Despite Bitcoin’s stagnation, Cardano (ADA) has performed extremely well over recent weeks.
Data from crypto research firm Messari shows that the leading altcoin is up 150% since the start of the year. This is a much better performance than almost all top-50 cryptocurrencies, save for a few outliers in the DeFi space.
Cardano vs. other smart contract cryptocurrencies since the start of 2020. Chart from Messari
A full-time trader, however, thinks that ADA’s outperformance won’t last for long. He shared a chart indicating that the cryptocurrency has formed the same bearish signal last seen at Cardano’s 2019 peak.
Cardano’s Bullish Trend May Not Last For Long: Trader
A trader shared the image below on July 1st, noting that Cardano’s performance charted against Bitcoin is forming a bearish divergence. The analyst’s indicator is trending lower while prices trends higher, suggesting underlying weakness:
“The reason I’m building the ADA short here. If we invalidate the divergence I’m happy to step out the way. Until then I’ll continue to slowly build this position until the div confirms, at that point I can ramp up,” he commented on the chart.
The divergence that has formed is especially pertinent as it formed prior to ADA falling ~75% against Bitcoin from Q2 2019 to Q4 2019.
Cardano (ADA) analysis by full-time trader Cold Blooded Shiller (@ColdBloodShill on Twitter). Chart from TradingView.com
Buy the Rumor, Sell the News?
ADA’s extreme outperformance over recent weeks has largely been tied to the asset’s underlying fundamentals.
As of the time of this article’s writing, the underlying Cardano blockchain is going through what is known as its “Shelly” upgrade.
Shelly is a phase of the blockchain’s development that will increase its performance while optimizing for decentralization. This will be done through a Proof of Stake system. As the Cardano Foundation explains:
“Shelley will also see the introduction of a delegation and incentives scheme, a reward system to drive stake pools and community adoption… Come the end of the Shelley era, we expect Cardano to be 50-100 times more decentralized than other large blockchain networks.”
With ADA rallying off that implementation, the cryptocurrency could see a “sell the news” drop afterward. This is similar to what happened with Bakkt and Bitcoin in 2019 and the CME/CBOE futures rally in 2017.
Cardano’s Fate is Tied to Bitcoin
In some senses, the fate of ADA’s price trajectory is tied to that of Bitcoin. After all, Coin Metrics data shows that the two cryptocurrencies have a positive 180-day correlation of 0.84.
Fortunately for Cardano bulls, analysts are once again becoming optimistic about BTC.
As reported by Bitcoinist, Glassnode CTO Rafael Schultze Kraft observed that Bitcoin’s on-chain trends are stronger than they have been in months. He observed that the number of hourly new BTC addresses reached a two-year high while the hourly count of transactions reached a 10-month high.
There’s also the simple fact that more than 62% of all BTC hasn’t moved in a year.
“Bitcoin 1yr HODL new ATH!! We have reached a new all-time high, with 62% of bitcoin not moving on-chain for at least 1 year. Strong hands from hodl’ers! Such high levels of HODL’ing have been present at the start of previous Bitcoin bull runs,” on-chain analyst Philip Swift recently wrote in regards to the image below.
Bitcoin 1 year+ HODL Wave indicator from on-chain analyst Philip Swift (@PositiveCrypto on Twitter)
Featured Image from Shutterstock
Price tags: adausd, adabtc
Charts from TradingView.com
Cardano (ADA) Is Forming the Signal That Preceded a 75% Bear Market: Analyst origin »
Market dips often separate casual traders from savvy investors, and right now, the spotlight is on altcoins with real potential to rebound and outperform. Cardano (ADA) remains a trusted choice, admired for its strong blockchain infrastructure, scalability, and active development community.
The crypto market saw sharp price swings this week, with several top projects losing ground after a $1. 7B liquidation bloodbath. Cardano (ADA) fell by more than 10%, erasing recent gains and sparking debate over its long-term potential.
Among the top altcoins, the Cardano token has been on a rather severe decline lately. ADA faced massive resistance at $0. 95, and has since been in correction mode. Remittix will be taking advantage of the lull in Cardano’s development.
Key Takeaways
Why are traders optimistic about ADA’s breakout?
ADA’s trading volume and market cap are surging, which could fuel a sustained rally toward $1. 20 resistance.
