What’s Up With Cardano These Days?

Cardano has been mighty quiet since the release of smart contracts back in September. Does it have something to do with a potential death cross?

Covered:

• Cardano Price Action
• ADA Outlook Drama
• The Upcoming Cardano Death Cross Massacre

Cardano Price Action

Arguably the most divisive project in crypto, Cardano (ticker symbol ADA), has struggled to get back to its all-time highs that it saw ahead of its smart contract release. Back on September 2nd ADA hit $3.10, but is now trading today in the $2.15 range today. That’s about a 30% drop for the smart contract protocol.

However, Cardano is still way up the last 90 days — let alone the year.  As the chart above shows, Cardano stood at around $1.20 on July 24th, meaning its still up 90% over a 90 day period. It’s not performing quite as well as it was at the beginning of September, but it’s showing strength after the completion of a major catalyst.

Recommended:  Cardano Summit: Did It Shut Up The Critics?

As we’ve seen many times over, buy the rumour and sell the news can be a pretty solid heuristic. Compared to other cryptos in that regard, Cardano is faring better.

Even looking at the 30-day chart shows that Cardano is up 9% in the last 30 days.

It’s not until you get into the 14-day (-6%) and 7-day (-1%) charts before you start seeing some red. But, a short timeframe like that is not particularly telling. Especially considering how well it’s done on a longer time frame.

ADA Outlook Drama

Brief Update https://t.co/9Tw2zPtVxm

— Charles Hoskinson (@IOHK_Charles) October 18, 2021

Nevertheless, the outlook on Cardano right now isn’t bearish. It’s apocalyptic.

“Cardano needs to reclaim $2.20 to avoid catastrophic outlook,” reads a headline from FX Street. Meanwhile, Investing Cube says, “Cardano Is In Trouble.” And, Daily Hodl quoted a trader who believes if ADA falls below its $2 support, “things probably get ugly.”

Yikes.

It hasn’t helped that Charles Hoskinson hasn’t been doing his YouTube AMA’s lately. But, he did take some time to talk about Cardano on Periscope.

Recommended: Charles Hoskinson Beefs With ICP Founder

“I’ve noticed some things floating around Twitter… the usual FUD, Hoskinson said. “There is a lot of technology that will be rolled out in the coming 3 to 9 month period that relates to scalability. The point of Goguen was getting the programming model out. And, the point of basho is making that programing model work at a large scale.”

He later added, “next year we finally get to see large scale commercialization of Cardano, and that’s really the important part.”

Hoskinson probably shouldn’t have used the words next year. It’s like ignoring a “Don’t Feed” wild animals sign. But he did. Though, he also has a point. Dapps take time. Consider Ethereum for a second. The network went live in July of 2015. Uniswap launched in November 2018.

The Upcoming Cardano Death Cross Massacre?

We haven’t even gotten into the death cross yet. According to Yashu Gola, a death cross is, “a market signal that’s generally seen as a warning of more downside in the near term.” Apparently, there is one forming for the ADA/BTC trading pair.

The idea that a death cross is a warning is kind of interesting. It certainly wasn’t the case with the recent Bitcoin death cross. Moreover, Gola does say later on in the article that it’s probably nothing to worry about. “Nonetheless, the likelihood of an immediate selloff remains relatively low. That is mainly because ADA’s daily relative strength index (RSI), which alerted the token’s status against Bitcoin as oversold, is below 30.”

It’s probably worth pointing out this piece by the same author on Peter Brandt’s bearish outlook on ADA. Back on July 30th. Scroll back up if you want to see how well that aged.

Either way, not sure how much credence you can give to the Cardano charts. Especially considering how these two traders saw something different staring at the same snow globe.