Key Takeaways:
- Analyst asserts that successful implementation of Cardano's roadmap is vital for the future of ADA.
- The token dropped 6.67% on Dec 16.
PATNA (CoinChapter.com) — Cardano’s roadmap is key to ADA’s survival in the current bearish market scenario, asserts a Coin Bureau analyst who goes by the pseudonym “Guy.”
The blockchain platform’s development comes in phases, or ‘eras,’ starting with Byron. Then came the Shelley, Goguen, and Basho eras. Cardano founder Charles Hoskinson announced the blockchain platform would enter the Voltaire era “soon,” marking the fifth and final stage of Cardano’s development roadmap.
One of the few remaining milestones in Basho is a scaling solution called Hydra, which will start being rolled out next year. Additional milestones include the introduction of various side chains such as Midnight as well as an EVM [Ethereum Virtual Machine] side chain that IOHK is working on.”
Crypto analyst Guy said in a YouTube video
The crypto analyst asserted that Cardano’s, and thus ADA’s, future relies on successfully implementing the development stages. Basho would likely conclude by 2023’s first quarter, with Voltaire’s implementation slated for 2023 end.
Also Read: ETH/BTC: Ethereum Price At Risk of Bearish Breakdown Vs Bitcoin
Voltaire would introduce voting and a treasury system, helping Cardano transform into an independent network. The blockchain platform launched Catalyst, a decentralized governance project, marking Cardano’s first step towards self-governance.
Guy believes that the Voltaire upgrade would be vital for the long-term price action of Cardano’s in-house token ADA. However, the analyst warned that the near-term forecast for ADA continues to be bearish.
In other news, the self-custody wallet app Trust Wallet announced that ADA staking was live on its platform. Though ADA price didn’t bother reacting when the news hit the wire, the update might have a bullish impact on the Cardano token in the long run.
MACD Forms Bearish Crossover For ADA
ADA price fell more than 11% from Dec 14’s high of $0.32 to form a low at $0.28 on Dec 16. ADA’s bearish run has forced its momentum oscillator MACD to form a bearish crossover.
In detail, positive bars on the MACD histogram turned negative on Dec 16, indicating the MACD line (difference between 12-day and 26-day EMA) moved below the MACD signal line (9-day EMA of MACD) to form a bearish crossover.
Also Read: As people in Europe suffer from US-led sanctions on Russia, Asian giants like India buy cheap oil
Traders often view bearish crossovers as a sell signal. ADA fell over 6.6% on Friday before buyers could recover some lost ground. If the bearish crossover causes more sell-offs, ADA price might fall to test support near $0.276.
Breaching below immediate support would push the Cardano token to $0.257 before recovering.
Meanwhile, ADA’s RSI has reached the gates of the oversold region, with a value of 30.35 on the daily timeframe. Traders usually consider oversold RSI levels as entry points for the market, as the indicator often preludes a potential bullish trend reversal.
However, an uptrend would require buyers to push ADA price above the immediate resistance near $0.3. Breaking and consolidating above immediate resistance would help Cardano token rise to test resistance at $0.329, near its 50-day EMA (purple wave), before retreating.
XRP price nears a break, responding to a rumor. Learn more about it here
