Today in Territorio Blockchain, within the technical analysis section, we have BELOBABA sharing an article about CARDANO (ADA) about its technical and fundamental situation, from the hand of Jesús Sánchez-Bermejo, Chief Investment Officer of BELOBABA.
CARDANO AND ITS LH CONTINUED
#cardano is an open source blockchain as well as a platform for executing smart contracts and issuing its own digital currency, $ADA in its acronym. Cardano was founded in 2015 by Ethereum co-founder Charles Hoskinson.
Fundamentally, Cardano has many opportunities to continue growing, in the ecosystem. Fees are coming in and how blockchain is consolidating in the blockchain/crypto world. Cardano is what is considered a “third generation” blockchain. Designed, in essence, to solve the scaling problems typically associated with the first generation (Bitcoin) and the second (Ethereum).
Cardano uses a PoS, Proof of Stake system, reducing the amount of electricity requirements and improving its scalability. The second feature of Cardano is its Recursive InterNetwork Architecture which allows the existence of a subnet within a main network, which also makes it easier for a network to grow. Cardano aims to become an Internet of Blockchain. Cardano will also allow metadata to your transactions if desired, making the Cardano blockchain network more friendly to banks & governments.
Besides:
Cardano has just announced its hard fork called “ Chang”. This hard fork will begin a new community-driven governance model in the first half of 2024
Technical Analysis for ADA (Cardano)
After a brilliant end to the year, the price in December has encountered initial resistance, within its upward recovery.
The complete observation of the entire crypto winter (large long-term bearish movement from the end of 2021 to the summer of 2023) gives us a vision of brutal falls (everything already traditionally behaves in the crypto world, in these general falls of altcoins).
Now and after apparently finding the base and final support of the great fall, the price has reacted upwards, with figures from its support, very interesting, but which does not go beyond a basic recovery, of everything that had previously fallen. .
What could we expect next?
With 2024 already begun, Cardano faces short-term resistance that I believe will be overcome this first quarter of the year, with a high probability.
The creation of a new LH (low high/rising low) is vital, in these initial stages of a new bullish movement. The consolidation of supports in an upward trend, for this short term, should provide long-term support for guarantees for the continuation of the upward trend, in recovery from the previous fall.
Especially thinking about future attack zones, between 0.90 and 1.10 USD, a great battle that will come next, which if successfully overcome, would open future doors to a much larger movement. But before you run, you must walk, and the current resistance of 0.75 USD has been resistance, for 5 consecutive weeks, to catch your breath, before attacking the zone and continuing.
Chart shown on weekly candle (W1) of Cardano (ADA).
This content is for informational and educational purposes. There is no consumer protection. Your capital is subject to risks. It is not a recommendation to buy or sell crypto assets. Please do your own research or contact your trusted financial advisor.
