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Cardano [ADA] price set to bounce off resistance and head downwards; Here are the important levels to look out for




Cardano [ADA] price set to bounce off resistance and head downwards; what are the important levels to look out for?
Source: Unsplash

Cardano, the tenth largest cryptocurrency on CoinMarketCap had a decent rally over the past few days. The price of the cryptocurrency surged by 133% since December 16, 2018. However, the rally seems to be coming to an end as price candles have formed at the end of the ascending channel/rising channel.

Will the rally continue? Will the rally hit a roadblock and bounce back? If so, what are the levels to look for?


Source: TradingView

The one-day chart of Cardano showed the formation of a rising or ascending channel. This is a bullish pattern, provided a few conditions are met. These conditions include rising volume and divergence between price and other indicators, like RSI.

However, the current channel shows a higher probability of the price breaking to the downside due to two reasons.

  1. The volume is declining after reaching a peak on March 23, 2019
  2. There is a resistance [$0.06925] at the end of the channel

These two reasons are further corroborated by the Relative Strength Index, which was in the oversold zone. This indicated that the price has exhausted its buying momentum and has nowhere left to go, but downside.

Fibonacci Retracement Confirmation

Source: TradingView

After the previous surge in price took place between December 16, 2018, and January 10, 2019, the prices corrected from $0.05245 to a support at $0.03617, which also happened to be closest to the 61.8% Fibonacci level.

The Fibonacci Retracement for ADA in the current ascending channel shows a possible retracement to 61.8%, which also happens to be a support level at $0.04962.


Cardano seems to have exhausted its bullish momentum as it rallied one last time. The volume of Cardano showed a possible move to the downside. The following levels could be a possible correction for ADA if it broke to the downside, i,e $0.04962. Other supports for ADA are at $0.04523, $0.03617, and $0.02720.

The Cardano Ecosystem

There were quite a few updates, ranging from managerial restructuring to exchange announcements in March 2019, all of which could be speculated to have caused a surge in price. The most recent one was the integration of Cardano [ADA] with the cryptocurrency hardware wallet Ledger.

Additionally, Cardano became a founding member of the International Association for Trusted Blockchain Application [INATBA].

Other major updates in the Cardano ecosystem include the launch of the 1.5 main net. The release was part of the concluding stages of the Byron phase of development, including an improved proof-of-stake protocol. This development would ensure better block storage, the inclusion of the Daedalus wallet for Linux, the Cardano testnet, and an increase of Rust tools and other features within the coin’s ecosystem.

Further, the Shelley update, which is yet to hit Cardano is much-awaited and a lot of users and ADA enthusiasts believe that it will help Cardano become more decentralized.

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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.


Bitcoin [BTC] Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021




Bitcoin Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021
Source: Pixabay

With a year left for the highly anticipated Bitcoin [BTC] halving, many expect the price of the top-cryptocurrency to surge prior to May 2020. Analysts have previously opined that three months to one year before the halving does the price of the cryptocurrency move up.

A new piece of research from the cryptocurrency analytics firm, CoinMetrics, suggested that in addition to the precursor pump, Bitcoin [BTC] will reach its “local peak” 18 months after the halving.


CoinMetrics charts the price of the top coin, divided based on the 2012 and 2016 halving, showing a noticeable trend. A little more than a year after the first halving when the 210,001 block was mined, the price of Bitcoin surged above $1,000 for the first time, in December 2013 to be precise.

Next, During the July 2016 halving, the coin was trading at just above $600 and within the suggested period of 18 months, the top virtual currency saw its second peak. On 17 December, the coin reached a never-before-seen high of over $19,700 as the Chicago Futures exchanges embraced the digital assets market.

With the price of Bitcoin over $5,000 for the first time in over four months, and the precursor halving bulls on the horizon, the price could surge. Furthermore, based on CoinMetrics’ inference, Bitcoin will see its third peak, higher than $20,000, by the close of 2021, eighteen months after the May 2020 halving.

The halving protocol was placed in the original whitepaper to thwart inflationary pressure that would arise with more blocks mined and more Bitcoins supplied. Historical charts prove that this objective has been adhered to, with a constant drop in the inflation rate with the two previous halvings.

In 2012, the inflation was over 25 percent and immediately after the miner reward reduction to 25 BTC per block, it dropped to under 15 percent. A bracket between 7 percent and just under 20 percent sustained until the second halving in July 2016.

The second halving saw a decline in inflation rate to under 5 percent for the first time in the coin’s history, which has been maintained till today. CoinMetrics pegs the inflation, at press time, to be 3.8 percent. Furthermore, if the historic trend continues, the inflation rate would drop by more than 50 percent to 1.8 percent in May 2020.

Based on the current market and using a historical outlook, analysts suggested that 2019 will be the year of building the industry while the price effect will manifest next year, with the halving being at the very core. Many believe that institutional interest on the rise and the growing crypto-adoption surge could result in a bullish 2020.

Charlie Lee, BTCC’s co-founder suggested in December 2018 that Bitcoin’s next rally will begin in “late 2020”, months after the halving and would peak in December 2021 at 333,000. However, the precursor to this rise would be a January 2019 bottom of $2,500 which did not materialize.

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