This past week has seen Cardano (ADA) flourish in the crypto markets.
This was due to two reasons: news of staking ADA on Coinbase Custody with potential for a future listing and the availability of the Shelley Mainnet on July 7th.
$0.10 – $0.11 is the next serious area of resistance for ADA/USD in the crypto markets.
For the past week or so, Cardano (ADA) has grabbed the crypto headlines due to numerous project developments. To begin with, IOHK begun the rollout of the Cardano upgrade known as Shelley. This upgrade has been years in the making and Shelley will usher in an era of decentralization and staking on the Cardano blockchain network.
Beginning July 7th, Cardano investors and holders will be able to stake their ADA on wallets that have undergone the upgrade. Furthermore, staking rewards will start being distributed on August 18th as explained through the Shelley rollout plan below courtesy of IOHK.
Cardano Staking on Coinbase Custody Beginning Q4
Secondly, during the Cardano Virtual Summit this past Friday, the team at IOHK announced that beginning Q4 2020, users will be able to stake their ADA from inside Coinbase’s cold storage.
To note is that Cardano is yet to be supported for trading on Coinbase. This, in turn, means that there is a high chance of ADA being listed on the trading platform this year and before staking can be available on Coinbase Custody. Cardano has been explored by Coinbase for potential listing since mid-2018.
Cardano Could Break $0.11 on Coinbase Staking and Shelley Rollout
Also in the past week, Cardano has embarked on a confident climb in the rankings on Coinmarketcap due to the events surrounding the project. On its way up, ADA has now edged out ‘heavyweights’ such as Binance Coin (BNB), EOS and Crypto.com Coin.
The digital asset is currently ranked eighth and could with time, also edge out Litecoin and Bitcoin SV based on the activities surrounding the project well into the fourth quarter of 2020.
Further checking the daily ADA/USD chart, the following can be observed.
Cardano is experiencing considerable resistance as it attempts to break the $0.10 to $0.11 prize zone.
ADA/USDT is clearly in bullish territory as seen through the trajectory of the 50-day, 100-day and 200-day moving averages.
Trade volume is in the green and MACD is also exhibiting bullishness.
However, the daily MFI looks exhausted at 86.
Therefore, ADA/USD might be due for a correction and/or sideways as it gathers momentum to break the $0.10 – $0.11 resistance level. The momentum for this move will be from the rollout of Shelley into August as well as staking on Coinbase custody in Q4. Furthermore, the probability of ADA being listed on Coinbase in 2020 is high.
However, with Bitcoin exhibiting some weakness that could lead to a fall below $9,000, the 50-day moving average might provide adequate support for Cardano between $0.08 and $0.07.
As with all analyses of Cardano, traders and investors are advised to use risk management techniques such as stop losses as well as keeping an eye out for any sudden moves by Bitcoin that might ruin the party for bulls trading ADA.