BACKGROUND & NEWS

Cardano (ADA) has been one of the most hyped projects since its inception. Standing on the number 9 spot according to market cap with a total capitalization of over $2.2 billion, the project that is lead by the IOHK research team is aiming to dethrone Ethereum and EOS with its features. The PoS based network will offer a unique approach to scalability and secure smart contracts.

The Cardano test-net is on the way for a release, that will already include the IELE Virtual Machine V1 and live smart contracts. Currently the team is working on several desktop wallets/clients and optimist block storage as well.

The next roadmap update will follow in 10 days.

Charts

The price of ADA has broken out of a multi-month declining trendline that has been lasting since May on the ADA/BTC chart. After re-testing the trendlike on the daily, we have formed a steep rising wedge, which indicates us that the price will correct before moving on wards.

The yellow box shows us a historical bottom / possible accumulation zone, where 1400 sats labels the top of the zone.

The bull case is a break on the wedge, retest of the previous multi-day accumulation zone and a bounce towards the 1400 barrier. When breaking 1400 our mid-term targets would be around 1700 and 2000 sats.

The bearish case would be when 1230 breaks during the consolidation of the rising wedge, in this case we could spend further days or weeks in the accumulation range before heading forward.

A possible MACD bullish cross could show us a good indicator for the bounce from 1230.

The ADA/USD chart shows us a break of the same trendline dating back from May followed by a retest and a bounce. Rising volumes are a good indicator that interest in the market is back, but a correction is not impossible on the short-term.