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Cardano's Shelley Has Investors Buzzing At Just The Right Time

Jun. 05, 2020 5:52 PM ETCardano USD (ADA-USD)7 Comments


  • Cardano's release of its "Shelley" hard fork timeline has created a buzz in the crypto community and an upward move for price in ADA tokens.
  • On a USD comparison, ADA tokens are now up 150% YTD; as the crypto market has pushed the ADA enthusiasm even higher.
  • Technical analysis shows a bearish short term with more room to expand and lowered resistance in the longer term.
  • We saw the bearish short term happen on June 1, as BTC moved hard upward above $10,000 and left ADA in the dust. There seems to be bullishness ahead, however.
  • Looking for a helping hand in the market? Members of The Coin Agora get exclusive ideas and guidance to navigate any climate. Get started today »

After a period of consolidation on the charts, Cardano (ADA-USD) seems to have picked up momentum with a bullish move in the last week as it trades against its main BTC pairing. Is this a sign that ADABTC now has bullish momentum or is the present spike in price simply a retracement in a downtrend which would favour sellers in the long run? These questions are answered in the analysis for the pair below, which provides the price outlook for the rest of Q2 2020.

Fundamental Analysis

Cardano's price surge against Bitcoin seems to have been engineered by the confirmation of the release date of the Shelley hard fork. The Shelley hard fork release date was announced by Charles Hoskinson (creator of Cardano) last week and is expected to mark the transition of the token to a proof-of-stake consensus algorithm. The timeline commences on June 9 and ends with the completion of the transition on June 30.

Cardano has gained nearly 60% against Bitcoin since the announcement of the Shelley upgrade. 1.6 billion ADA tokens are being held in 3,200 tokens. Data from IntotheBlock, which reveals the number of wallets that are either in the money or out of the money for each token, shows a preponderance of ADA wallets that are in the money. Investors may be confident that ADA could still have some upside momentum left in it and could induce some FOMO buying.

Technical Analysis

While the technical analysis on this piece was being written, price began to stage a huge rally. This can be seen on the weekly chart as the long bullish candle, which eventually hit the resistance at 0.00000867. This candle was able to breach the resistance zone defined on the chart between 0.00000623 and 0.00000646.

ADABTC Weekly Chart: May 28, 2020

A clearer


Bitcoin is now over $10,000 again. As world markets dip into further uncertainty, now is the time to navigate the crypto market.

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Analyst’s Disclosure: I am/we are long ADA-USD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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