Cardano’s zero price leaves ADA on the verge of a 25% drop
- Cardano’s price is on track to close with the biggest drop since May 21.
- ADA is trading well below the high of $ 1.40 in 2018 and could close at the low since April 26.
- IOG’s director of operations hints at a new government partnership in Africa on payments and open finance.
Cardano’s price had managed to hold the 2018 high from May 24 through Saturday’s close below $ 1.40. Today’s weakness has confirmed the blackout, and ADA may initiate a larger decline that could involve a psychologically significant test of $ 1.00 or even a sweep from the May 19 low to $ 0.91.
Cardano continues its partnerships with Africa
At the end of April, the developers of Cardano Input-Output Global (IOG) announced major partnership agreements with the governments of Ethiopia and Tanzania. In the Tanzania agreement, the goal is to build a scalable infrastructure with World Mobile. The aim is to provide mobile internet access to the nation while providing a digital identity to be the basis for economic development.
Earlier this month, John O’Conner, COO, tweeted about bringing one million more users to the Cardano platform.
Today I wrote a letter to a president, found a million users to bring on #Cardano, and had a hell of a good cup of coffee. It is only noon, while waiting for the afternoon. ♥ ️ be part of the @InputOutputHK gang.
– John O’Connor (@jjtoconnor) June 9, 2021
However, in a interview this weekendHe did not provide any details about the potential project, saying it would not be productive for him to put more pressure on his shoulders by giving details before signing the contracts.
O’Connor said the deal is still in its early stages, with the functional part still being researched.
A big part of my business flow is trying to make sure we understand these setters and industries by working with top brand partners that we can do a pilot with, learn the ropes, learn what missing the Cardano solution at the moment and cook it.
O’Connor was light on the details, but his confirmation of a new deal at the planning stage capitalizes on Cardano’s initial momentum in building its blockchain footprint in Africa. For now, Cardano followers should stay tuned to the news for more information on the project and the country it involves.
Cardano price unable to silence catastrophic voices in the crypto market
Cardano’s price is down about 26% from the initial test of the union of the Anchored Volume Weighted Average Price (Anchored VAP) and 50-day Simple Moving Average (SMA) on June 13. This was the first sign that the price escalation will be a challenge and that the disappointing engagement, as evidenced by the volume profile, is set to change.
With Cardano’s price now comfortably lower than the 2018 high of $ 1.40, market speculators should expect a deeper drop to psychologically significant $ 1.00 or a sweep from the low of the May 19 at $ 0.91, which is a loss of 26% from the current price. To hit the May 19 low, ADA is expected to break through the May 23 low at $ 1.04 and the 200-day SMA at $ 0.98.
If the Cardano price drop continues, it is expected to be rapid, such as May 19 and to a lesser extent May 23.
ADA / USD daily chart
Some event or news directly related to ADA could stop the decline. Potentially, more details on the Africa project mentioned above. Still, Cardano’s price wouldn’t be exploitable until at least one daily close above $ 1.40. Take note of failed escape attempts at $ 1.40 in February, March, and April. As we see regularly, the support becomes resistance and heavy resistance if the support period was prolonged.
ADA investors should watch for an oversold daily Relative Strength Index (RSI) reading in case of further weakness in Cardano prices. The latter was at a September 2020 low, the start of a 3,200% advance.
Cardano’s price is in a vulnerable position with no air resistance to serve as a magnet or a recognizable support level up to $ 1.04. Operators in the ADA market would be more successful in letting the digital asset prove itself by relying on major media or scooping $ 1.40 before committing to the long side.