ADA Uptrend Remains Intact as Price Holds At $0.55 Support

Cardano Uptrend Remains Intact

After pulling back more than 3% on Monday and dropping as much as 9% back from Sunday’s multi-month highs near $0.60 per token, ADA, the native token of the Cardano blockchain, has stabilized at the key $0.55 support area. The cryptocurrency was last changing hands just under $0.56, with some dip buying seemingly offering support on Tuesday.

ADA still looks very much to be in an uptrend that has seen it rally nearly 40% from its July lows near $0.40 per token. To the downside, it has significant support in the $0.52/0.53 area. Technicians are likely to remain confident that an eventual move to the next bullish target in the $0.67-0.69 area is likely in the coming weeks, amid a lack of significant resistance (aside from Sunday’s high) in the interim.

ADA/USD bulls target push higher towards $0.67-0.69 area. Source: FX Empire

If Cardano is to break below the uptrend from the July lows, this could open the door to a swift drop back towards the cryptocurrency’s 50-Day Moving Average in the $0.50 area.

ADA/USD could quickly drop back to $0.50 if it breaks below its recent uptrend. Source: FX Empire

Cardano Founder Hoskinson Says Chances of Vasil Hard Fork Going Wrong Are Low

The chances of something going wrong with Cardano’s upcoming Vasil hard fork are small, the blockchain’s founder Charles Hoskinson said in a video stream via a US crypto conference on Monday. According to Hoskinson, there are just a few so-called “edge cases”, which are anomalies in a system when it is functioning at close to its limits. Hoskinson said that Cardano’s 700 employees were working hard to ensure the upgrade goes ahead smoothly.

Cardano’s Vasil hard fork upgrade, which is set to deliver significant improvements to the blockchain’s capacity and scalability, has been delayed twice in the last two months. It is expected to be finalized and implemented by the end of August/early September.

Cardano at Risk of Profit-taking Induced Drop?

According to crypto analytics firm Santiment, “the ratio of on-chain transactions as profit taking vs. selling at a loss is at its highest level of profit taking since the final week of March”, a possible short-term bearish sign for Cardano. When introducing its so-called “Ratio of Daily On-Chain Transaction Volume in Profit to Loss” back in May, Santiment explained that assets seeing a higher ratio of profit-taking transactions are more likely to experience short-term retracements lower, while a higher ratio of transactions by those in loss positions signals an increased likelihood of a near-term bounce.

Still, Santiment said that “Cardano sentiment is rather positive at the moment”, noting the more than 20% rally in the past three weeks.

Read Full Article


Latest articles

Related articles

Leave a reply

Please enter your comment!
Please enter your name here