Lots of great things are happening in Cardano currently and although the prices of ADA are taking a hit, we cannot wave aside the fact that they’ve been doing an excellent job as far as on chain development is concerned.
To start, they launched two smart contracting tools (Marlowe and Plutus) last week which caught the attention of the blockchain community.
These kind of tools are required by the community in order to topple competitors. Put in mind that Cardano aims at dominating the financial sector. Marlowe and Plutus would come in handy and companies can easily write and simulate smart contracts right on top of the Cardano blockchain before deployment.
IOHK head and co-founder, Charles Hoskinson days later, revealed that the team is ready to launch Cardano 1.4 update on the 18th of December (tomorrow). This is a great development and aside from the increase in storage capacity as well as other code fixes, Cardano 1.4 paves the way for a full decentralization during Project Shelly.
Price Analysis: ADA/USD
Losses seen week over week are mild and in the past week, ADA has dropped 7% against the USD. As usual, sellers have the advantage. However, after December 6 bear breakout, ADA/USD found support close to 2.7 cents.
Since then, prices have been consolidating within December 7th – 9th high low with its clear resistance at 3.3 cents. There is a significant price action between December 7th & 9th, because it did not just shore prices but supporting these higher highs were high trade volumes.
In addition, the prices of ADA/USD confined within these high lows. Putting all these into consideration, this is bullish and this is why we expect the recovery of ADA and even retest 3.3 cents.
If this happens, prices could be propelled prices back to highs of November 29 at 4.5 cents. If the reverse is the case, ADA could be heading for new all-time lows if it slips below 2.7 cents.