Cardano (ADA) Price Analysis and Testnet
Snapshot for the incentivized testnet occurred on November 12th. Price action continues to consolidate and build for a big move.
Cardano (ADA) recently underwent one of the most anticipated and bullish events since it became public in 2017. The snapshot of Daedalus and Yori wallets occurred on November 12 for the purposes of a balance check before the incentives testnet. The incentivized testnet is the most recent development of Shelly and regarded as one of the last steps before the full launch of Cardano’s network. When Cardano does release the entire network, it will be the first third-generation blockchain that is fully decentralized with a solved and working Proof-Of-Stake environment. I am excited to see the different rewards for staking my personal stake as well as joining a separate staking pool.
Cardano Daily Ichimoku Chart
The familiar axiom that history repeats itself is, I believe, best represented in the technical analysis of financial markets. There is a reason why psychologists, anthropologists, and theoretical scientists practice constant observation of repetitive behaviors. All nature is rife with the repetition of patterns in time and space. The fractal nature of Nature and the cosmos is all the evidence we need for proving the repetitive nature of existence. And financial markets are, perhaps, some of the most significant visual examples of how humans and the environment are slaves to the process of repeating patterns. Cardano is just another example of this repetition.
Today (November 16th, 2019) marks the 21st consecutive day that Cardano has traded inside the the daily Ichimoku Cloud. This is the second-longest period in Cardano’s history that it has spent trading inside the Cloud. The most extended period that Cardano spent in consolidation (and inside the Cloud) was back on January 2nd, 2019, and lasted until Cardano traded entirely outside of the Cloud on January 30th – 26 days inside the Cloud. The difference between the Cloud in January 2019 and the Cloud in October-November of 2019 is essential. The Cloud in January 2019 is shorter and thicker while the current October-November 2019 Cloud is longer and thinner. The thickness of the Cloud is what matters the most in Ichimoku Analysis.
I can’t stress enough the importance of the current Cloud on Cardano’s daily Ichimoku chart. Not only is price respecting the upper and lower levels of the Cloud (Senkou Span A and Senkou Span B), but the top of the Cloud (Senkou Span B) is currently in the most prolonged flat period of Cardano’s history. Senkou Span B is the strongest level in Ichimoku Analysis. It is the single most challenging level for prices to cross. It represents the single most significant level of support and resistance on any chart on any time frame. A flat Senkou Span B is the strongest and exacerbates the natural strength of that value area. The more extended Senkou Span B is, the stronger the level. Cardano could easily spend another 21+ days in the current value area before breaking out. We may not see Cardano experience a significant move above or below the Cloud until the Kumo Twist on December 8th, 2019. Regardless, the current squeeze represents one thing: impending volatility and a dramatic move soon.