Cardano (ADA) is currently the only top 10 coin to have broken market structure. It has been trading in a falling wedge since the beginning of May. Prior to that, Cardano (ADA) was trading in a bullish channel since the beginning of March. However, an overextended correction dragged prices below the bullish channel while continuing in the falling wedge. In the past few days, Cardano (ADA) has broken out of that falling wedge. The EMA alignment is still bearish but price action points to a potential reversal up ahead in the next few weeks.
Cardano (ADA) despite being a top 10 coin is still considered massively undervalued by many crypto enthusiasts. Besides, Cardano (ADA) founder and Ethereum Cofounder, Charles Hoskinsons is known for his genius and hidden talents. This is also why many investors including Ran Neuner from CNBC are so bullish on this coin. Charles Hoskinsons and the team behind Cardano (ADA) do not bother with unnecessary publicity or promotion. Instead, they have kept their focus on what matters from the very onset. The reason why many cryptocurrency analysts and investors believe Cardano (ADA) is still massively undervalued is that currently most of Cardano (ADA) investors are people who understand the technology behind the project and are familiar with the team. Most of these investors also follow Cardano’s github and Twitter regularly and try to keep posted as to new developments. Now, most of these investors can be classified as tech savvy or more aptly blockchain savvy investors.
However, the vast majority of investors in the cryptocurrency space do not necessarily understand the tech behind the projects they are investing in. Most of them rely on charts, word of mouth, publicity, hype and similar factors. As for Cardano (ADA), so far we have mainly seen interest from blockchain geeks, which constitute a minute portion of the cryptocurrency investors’ pool. If other investors were to get involved as a result of some publicity or promotion, Cardano (ADA) could indeed see enormous gains. This is just the way it currently is with crypto projects. There are projects like EOS (EOS) or TRON (TRX) which are massively hyped up. Then there are projects like NEM (XEM) that only a limited number of investors truly understand or have solid reasons to invest in.
On the ADA/BTC chart, the cryptocurrency can be seen to have clearly broken market structure. It has been trading in a pitchfork since the beginning of the year. Different segments of the pitchfork held until mid June when the price plunged below support line and broke market structure. The price has started to recover and has been up against Bitcoin (BTC) for the past few days. There are also rumors of a partnership with Google. This would be nothing surprising considering Cardano (ADA) is a sophisticated blockchain with a lot more to offer than Tron (TRX) or EOS (EOS) combined. However, it is pertinent to note that Cardano (ADA) is still below the previously broken market structure with no nearby support. Should Bitcoin (BTC) fall from current levels, Cardano (ADA) will be one of those coins to suffer the most.
Read more: Crypto Daily