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by Eric ChristopherFebruary 5, 2019

Summary

ADA has been quiet compared to other coins in the top 10 — we’re taking that to mean there’s a focus on the tech.

Price has hit key support levels and could consolidate for a few days or weeks.

Long term, the ADA outlook is bullish and we suggest looking for an entry in the next few days or weeks (upon consolidation or drop).

This idea was discussed in more depth with members of my private investing community, The Coin Agora. Start your free trial today »

Cardano (ADA-USD) has started off 2019 on a bearish note, losing further ground as it pushes toward a key support level. This is in keeping with the continued bearishness of the entire cryptocurrency market which has spilled over from 2018. What’s the outlook for Cardano as we head into the second month of the year?

Fundamental Outlook

Cardano has been a bit silent relative to other coins that have invested heavily in marketing. No matter, the organization has proven that it’s invested in its technology. By a measure of code adds and edits, Cardano was the most actively worked-on crypto project of 2018.

Most of that work hasn’t been seen yet as the blockchain is not yet involved with a notable amount of smart contracts. Hopefully 2019 is a year when that sees some change.

For investors and holders, the recent addition of Cardano support on Ledger, generally considered the standard in cold wallet storage, is a welcomed piece of news.

Technical Outlook

The long-term chart of the pairing between Cardano and Bitcoin is shown below. Here, we can see that price is bouncing off the nine-day moving average, which serves as a dynamic support line. At the same area, ADA is finding horizontal support at 0.00001137, where the active weekly candle has formed a very small pinbar.

ADA/BTC Weekly Chart: January 31, 2019

Below this area, the market also will see support at 0.00001 (support 2) and also at 0.00000865 (support 3), which correspond to price areas where price found support in September 2018 and November 2018 respectively. The 0.00000865 area actually proved to be a much stronger support area than the 0.00001 price level.


Via seekingalpha.com

About The Author
Eric Christopher