While Bitcoin (BTC/ETH) was 8 percent down and Ethereum (ETH/USD) was 9% also in the red compared to last week’s close - Cardano native token ADA (ADA/USD) was trading 4% lower than last week and only a touch above its strong support levels of $2.20-$2.25 at the weekly close Last Sunday, so essentially around levels similar to those that were witnessed during the week leading up to ‘The Greatest Cardano Event’ this year and arguably one of the biggest virtual events in the history of the whole crypto-industry. There were also 38 in-person, community-led meetups happening across six continents during the Cardano Summit, and a few dozen hours of speeches from 7 different categories including: Adoption, Community, Utility, Governance, Impact, Cardano World and Catalyst).
We enjoyed a local peak of $2.45 (another lower high in this downtrend unfortunately) just when Charles Hoskinson was giving his opening Keynote Speech. So, what did we hear, what did the Cardano crowd get, and was it all up to the over inflated expectations that I happened to observe especially in some Cardano online groups of enthusiants/investors? In one word: Yes, the Cardano Summit 2021 has absolutely delivered some great content and a host of information and announcements to give us a clue about the future direction of Development of Cardano.
The most obvious and logical partnership, that finally materialized this last weekend, was in my humble opinion the one with Chainlink (LINK/USD). Founders of Cardano are going to be more than happy to snap up some of that hot Centralised and Decentralised Finance Cake.For this purpose the Cardano token is going to need a dependable provider of real-world data to be transferred and integrated on the Cardano blockchain in order to be able to run stable services on their native network. Needless to say Chainlink is the industry leader in exactly this side of the blockchains’ functionality. Their own ecosystem boasts over 800 integrations with different projects, institutions, apps, dapps, etc and nearly half of these are DeFi). Chainlink is currently 15th biggest crypto by marketcap (LINK’s Marketcap: $10.7 billion), and it certainly is uplifting to see two of the biggest alts collaborating.
Another big announcement turned out to be one that will potentially involve 8 million subscribers of one of the top Fortune 250 corporations- DISH (DISH in 2020 announced acquisition of Boost mobile network with 8million active clients. The company itself has collaborated with none-other than the Almighty Amazon (plans for 5g integration between the companies), so the recently circulating gossips about the allegedly imminent partnership with Amazon might have been less than accurate, but also not completely ungrounded. All these announcements and more, including the stablecoin COTI just couldn’t push the price out and above the $2.5 mark. On the daily ADA (ADA/USD) has evidently been stuck inside of this nearly four-weeks-old Descending Triangle. The descending path has originated from the ATH on 2nd Sep 21, through so-called ‘Buy the Rumour - Sell The News’ situation, where the selling pressure on the day when the smart contracts were introduced (12th Sep 21) managed to drop the price towards the last and most significant abundance of support in the range between $2.10 all the way down to $1.95. Below this mark there is a steep cliff and lots of bad bad news if this is the scenario that ends up occurring.
My best advice and an idea to consider for all the swing traders like myself would possibly be to wait for the price to close a few 4-hr candles below $1.95 and short the thing all the way down to $1.50-$1.55 range. If on the other hand, ADA’s upcoming inevitable hype during the week is enough to push the price upwards in order to break above the upper trendline and also above the 50-day Moving Average (currently around $2.46) and ultimately the psychologically important level of $2.50- then we could just see continuation of the wild price discovery phase that had just over three weeks ago catapulted the Cardano ADA’s price action well above the $3 mark (2nd Sep 21 - $3.10). The levels between $2.5 and the ATH have not been traded much, so in my eyes at the moment at least, any price above $3 does not seem as distant any more when you consider the exciting inflow of partnerships with industry leader companies: both real-world and blockchain getting on board.
Price-wise, if the price insists on being stuck inside the Triangle all the way down to the apex, we will continue to see more kind of a sideways trading action with decreasing volatility for the next up to 10 days (or until 8th Oct 21), but in all likelihood there will be a solution of this pattern sooner than this, it could frankly happen any day. And there should be fireworks too with at least a 25% move expected by many TA traders. If the break was to happen to the downside, there possibly could be an accumulation window open around $1.5-$1.55 (between -20% and -30% correction worst scenario). Only my thoughts and ideas, never financial advice.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.