Cardano (ADA) Technical Analysis – Will the ADA/BTC Pair Resume the Bull Run?
The ADA/BTC trading pair has been on a loop since its yearly peak of 0.00001591 BTC on July 26th. A lower high movement was created, limiting the assets under a descending trendline.
The pair also dropped below the 50 moving average in the 12-hour range, a move that strengthened the selling pressure in August and September. At the time of the press, ADA/BTC is wobbling at 0.0000078 BTC, following a deep bounce from short-term support set at 0.00000745 BTC.
Cardano Foundation Hires Blockchain Experts to Prepare for Goguen
The Cardano Foundation (CF) revealed in an announcement made on September 21st that it has hired two world-class specialists ahead of the crucial Goguen era. A statement issued by Bakyt Azimkanov, the Global PR and Communications Director at CF, said that Frederik Gregaard will become the first chief executive officer of the organization, while Eva Oberholzer will be CF’s inaugural head of growth.
Goguen is a term used to refer to the Cardano network period to a completely decentralized protocol. Cardano’s swift will come with support for smart contracts, therefore, becoming a potential ‘Ethereum killer,’ as it is already called.
The development follows the launch of Shelley, a new blockchain protocol that enables users to stake their ADA tokens and earn rewards.
ADA/BTC on the Point of a Descending Wedge Breakout
A descending wedge is approaching a breakout on the daily chart – the continual reversal from the support mentioned above is emphasized by the Relative Strength Index (RSI).
If the indicator shows the oversold and sustains the uptrend towards the midline, the ADA/BTC trading pair will ultimately breakout from the wedge and then switch the focus to the major 50-day EMA at 0.00001 BTC.
ADA/BTC Daily Chart
The TD Sequential Indicator recently depicted a buy signal in the 12-hour period, adding weight to the expected breakout. The positive formation appeared after a red nine candlestick, and an increase in buy orders will confirm the bullish picture, more so if the pair closes above the short-term resistance at 0.000008 BTC.
ADA/BTC 12-hour Chart
A peek at Cardano’s on-chain metrics, more so into the new addresses appearing in the network, might suggest that Cardano is on its way to resuming the uptrend. Even though the number of new daily addresses has maintained a downtrend since earlier this month, a spike on September 21st implies that a rebound is feasible.
The number went from 4,170 a day to 5,950, which shows a 30 percent growth. If the uptrend in the network growth is continued in the next weeks, then Cardano can easily start to rally.
New ADA Addresses Join the Network
The ADA/BTC pair has a buy signal in both the daily and 12-hour charts, but the resistance at 0.000008 BTC is not yet prepared to give the bulls an easy pass for earnings targeting 0.00001 BTC. We also have to wait for a buy signal on the weekly chart before betting the ranch on the ADA/BTC breakout.
ADA/BTC Daily Chart
The Moving Average Divergence Convergence (MACD) hints that the price drift will not be rapid, at least for now. The indicator has just found bearing following a prolonged move into the negative zone.
In addition, a bearish divergence from the MACD suggests that bearish pressure is still on. If short-term support at 0.00000745 BTC withers, the ADA/BTC pair may extend the bearish move further down.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.