Updating the Shelley network will be of great benefit to Cardano

Updating the Shelley network will be of great benefit to Cardano

By ... | World of Crypto | 20 May 2020

As the Shelley network approaches the day, speculation about Cardano (ADA) has increased. While the community of cryptocurrencies is focused on other alternatives, Cardano's upward movement is on the rise. So far, the ADA has increased by more than 20 percent compared to last week and seems to have more potential. However, there is an important resistance barrier that must be broken.
Cardano, one of the so-called "Atrium killer" tokens, has made significant gains over the past week. However, the conditions of the ADA token in the market seem to be calm, indicating that the altcoins are ready to climb.

A quiet growth
According to data from the Santiment platform, Cardano has been one of the best platforms on the market in terms of sustainable growth over the past few days. "The price of this cryptocurrency has risen by more than 6 percent in the last 30 hours and has risen by more than 20 percent in the past week," the platform said. The interesting thing about the ADA's upward movement is that its market size is still small because most speculation is about other altequines such as Atrium (ETH) and Omisgo (OMG).

The fact that many market participants are not paying attention to Cardano can be a good thing. Given the approach to Shelley's day-to-day approach, those looking to "buy rumors and sell news" may still have a chance to change their terms. Demand for ADA tokens may increase as speculation about a future hardfork grows. It can also be a stimulus for those who want to be rewarded with a transaction protocol that has recently been transferred to the "stock proof" algorithm. But before it can begin to grow, it must overcome a massive resistance barrier.

A major barrier to supply, facing Cardano
The model provided (IOMAP) by Into TheBlock shows us that the range between $ 0.056 and $ 0.057 could be a problem for Kardano to climb. There are approximately 2,700 addresses that have purchased 2.5 billion ADAs, and such a large amount of inventory can be difficult to resist. If the price of Cardano can be above this resistance level, there will be few obstacles to climb above the $ 0.08 level.

From a technical point of view, Bollinger Bands have begun to compress in the one-day time frame of the ADA token, indicating that volatile periods are underway. With a bolish (ascending) move, the price can cross the top of the band, which may see it move up to the next resistance. This is in line with Fibonacci's corrective level of $ 23.6 at $ 0.06, fluctuating mid-February at $ 0.072 and inventory barrier at $ 0.08 in Figure 3.

On the other hand, with the increase in sales of Cardano, the price is likely to fall to the lower Bollinger Bands in the range of $ 0.047. According to IOMAP, there are approximately 25,000 addresses that have purchased nearly seven billion ADA tokens at this price point. Therefore, if the selling pressure increases, high demand in this area can prevent the ADA rate from falling. If this support is lost, the next level of support you need to watch out for is the Fibonacci correction levels of 61.8% and 78.6%. Much of this analysis depends on the impact of loose updates. Therefore, as we approach the desired date, time will tell whether there will be an upward or downward movement.

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