- Cardano trims a chunk of the accrued gains in last week after $0.0800 support failed to hold.
- Cardano is still poised for more gains likely to be triggered by the upcoming Shelly mainnet launch.
Cardano outperformed most cryptocurrencies in the market last week. In fact, ADA more than doubled its value in less than a week. On the upside, ADA/USD has traded new yearly highs at $0.087 (Fibonacci swing high). However, it has become increasingly difficult to sustain the gains in the last few days.
In the meantime, Cardano has sunk to $0.078 (prevailing market value). While the RSI is still in the overbought region, the downward movement suggest that sellers are gaining traction fast against the bulls. On the other hand, consolidation seems probable, especially with the MACD contain movement within the positive region.
In the event declines continue, ADA/USD could seek refuge initially at $0.070. The 61.8% Fibonacci retracement level taken between the last drop from $0.0873 to a swing low at $0.0187 is the second key support area. Other areas of interest include $0.05 (the 50-day SMA) and the 200-day SMA, currently holding the ground at $0.0440.
Cardano Shelly mainnet launch
The launch of the visionary Shelly mainnet for the ADA network was recently revealed by the CEO of IOHK, the body that governs and develops ADA, Charles Hoskinson. The developments with the testnet have been yielding of the team at Input Output Hong Kong (IOHK). Hoskinson said in the last week of May that the mainnet will be released on July 29 while staking on the Shelly mainnet set to commence on August 18. The announcement has since given Cardano a green light among the investors as they position themselves for a rally triggered by the aforementioned launches.