While Bitcoin (BTC/USD) was down 8% and Ethereum (ETH/USD) was down 9% compared to last week’s close – Cardano’s native token ADA (ADA/USD) was trading 4% lower than last week and just a touch above its strong support levels of $2.20-$2.25 at the weekly close last Sunday, or essentially around levels similar to those seen during the week leading up to the announcement.
Additionally, 38 community-led events took place across six countries during the Cardano Summit, as well as several dozen hours of presentations from seven distinct categories, including adoption, community, utility, governance, impact, cardano world, and catalyst).
We experienced a local high of $2.45 (another lower high in this downturn, unfortunately) during Charles Hoskinson’s opening Keynote Speech.
So, what did we hear, what did the Cardano community receive, and was it all up to the exaggerated expectations I observed, particularly in some Cardano online enthusiast/investor groups?
In a nutshell, yes, the Cardano Summit 2021 gave some excellent content and a slew of information and announcements that shed light on the future direction of Cardano development.
In my humble opinion, the most obvious and logical relationship that ultimately happened this past weekend was the one with Chainlink (LINK/USD).
Cardano’s founders will be more than pleased to acquire a piece of that sizzling Centralised and Decentralized Finance Cake.
To do this, the Cardano token will require a dependable source of real-world data to be transferred and incorporated onto the Cardano blockchain in order to enable the token’s native network to perform stable services.
Needless to say, Chainlink is the market leader in this particular aspect of blockchain functioning.
Their own ecosystem includes over 800 integrations with other projects, organizations, apps, and dapps, roughly half of which are DeFi-enabled).
Chainlink is presently the 15th largest cryptocurrency by market capitalization (LINK’s market capitalization is $10.7 billion), and it is undoubtedly encouraging to see two of the largest altcoins collaborate.
Another significant announcement involved the probable acquisition of 8 million subscribers by one of the largest Fortune 250 companies, DISH (DISH announced the acquisition of Boost mobile network with 8 million active clients in 2020).
The company has already engaged with none other than the Almighty Amazon (on plans for 5g integration), therefore the lately circulating gossips regarding a supposedly upcoming relationship with Amazon may have been inaccurate, but not entirely erroneous.
All of these announcements, as well as the stablecoin COTI, were unable to boost the price past the $2.5 barrier.
On a daily basis, ADA (ADA/USD) appears to have been trapped inside this roughly four-week-old Descending Triangle.
The descending path began at the ATH on 2nd September 21, via the so-called ‘Buy the Rumour – Sell the News’ situation, in which selling pressure on the day the smart contracts were introduced (12th September 21) managed to push the price down to the final and most significant abundance of support in the range between $2.10 and $1.95.
Below this point, there is a steep slope and a slew of awful news if this scenario occurs.
My best suggestion and a possible strategy for swing traders like myself would be to wait for a couple 4-hour candles to fall below $1.95 and then short the thing all the way down to the $1.50-$1.55 region.
If, on the other hand, ADA’s upcoming inevitable hype during the week is sufficient to propel the price above the upper trendline, the 50-day Moving Average (currently around $2.46), and eventually the psychologically significant level of $2.50- then we could be witnessing the continuation of the wild price discovery phase that catapulted the Cardano just over three weeks ago.
Because the range between $2.5 and the ATH has been relatively quiet, any price above $3 does not seem as remote at the present, especially in light of the exciting influx of partnerships with industry-leading organizations, both real-world and blockchain.
Price-wise, if the price remains trapped inside the Triangle all the way to the apex, we will continue to see more sideways trading action with decreasing volatility for the next up to ten days (or until October 8th), but in all likelihood, this pattern will be resolved sooner than that; in fact, it could happen any day.
Additionally, there should be pyrotechnics, with many TA traders anticipating a rise of at least 25%.
If the break occurs to the downside, there may be an accumulation opportunity available around $1.5-$1.55 (worst-case drop of between -20% and 30%).
Never financial advice, only my thoughts and ideas.
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.