What signals cautioThe post Cardano targets $1.
Key Takeaways
Cardano targets $3. 50, driven by the Voltaire upgrade, booming DeFi, & whale buys. Discover the key technical analysis & risks facing the ADA rally.
Cardano [ADA] is stucThe post Cardano's $3.
Cardano (ADA) is currently experiencing a sharp price decline. It has dropped seven percent in twenty-four hours. This decrease is happening despite its weakening correlation with Bitcoin. Technical indicators are now signaling more potential losses ahead.
Analyst Ali Martinez says whales accumulated 150 million ADA in two weeks as Cardano price holds near $0.84 and traders eye $0.85 support and $1.00 resistance.
Key Takeaways
Cardano [ADA] broke $0.93 with support at $0.51, while Open Interest hit $1.82 billion. Yet overbought RSI and bearish CVD raise doubts. Will liquidity near $1.15 spark continuation, orThe post Cardano's rally intact! - But THIS could stall ADA's $1.15 hopes appeared first on AMBCrypto.
Cardano (ADA) had a strong week, gaining nearly 20% and pushing close to the $1. 00 mark. The token is now trading just under that key psychological level, and one chart signal could bee interesting for traders.
The Cardano price prediction is causing ripples since ADA is gunning for $4 despite a minor setback. Meanwhile, Remittix (RTX) is also gaining traction with a successful presale of being close to reaching $20 million.
Cardano price has been a bit unstable lately, but many long-term holders are still confident. After dropping to around $0. 74 following the U. S. Federal Reserve’s decision to hold interest rates steady, ADA has recovered slightly and is now trading at about $0.
Cardano is up over 13% in a single day, but a hidden bearish divergence in RSI hints at a possible short pause. Still, low Age Consumed and a healthy MVRV ratio show that the ADA rally may have more legs to run, especially if the $0.
Cardano has surpassed 1.3 million staking addresses, marking a major milestone in the network’s growth. Following the rise, Cardano (ADA) is now one of the most actively staked blockchain networks, according to a June 16 update on X by Cardano…
Cardano may be nearing a bullish reversal as it forms a falling wedge pattern on the daily chart, a structure commonly associated with trend reversals. According to data from crypto.news, Cardano (ADA) was priced at $0.6404 with a market cap…
ADA whale wallets now control 35.62% of the supply, but remain underwater.
Will whales hold their ground or start trimming to break even?
Cardano [ADA] isn’t getting much love from the whaThe post Is Cardano's $1 target a stretch? Why a breakdown could be near appeared first on AMBCrypto.
Cardano’s price is under pressure at $0.65, with key resistance at $0.66. If ADA fails to break this level, a decline to $0.60 is possible. Watch for a potential rebound if $0.66 holds.
The post Will Key ADA Holders Decide to Sell After Cardano’s Weak Showing? appeared first on BeInCrypto.
Cardano long bias remains strong as Spot Taker CVD stays bullish.
Liquidation clusters near $0. 72 and declining funding may trigger volatility on either side.
Cardano [ADA] continued to tradThe post Cardano: 4 signs of a break below $0.
Cardano (ADA) prices are oscillating below 10 cents Shelly is the Reward Era. Cardano is right on track, building towards Voltaire Shifting from Byron to Shelly, Cardano is firm on their roadmap.
Cardano (ADA) is up 7. 3 percent The path towards complete decentralization continues through Shelly TestNet Shelly TestNet is live. To the end, Charles Hoskinson is in Israel as he waits for feedback from the country’s developers.
ADA down 2. 1 percent Shelly TestNet set for June Focus is on Shelly and what it brings to Cardano: Decentralization. Test Net said to be this month. According to commentators, its success could either mean success or failure for IOHK and Charles Hoskinson.
Cardano price stable but bullish Development and consequent release of Cardano 1. 5 test-net positive Average volumes low, pumps must be accompanied by volumes above 210 million Project Shelly is on the horizon thanks to Cardano 1.
Latest Cardano News The good thing about Cardano is their regular update which in turn gives a clear picture on the development progress of Byron and Shelly. Days after Michael Person resigned and Paul Schmid given the task of leading the foundation and promoting their peer-reviewed platform and technology, ADA prices have been on a.
