to $ 1,7Bn in the last few hours. Volume, on the other hand, has lost $254 Million in the last weeks, reaching volume levels similar to the 2017 bloodshed.
The daily ascending channel formed since April can potentially save ADA’s bloodshed now. Even though the latest wave of selling pressure hugely affected investors, the $0.065-$0.061 zone may set the tone for recovery.
ADAUSD lost over 30% this week, with price reaching $0.060 during yesterday’s trading session. However, in the last few hours price has bounced significantly from the ascending support highlighted in yellow. Bulls seem to be back in the game, with ADA easily earning 5% since that testing.
Traders are now evaluating two scenarios, the first one contemplates a positive outlook if the daily candle closes above the yellow level and possibly bullish engulfing. If that is the case, next resistance levels to watch are the $0.075 and the $0.103 zone. If the ascending trend line is breached by the bears, the pair will rest in peace. The next important liquidity zones are the $0.057 and the $0.040 support zones.
Please bear in mind that ADA’s price action is highly linked with the status quo of the altcoin market and any major general turndown can push the price back to red territory once more. Proceed with caution.