Market Update: Cardano, ending diagonal coming into play?
Hi traders, today we’re going to look at another cryptocurrency that’s taking the crypto world by storm. Cardano is currently the third largest coin by market cap.
It’s a relative newcomer in some ways. Cardano started in 2015 but has only really hit the mainstream in the last few years. Cardano or ADAUSD, when quoted to the USD, is seeing amazing popularity at the moment like Ethereum as more traders look past Bitcoin for different trading options.
Cardano is a public blockchain platform. It is open-source and decentralized, with consensus achieved using proof of stake. It can facilitate peer-to-peer transactions with its internal cryptocurrency, Ada. Cardano was founded in 2015 by Ethereum co-founder Charles Hoskinson. The development of the project is overseen and supervised by the Cardano Foundation based in Zug, Switzerland. It is also the largest cryptocurrency to use a proof-of-stake blockchain, which is seen as a greener alternative to proof-of-work protocols, (Wiki) a factor in its recent popularity after public concern has been raised around the environmental impact of cryptocurrency mining.
Taking a look at Cardano’s daily chart below. Does the key remain what will buyers do next in the current trend? Price surged last month adding 51.30%. This month things got off to a fast start as buyers added a further 11%. Since the high, we have seen sellers continue to stack weight against buyer numbers. Price sits 9.43% off its September high.
Price pattern-wise we are watching to setups atm. We have a rough ending diagonal in play and an ascending triangle. Price, for now, sits just outside of both patterns but can’t be called confirmed just yet. If we see a new break lower that starts to confirm the diagonal and we have set out Fibonacci retracement points as price remains in an uptrend. Due to the current fast momentum trend, we would be looking at downside to potentially form a higher low and at some stage see the trend resume unless we saw a new lower high set up warning sellers may look to continue the push lower.
If price rebounds today and we see a new break of key resistance, we would be looking at the current trend to possibly continue with resistance potentially seen at Septembers months high if buyers get momentum back on track.