Cardano (ADA) Technical Analysis: Charles Hoskinson Announces ‘Stakepools Are Coming’, Bulls Slow To Respond
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Today Ethereum Co-Founder and CEO of IOHK, Charles Hoskinson, has tweeted to the Cardano community that ‘Stakepools are coming’.
The implementation of Shelley - the next phase in Cardano’s development - is expected to upgrade the network to a fully decentralized and autonomous system. Delegated coin staking is one of the most highly anticipated features to roll out from the Shelley update, and will give ADA holders to chance to participate in running the network as a node and earn ADA for doing so. The eagerly awaited implementation of this feature is expected to drive new bullish support towards the asset and help lift it out of its long-standing bearish performance.
So far however, the market has been slow to respond today to this new update on staking pools, with traders undoubtedly still licking their wounds after yesterday’s heavy sell-off. Prior to the crash, increased buying momentum was able to lift ADA back toward the all-important $0.05 level, where the asset was actually looking promising to finally break through. However, this was short-lived and after a 18% slide in value, ADA is back to where it started hovering around the $0.04 level.
The Story So Far
On the 1D ADA/USD chart we can see that the asset has been range bound between the $0.03650 and the $0.05155 levels, for the last 2 months.
Inside the range there are also two key levels at $0.03960 and 0.04518, which have been strong areas of support and resistance in the past, and could play an important part in determining the price action during the rest of this week.
The Story Now
Right now bullish traders are pushing back against yesterday’s red market, helping ADA already recover 3.3% of its recent losses.
Looking at a number on 1D indicators it seems that the recent announcements from Charles Hoskinson and his team are helping to maintain last week’s momentum somewhat, despite the crypto market shedding $13 billion yesterday.
- There is still a bullish crossover between the 20 and 50 EMA lines.
- The Aroon Up line is bullishly high above the Aroon Down line.
- Parabolic SAR dots are still appearing beneath the price action.
- Momentum on the RSI is starting to move back up into the index channel.
- The indicator line on the Chaikin Money Flow indicator is also starting to return above the zero line.
- On the MACD indicator the 12MA is bullishly above the 26MA line, and both lines are still above the signal line.
- The price action is holding above the central MA on the Bollinger Bands.
Cardano (ADA) Price Targets
At the moment the price action is struggling to break a weak resistance at $0.04295, but once the market stabilizes bullish traders are likely to regain confidence and overcome it.
The first major test will be breaking through the $0.04518 resistance before taking on the $0.05 level. If bullish traders are able to break out of the 3-month long resistance then it could mark the start of a new bullish phase for Cardano.
All ROI’s are calculated from the asset’s current value at $0.04282 (AToW).
PT1: $0.04295 (0.00%)
PT2: $0.04518 (5.51%)
PT3: $0.05000 (16.77%)