Holders had the opportunity to capitalize on excellent gains after Cardano’s 700% rise in recent weeks
Cardano (ADA) has embarked on a parabolic spike in recent weeks. Since the March lows, altcoin has appreciated approximately 700%. And just last week, the ADA went up 50%.
Cardano (ADA) price action chart since early February at TradingView.com
The cryptocurrency is outperforming in launching the Cardano blockchain “Shelley” update. The update, scheduled to be fully implemented at the end of July, activates the proof of participation (PoS) in the network. Shelley’s putting into play will further decentralize Cardano, encouraging the adoption and maintenance of the ADA, hence the rally.
Unfortunately for Cardano holders, there are technical and chain signs indicating that the altcoin rally has finally ended.
Cryptocurrency trader Michaël van de Poppe shared the chart below on July 8th. This shows that, against Bitcoin, the ADA is facing “substantial resistance”. The current levels were relevant throughout the asset’s history.
Van de Poppe added that if the ADA goes up a little further, it will achieve “strong resistance”, which it will have trouble overcoming.
Analysis of Cardano (ADA) vs. Bitcoin by trader Michaël van de Poppe (@Cryptomichnl on Twitter). Chart by: TradingView.com
On-chain signals and exchange signals shared by IntoTheBlock corroborate the downturn that some are developing. Below is a screenshot of the company’s dashboard for the ADA, which contains seven main metrics.
Since July 9, four out of seven of the main metrics have been “down”. These metrics are as follows:
– In cash: a moment indicator of the profitability of cryptocurrency holders
– Concentration: the concentration / centralization of a cryptocurrency supply between addresses
– Large transactions: a moment indicator of the number of large transactions (more than $ 100,000)
– Purchase and sale volume imbalance: the balance between purchase orders and sales orders in a given price range
Cardano signals on-chain, exchange and derivatives from IntoTheBlock, a blockchain analytics company
Cardano’s bearish outlook comes when the cryptocurrency market appears ready to calm down after a multi-day recovery. Some of last week’s most popular altcoins – Dogecoin, Chainlink, VeChain and others – have dropped massively from the highs.
Bitcoin also apparently lost the positive momentum that brought the asset to just a few $ 9,500 base points.
According previously reported by Bitcoinist, the main cryptocurrency is printing three technical signs of weakness. An analyst identified these signals as follows:
“Retesting + being rejected by resistance + MACD testing a sales cross. Don’t let the euphoria blind you, manage your risk by raising your stop loss. “
Image courtesy of Teddy (@TeddyCleps on Twitter). Chart by: TradingView.com
There are also analysts fearing that the recent Bitcoin price action is startlingly similar to the $ 10,500 seen in February.
Should the BTC retract from here, altcoins are likely to follow. The blockchain analytics company Coin Metrics reported that Bitcoin’s 180-day correlations and many of the major altcoins (including Cardano) are above 0.80.