Charles Hoskinson anticipates massive influx of users as Cardano price eyes 10% breakout


Share:
  • Cardano price repeats a consolidation pattern that could lead to a 10% downswing.
  • A decisive close below $1.91 will confirm a bearish outlook and crash ADA to $1.76 or lower.
  • Charles Hoskinson looks to expedite work on Hydra as he anticipates massive demand from the growing community.

Cardano price looks ready for another drop as it consolidates between two converging trend lines. Interestingly, this pattern is a repetition of the one that formed before the massive drop on October 27. Going forward, investors can expect ADA to pull back.

Charles Hoskinson prepares for incoming demand

Cardano has been making headway as they’ve partnered with the Ethiopian government and are infiltrating multiple educational institutions across South Africa. While the adoption is palpable, the blockchain has also undergone a massive makeover over the past few months. The anticipation of the Alonzo hard fork that implemented smart contracts pushed ADA price exponentially, but since then, ADA has come a long way. In a recent AMA, Charles Hoskinson, Cardano founder, addressed key points on post-Alonzo updates like Hydra,  Plutus Application Backend (PAB) and others.

Hydra, the layer-2 scaling solution for ADA, has been in progress since its announcement on September 17. On this note, Hoskinson added that they’ve been working on Hydra implementation, and they are also identifying teams so they can “parallelize the workstream because it's such a high commercial priority.”

Hoskinson anticipates that a massive influx of users will come, and the Cardano blockchain will get “hammered.” For this reason, the founder is pushing toward the implementation of Hydra.

Hoskinson further explained,

You need to segregate for microtransactions and especially the stuff with world mobile and the telecommunications traffic that's coming because it's 1.8 million users. So Hydra is a necessity for that, it is very important that we get that out in a timely manner.

While Cardano blockchain prepares for the incoming demand, ADA price seems to be heading south.

ADA price anticipates another crash

ADA price set up three lower highs and five higher lows from September 21. Connecting these swing points using trend lines results in a symmetrical triangle formation. This theoretical formation forecasts a 17% downswing determined by adding the distance between the first swing high and swing low to the breakout point at $2.127. 

ADA breached the pattern on October 27 and dropped 13% before recovering quickly. Since this point, Cardano price has slid into another consolidation that set up three lower highs and four higher lows. Connecting these swing points shows the formation of another symmetrical triangle pattern.

This setup forecasts a 6% downswing, but a breakout will push ADA to the intended target at $1.767. In a bearish case, ADA could also drop to the $1.680 support floor.

ADA/USDT 4-hour chart

ADA/USDT 4-hour chart

On the other hand, if ADA manages to slice through the $1.985 to $2.079 demand zone, it will indicate a resurgence of buyers.  A daily close above $2.079 will invalidate the bullish thesis and indicate that Cardano price is ready to retest the trading range’s midpoint at $2.200.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Ethereum whales turn bullish with Shanghai upgrade less than a month away

Ethereum whales turn bullish with Shanghai upgrade less than a month away

Ethereum (ETH) whales holding between 1,000 and 10,000 ETH have been scooping up the altcoin consistently for a week. With the countdown to the Shanghai upgrade and the ETH token unlock event, there is a spike in Ethereum demand among retail investors. 

More Ethereum news

Ripple price to close the week with a bang as next week will be crucial for another 20% profit

Ripple price to close the week with a bang as next week will be crucial for another 20% profit

Ripple price is closing this week with very profitable numbers, even if a fade is ongoing. The fade occurred after bulls received a firm rejection at $0.50 and have been trading lower from that level since. If bulls can keep their hands on this momentum and the Relative Strength Index (RSI) is not overbought, at least some 20% profit is being prepared for next week.

More Ripple News

Will Cardano price advance as analysts call it one of the favorite altcoins next to EOS and COLT to pop?

Will Cardano price advance as analysts call it one of the favorite altcoins next to EOS and COLT to pop?

Cardano (ADA) price is making the cut and has been shortlisted by several analysts that have put ADA in their top altcoin, primed to explode to the upside soon. ADA is flirting with a second week of gains and could recover its attempt to hit $0.415 as a crucial level for any further uptrend or downtrend.

More Cardano News

Is the new partnering-up strategy the right way for Vechain price to avoid a 30% correction?

Is the new partnering-up strategy the right way for Vechain price to avoid a 30% correction?

Vechain (VET) price had a busy week as several new partnerships were announced. Next to integrating with Dappradar to promote cross-chain visibility, the partnership with Boston Consulting Group might be the one that draws the most attention. Vechain price though is not taking this news in a good way and rather is at risk of tanking further.

More Cryptocurrencies News

Bitcoin: Should you trust this BTC sell signal or wait for $34,000?

Bitcoin: Should you trust this BTC sell signal or wait for $34,000?

Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state. 

Read full analysis

BTC

ETH

XRP