ADA plummeted a day before the Shelley Launch as the holders are taking profits before the upgrade approaches as we are reading more in the upcoming Cardano latest news.
Cardano took a 12% dip over the past 16 hours as the anticipated Shelley upgrade approaches but despite the selling pressure, the data reveals that the $0.12 support level could hold. Shooting up past this barrier, ADA could shoot to new yearly highs. As per the Cardano latest news, a few technical indexes suggested that ADA plummeted, sitting in overbought territory but there’s a robust support barrier that will allow the cryptocurrency to rebound.
Cardano is set to shift to a proof-of-stake consensus algorithm tomorrow as the Shelley upgrade nears, investors are willing to cash out their ADA and will mount selling pressure led to a 12% correction in the past 16 hours. Looking from a technical perspective, the recent price action seems to be a part of the ascending parallel channel where the token was contained since March. From then, each time that the ADA token increased to the upper boundary of the channel, it drops down to hit the lower boundary and if it bounces back up again, which is consistent with the channel characteristics.
Also, as per the Cardano crypto news, the Ethereum-killer moved to the middle of the channel and presents an ambiguous outlook. ADA could break below the support level and to drop in a lower level of the channel or surpass the hurdle to a new yearly high. IntoTheBlock’s In/Out of the money around price model shows credence to the bullish outlook. Based on the on-chain metrics, there is a huge support barrier ahead of Cardano that could prevent it from going further.
About 50,000 addresses previously purchased more than 6.8 billion ADA between $0.12 and $0.13 and this kind of supply has the ability to absorb downward pressure as the holders will likely try and remain profitable in their long positions. The IOMAP cohorts reveal that there isn’t any major resistance that can stop Cardano from rebounding to new yearly highs but the upper boundary previously mentioned could hold. It’s also worth mentioning that since the Black Thursday, ADA gained more than 780% because of the strong speculation around the upcoming hard fork.
Now, investors have to remain aware that the recent price action will be an example of “buy the rumor, sell the news” type of thing. The traders who are betting on the upside have to pay close attention which can result in ADA taking a 13% nosedive to $0.11.
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