- Cardano adds 16% in two days to reclaim support above $0.040.
- Cardano will continue trading sideways as technical levels stay positive.
Cardano corrected higher over the last weekend adding more than 16% to its value. Over the last few weeks, Cardano has battled to stay above the key support. However, the declines towards the end of January and the first week of February have sent it spiraling $0.040, $0.038 and the key support $0.036.
The bullish wave that swept across the market over the last weekend pulled Cardano up together with the majority of the digital assets. A reversal was occurred on hitting 2019 lows of $0.03556. ADA/USD sprung up in successive bullish candles above both the 50-day Simple Moving Average (SMA) and the 100-day SMA (1-hour range). Cardano reclaimed the support at $0.04 and tested the nest resistance at $0.0430 before starting to trim the gains.
However, compared to other assets like Bitcoin (BTC) which has canceled the gains from $3,700 to the current value of $3,590. The uptrend has slowed down and Cardano is trading at $0.04119 after sliding below the trendline support. It is likely that ADA/USD will trade sideways in the near term as the Relative Strength Index (RSI) is horizontal at 54.00. Similarly, the Moving Average Convergence Divergence (MACD) is maintaining in the positive territory. In case a reversal occurs, ADA will find support at $0.040, $0.038 and the monthly low at $0.03556.
ADA/USD 2-hour chart
Upcoming Implementation Of ProgPow For Ethereum Algorithm Gains Support From Majority Of Voters
The current roadmap for Ethereum shows that there are certain upgrades and milestones that the platform aims to reach over a 4-stage plan. The most recent stage is set to include a newly integrated type of PoW (proof of work) algorithm called ProgPoW. The algorithm is resistant to ASIC use and it will be used in place of the current algorithm, ETHhash. A new online vote through Ethereum shows that the majority of their voters are in favor of this change.
Since the algorithm will be ASIC resistant, developers will see a decrease in the efficiency of using ASICs over the generic hardware that could be used to mine, which essentially means that graphics processing units will be used. However, this update does not completely eliminate the use of ASICs.
The numbers on the Ethereum platform indicate that there’s over 76% of votes (628,000 ETH, which is about $76 million). There are 23% of voters, which accounts for 191,000 ETH ($23 million) that were against it.
According to the voting portal, the token holders are the ones that will take on the most impact from the changes made with the algorithm. By allowing ETH holders to vote, the developers can get a clearer idea of what the community wants than taking into account the comments that are anonymously posted in online forums. At this point, there is no timeframe for the end of the voting process, and the election results do not place any requirements on the voters.
A consensus in the implementation of the algorithm was reached earlier last month, determining that the developers would delay the implementation. This delay gave them time to let the algorithm be audited by a third party at the beginning of this month.
Unfortunately, ProgPoW has faced a lot of controversies since it was announced, due to a post from a code contributor at Ethereum that said developers should embrace the use of ASICs. However, other members of Ethereum believe that the algorithm will not give the ASIC resistance that they expect.
CARDANO (ADA) Long-term Price forecast- February 17
ADA/USD Long-term Trend –Ranging
Supply zone: $0.0600, $0.0800, $0.1000
Demand zone: $0.0100, $0.0080, $0.0060
ADA remains in a range-bound market in its long-term outlook. The bullish momentum was lost after rejection at $0.04399 in the supply area on 10th February against upward price movement. Moreover, subsequent formation of the bearish railroad after the close of the market on 11th February suggest the bears returned.
The bears sustained momentum as the cryptocurrency made a low at $0.04055 in the demand area on 14th February.
Price is within the two EMAs the stochastic oscillator signal pointing at down 68%. These suggest a downward price movement in the days ahead within the range.
ADAUSD is consolidation and trading between $0.05200 in the upper supply area and at $0.03800 in the lower demand area of the range. A breakout at the upper supply area may be considered for a long position after a retest while a breakdown at the lower demand area may be a short position with good candle pattern as confirmation for entries. Hence patience is needed to allow this occurred before taking any back position.
Cardano set to launch a new roadmap in April detailing “Cardano 2020”
According to a statement from IOHK, Cardano will soon launch a new roadmap, detailing the project’s “vision” for Cardano 2020.
IOHK, the founding company of Cardano, announced that strategic changes following a detailed roadmap would be introduced after the IOHK summit on April 17th.
The roadmap will apparently entail key points made by Charles Hoskinson in his keynote speech during the summit. While details of such are scarce, Hoskinson is expected to focus on the vision for Cardano 2020. Many investors are worried about this particular talking point, as 2020 is the date at which the IOHK contract and subsequent funding for Cardano are said to run out.
“The Cardano roadmap is changing. We will be launching an exciting new roadmap which showcases the Cardano 2020 vision after the IOHK Summit, which will be taking place on April 17-18. CEO Charles Hoskinson will outline this vision in his keynote speech and the roadmap will be relaunched with a renewed focus on this milestone. For the time being, we will be removing the timer on the roadmap page as well as publishing intermittent updates about important software releases.” The full statement reads.
The last quarter of 2018 was fairly turbulent for Cardano, with Hoskinson calling out the project’s eponymous foundation for a “lack of transparency”. This comment was made following a perceived lack of progression, leading to the subsequent forced resignation of the foundation’s chairman, Michael Parsons.
Cardano was also pushed out of the top 10 in 2018, overtaken by Binance Coin (BNB) and stellar’s XLM.
Let’s hope 2019 proves to be a kinder year for the project.
Read more: Cardano Foundation chairman pushed to resign; Cardano Foundation deemed “ineffective” by IOHK and Emurgo