Cardano made another bounce off the ascending channel support, setting its sights back on the top once more. On short-term time frames, this appears to be a complex double bottom pattern and price could break past the neckline at 0.0800 to confirm the climb.
However, the 100 SMA is crossing below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, selling pressure could pick up and lead to another test or even a break below support. These moving averages also line up with the mid-channel area of interest which might keep gains in check.
Stochastic is also turning lower to reflect a return in selling pressure. This oscillator has just made it way down from the overbought area and has enough room to cover before hitting oversold conditions. RSI is also heading south so Cardano might follow suit.
The recent spike in cryptocurrencies has faded as traders are returning their focus back to industry developments. As for Cardano itself, CEO Hoskinson conducted an AMA session to answer questions related to the digital asset and rivals, during which he was asked several questions ranging from the recent IOHK split with the Cardano Foundation to the ADA markets.
Hoskinson emphasized the relationship of IOHK with Hyperledger, citing:
They’re led by Christian Cash and he’s also the head of the IACR and he’s a good guy to have dinner with and he’s one of the world’s top experts in distributed systems. In fact, if you ever take a course on the topic you’re probably either gonna read his book or Nancy Lynch’s book. Nancy’s at MIT.
Responding to a question on whether or not money raised spells success for an altcoin:
It’s kind of funny that the number two cryptocurrency raised 18 million to get where it’s at and the number one cryptocurrency raised nothing. So if you think about that, there is strong evidence in the space – the amount of money you raise doesn’t really have a lot to do with your ability to succeed.
Images courtesy of TradingView
