The ADA/BTC trading pair is finally showing signs of joining the bullish trends we have recently discussed. Buy signals have been confirmed, and it is the moment to explore how far the breakout will go.
Cardano as a Global Financial Operating System
Charles Hoskinson, the creator of Cardano, has stated in a recent interview with Slot Leader that the world is heading to a place where only one currency will be in function. He explained that the fight for the number one spot has already begun and, therefore, it is time to enhance and develop ‘the world’s financial system.’
As per the founder, Cardano has been built as a global operating system that portrays identity, value, and governance, all in one platform. The protocol will ultimately have the capacity to issue stocks, bonds, commodities, utility tokens, and perform anti-money laundering practices.
ADA/BTC Parallel Channel Breakout Targets 0.00001 BTC
The ADA/BTC trading pair changed hands a yearly high of 0.000016 BTC towards the end of July. The annual highs marked the end of the bull run that started back in March after trading at a low of 0.0000042 BTC.
The majority of gains accumulated amid the launch of the Shelley mainnet and a retreat closed in the crypto asset with drops becoming unstoppable in a parallel descending channel.
Cardano has recently found support at 0.0000074 BTC, suggesting it is likely to see a reversal. With the parallel descending channel resistance now in the mirror, ADA/USD is expected to keep going up, and perhaps pass the obstacle at 0.00001 BTC in the next few days.
ADA/BTC Daily Chart
The Relative Strength Index (RSI) shows how powerful the trend is, and in this case, it is going rather quickly towards the midline. Movement above the average could witness a ripple effect, ending up in a rally towards the aimed 0.00001 BTC level.
IntoTheBlock’s IOMAP model shows a rather difficult pathway heading to $0.1. The enhancing resistance will be an arduous task for the bulls, peaking at the highest seller congestion, namely $0.09 to $0.1. Here, almost 10,800 addresses are shown to have previously purchased 1.97 billion ADA.
Cardano IOMAP Chart
On the other hand, ADA/USD is currently standing on an area of massive support where the highest buyer congestion is emphasized between $0.078 and $0.079. Here, nearly 14,500 addresses previously bought around 936 million ADA.
Considering the Other Side of the Picture
It is important to remember the death-cross after the 50 MA passed below the 100 SMA. Simply put, selling pressure is still there and is likely to soften the buying pressure, postponing the breakout.
The ADA/USD 1-hour chart shows resistance at $0.088. Cardano has already been rejected from this resistance line and has a hard time holding above the short term support at $0.086.
ADA/USD 1-hour Chart
The RSI is retreating from the overbought as a signal of exhaustion in the bullish zone. The hourly ADA/USD chart confirms the resistance showed by the IOMAP model, but, at the same time, a reversal is improbable to demolish the strong support between $0.078 and $0.079.