Cardano (ADA) Technical Analysis: Will ADA Move Ahead of IOHK Summit?
The inaugural IOHK summit is scheduled to take place in just 2 days time, in Miami USA. The event is expected to draw a crowd of blockchain experts, developers and investors from around the globe to hear what the future holds for the Cardano network.
Former Ethereum Co-Founder and CEO of IOHK, Charles Hoskinson, will deliver the opening keynote speech, and has announced that he will unveil Cardano’s new 2020 roadmap, along with updates on Shelley - the decentralization phase of Cardano’s development.
Cardano Price Analysis
ADA has been accumulating along a key support level at $0.0835 for the past 4 days, after failing to break above the 0.382 fibonacci level at $0.0924 (red line). Low volatility has pushed the price action sideways as both buyers and sellers wait to see what emerges from the IOHK summit.
If the event is a success, it is likely that bullish traders will rally off the current support and push on to test the 0.382 resistance. From there, we could see the breakout extend towards the psychological $0.10 mark. If candles are able to close above this level it could provide a strong support area for the asset going forward, and will set a new 6-month high for ADA.
If the event fails to captivate the audience, and the wider community, then we could see traders exit out of the ADA market in search of better performing altcoins elsewhere. The 0.236 fibonacci level at $0.067 below would likely to become a key support if this happened.
Looking at the EMA lines however, we can see that bullish momentum is still growing behind ADA overall - with the 50 EMA line (blue) continuing to close in on the 200 EMA (green).
Once these two lines converge, it will create a ‘Golden Crossover’ which is a very strong bullish signal, particularly over 1D candles. This is generally considered as a sign that a bull market is coming.
Looking at a number of 2H indicators we can see a mixed picture of bearish and bullish signals.
The Aroon indicator, the MACD and the Chaikin Money Flow are all looking fairly positive right now. However, the Parabolic SAR, the Ichimoku and the RSI are not looking particularly promising. This is likely because of the uncertainty over which way ADA will trend once the IOHK summit takes place.
In the next 48hrs we should hopefully see a much clearer trend in the price action, as the event draws closer.
Cardano (ADA) Price Targets
All ROIs are calculated from the asset’s current value at $0.0838.
R1: 0.382 fibonacci level/ $0.0924 (10.26%)
R2: Psychological $0.10 level (19.33%)
R3: 0.5 fibonacci level/ $0.112 (33.65%)
S1: 0.236 fibonacci support/ $0.0675 (-19.45%)