Cardano (ADA) has moved up as much as 18% over the past 7 days and has maintained gains against the broader market. This analysis will assist in predicting Cardanos next move.

Cardano increases by 18%, volume also higher

 

The chart above is Cardano’s 4-hour chart. What we can see is that, especially over the past three days, both price and volume dramatically increased. The key price level of 0.000012 has been a staunch and strong area of resistance for bulls to break. It has been the defacto value area high and resistance zone thus far for 2019. Traders did push Cardano as high as the 0.0000136 back in early January 2019 but in less than 5 hours it sold off below the 0.000012 level. Currently, Cardano is sitting at 0.0000122 and is thus far holding that value area. It has traded up +5.5% for the day. This is especially bullish because the aggregate cryptocurrency market has been trading lower for the day, with the total crypto market cap losing -1.55% on the day. It remains to be seen whether Cardano will be able to hold this present value area at 0.000012 and create a new major support level before testing the next important value zone at 0.000015.

While technical analysis was indicating an impending breakout for the past two weeks, the fundamental catalyst that may have contributed to the rise could be attributed to the release of the Cardano 1.5 on the testnet. This means that the current Byron development phase in Cardano is complete and now the much anticipated Shelly phase could be implemented ‘soon’. There is perhaps no phase that is more anticipated and that could more predictably bullish for investors and traders than the Shelly phase. The Shelly phase is where we get the ‘real deal’ – meaning a fully decentralized network with staking and delegation ready to go. Holders (or hodlers) of Cardano will be able to join staking pools and include their Cardano directly from the Daedalus wallet.

Entire cryptocurrency market trading higher and with increased volume

                The entire cryptocurrency market has experienced a nice bullish drive over the past week. In fact, according to TradingView’s Total Market Cap data, Last week was the third highest volume week in cryptocurrency’s history. In all, the past three weeks have seen volume move up to the highest levels since 2017. The amount of trade volume here is important. In technical analysis, the study of volume on charts is a key component of accurately predicting future price behavior.  In volume price analysis, it is extremely bullish when volume begins to rise to higher than average levels – especially when prices have already been at or near major/minor swing lows. This is exactly what we see when we observe the volume for the entire cryptocurrency market. How does this factor in predicting Cardano’s future moves? It means that new participants have stepped into the market and have been accumulating – from a behavior standpoint, this means that there are more people participating in the market because they believe values are going to increase – which is precisely the prediction I hold to.