Cardano gets ready to retrace after announcing its roadmap to proof of stake with the Shelley upgrade. The hype around the announcement fades and ADA is slowly retracing as we are reading more in the latest Cardano ADA news.
Cardano is up by 160% since the announcement of the Shelley upgrade roadmap but now that the hardfork is a few days ahead, the hype seems to be dissipating. The loss in interest from investors could lead to a massive correction of $0.097. Cardano soared as the Shelley upgrade speculation turned quite euphoric but now as the launch date approaches, the investors are taking profits on ADA and are turning their attention to some other altcoins.
Cardano got the attention of the market after Charles Hoskinson, the founder of IOHK released the official Shelley roadmap in late May. The so-called “Ethereum-killer” skyrocketed more than 160% to reach a new yearly high of $0.14. With the much-anticipated hard fork being only a few days ahead, the hype around ADA seems to be fading. Cardano gets ready for a decrease in interest from investors as the data from LunarCRUSH reveals that the social engagement activity dropped after the price peaked in July.
The number of social interactions for ADA plunged from over 19.6 million to 5.5 million engagements including likes, comments, replies, retweets, and shares on social media. Despite the heavy excitement around Shelley, Cardano is still doing well against other smart contract offerings on the market. Traders will realize that they will minimize their risks by taking profits and the sudden 70% drop in social activity is a leading indicator of the dropping prices and trading volume as well.
The TD Sequential indicator presented a strong selling signal on ADA’s 3-day charts to the pessimistic outlook. The bearish formation developed as a green nine candlestick anticipating the four candlestick correction. The red two candlesticks below the red one candle could serve as a confirmation that ADA is poised to drop even further. IntotheBlock’s model reveals that if sell orders start to pile up, there isn’t considerable support that will prevent Cardano from dropping to $0.097 which is where the next significant supply sits to prevent even more retracements.
The GIOM model shows that about 29,000 addresses had bought more than 2.4 billion ADA between $0.089 and $0.113 which is a strong area for ADA that has the ability to hold the price in the correction line. Holders within this range will try to remain profitable and will likely buy more ADA to avoid seeing their investments lost.
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