Shelley Upgrade Brings Cardano (ADA) More Gains: Analysis

The Shelley Upgrade brings Cardano more gains and the speculation around ADA is expected to skyrocket as the upgrade approaches as we are reading further in the Cardano news today.

ADA is up by more than 20% over the past week and it seems to have more gas in the tank but there’s a huge resistance ahead that will have to be broken first. One of the so-called Ethereum killers, ADA started posting gains over the past week but the market seems quite for ADA which indicates that the altcoin is poised for further advance.

According to the Sentiment data, Cardano is ‘’quietly creeping up’’ and became one of the top-performing altcoins over the past few days. The behavioral analytics platform also pointed out that the ADA price surged over 6% in the past day and it is up by more than 20% over the past week. The most interesting part about ADA’s bullish momentum is that the social volume remained low while the other coins started evolving including for OmiseGo and Ethereum. The fact that most of the market is not paying attention to Cardano could be a good thing.

Those that are seeking to buy the rumor and sell the news, the Shelley Upgrade brings good news for the traders. As the speculation mounts before the Shelley hard fork, the demand for ADA could increase. This could also be fueled by those who want to earn staking rewards as the protocol moves to a proof-of-stake algorithm. Before the altcoin takes off, it still has to overcome a massive resistance wall.

As per the IntoTheBlock models, we can see that the area between $0.056 and $0.057 could spell trouble for the Cardano uptrend. More than 2,700 addresses purchased about 2.5 billion ADA and a massive supply barrier could be harder to break which is why it is a key for an upward movement. If the price is able to punch above this resistance level, there will be other barriers preventing further movement beyond $0.08. Looking at the technical perspectives, the Bollinger bands on ADA’s 1-day chart have started to squeeze indicating a period of higher volatility.

The bullish impulse which will allow the token to move above the upper band will see advancement to the next resistance hurdles which are represented by the 23.6% fib retracement level at $0.06. On the flip side, the increase in selling pressure behind Cardano will see it crashing to the lower Bollinger band to $0.047.