Cardano’s ADA has demonstrated a decent recovery over the past few sessions now, after a key area of support was breached in October. The Cardano foundation continue to see supportive news around them.
Emurgo HK to Launch Cryptocurrency Exchange
Earlier in the week, EmurgoHK, the venture builder for the Cardano blockchain protocol, announced they will launch a crypto exchange. This would see ADA becoming the base currency for the exchange. EmurgoHK will partner up with IronFX for this anticipated launch.
IronFX are an FCA regulated broker, offering a platform for users to speculate on forex and other markets. Both EmurgoHK and IronFX will create this platform known as IronX. It will be a fully regulated and supported exchange for crypto investors, online traders and ICOs.
Technical Review – ADA/USDT
ADA/USDT was trading within a triangular pattern. This had been the case from 19thSeptember, price action was dictated within the formation. Selling pressure hit the market with quite some force on 29th October. As a result, a breakout below the lower support of the pattern was seen.
The above-mentioned breach, around $0.0730, saw the trend line giving way. Over two sessions, ADA/USDT dropped as much as 7%, down to $0.0678. The downside pressure appeared to be capped, thanks to an area of demand.
Following the bounce, over the past 6 sessions, 5 of those ADA/USDT has produced a closure within the green – demonstrating the strength of this current bullish momentum. The price of late has been flirting around the broken triangular pattern.
4-hour Chart Review
Looking via the 4-hour chart view, a candle closure above the initial lower support of the pattern can be observed. This is a technical development of which the bulls should capitalize on, with another firm candle further away from that trend line.
The next near-term target for the bulls will be the upper trend line of the triangular pattern. This is tracking at $0.0780. Therefore, should there be enough momentum to see this tested and breakout, it will likely open a fresh wave of buying pressure.
Ultimately, if such a move plays out, eyes will on the above supply zone. It can be observed floating well into the $0.0900 territory. ADA/USDT last traded here back on 23rd September, before the bears pilled in to see hard selling pressure.
In terms of support, as mentioned above, a demand area is seen within the low $0.0700 area. Furthermore, $0.0600 has proven to see decent buyers swoop in, as demonstrated on 12th and 18th September.
Finally, given all mentioned above, both technically and recent fundamental developments, it does sit favorable with the bulls. Lastly, confirmation would likely be seen should ADA/USDT make a run above $0.0780-0.0800 area. As a result, seeing the price above the triangular formation.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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