With Shelley Upgrade on the Horizon, Cardano Posts Big Gains

• Carmela Murray
• May 21, 2020
• Market
• 0 Comments

Speculation around Cardano (ADA) is expected to skyrocket as the Shelley upgrade approaches.

Key Takeaways
The bullish momentum behind Cardano is rising while the crypto community is focused on other altcoins.
Thus far, ADA is up by more than 20% over the past week and it seems to have more gas in the tank.
Before surging, however, there is an important resistance wall ahead that must break first.

Share this article

One of the so-called “Ethereum killers,” Cardano, has been posting significant gains over the past week. Still, the market appears quiet on ADA, indicating that the altcoin is poised for further advance.
A Quiet Move Up
According to data from Santiment, Cardano has been “quietly creeping up” as one of the top-performing altcoins over the last few days.
The behavioral analytics platform pointed out that the price of this cryptocurrency surged over 6% in the past 30 hours, and it is up by more than 20% in the past week.
The most intriguing part about ADA’s bullish momentum is that its social volume has remained low as most of the chatter is evolving around other altcoins, such as Ethereum and OmiseGo.
Cardano’s Social Volume by SantimentThe fact that not as many market participants are paying attention to Cardano could be a good thing.
Those who are seeking to “buy the rumor and sell the news” as the Shelley upgrade approaches may still have some time to place their bets.
As speculation mounts around the upcoming hardfork, demand for ADA may shoot up. This could also be fueled by those who want to earn staking rewards as the protocol transitions to a proof-of-stake algorithm.
But before this altcoin takes off, it still needs to overcome a massive resistance wall.
A Major Supply Barrier Ahead of Cardano
IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model reveals that the area between $0.056 and $0.057 could spell trouble for Cardano’s uptrend.
Here, roughly 2,700 addresses purchased nearly 2.5 billion ADA. Such a massive supply barrier could be hard to break, which is why it is key for a further upward advance.

If Cardano’s price is able to punch above this resistance level, then there are few barriers preventing further movement beyond $0.08.
In/Out of the Money Around Price by IntoTheBlockFrom a technical perspective, the Bollinger bands on ADA’s 1-day chart have begun to squeeze, indicating that a period of high volatility is underway.
A bullish impulse that allows the token to move above the upper band, may see it advance towards the next resistance hurdles. These are represented by the 23.6% Fibonacci retracement level at $0.06, mid-February’s swing high of $0.072, and the supply barrier previously mentioned at $0.08.
ADA/USD on TradingViewOn the flip side, a spike in the selling pressure behind Cardano would likely cause a drop in prices towards the lower Bollinger band, hovering around $0.047. There are approximately 25,000 addresses that bought nearly seven billion ADA near this price level, according to the IOMAP.
This area of high demand may prevent ADA from a steeper decline if the selling pressure behind it were to increase. If it breaks, however, the next levels of support to watch out for are the 61.8% and 78.6% Fibonacci retracement levels.
Much of this analysis hinges on the impact of the incoming Shelley upgrade. There is still substantial uncertainty as Cardano edges closer to its launch date.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.