Despite Shelley Incentivized Testnet Success, Cardano (ADA) May Still Have to Jump This Hurdle

Shelley is one of the five eras of Cardano’s development. Cardano roadmap gives a vivid detail of these eras with the specific capabilities and functionality each provides.

Already, the Incentivized Testnet phase of Cardano’s Shelley era which is the initial phase of the Cardano network being decentralized has begun. The Testnet was created to try out incentivization in a real-world scenario by allowing the ADA holder to earn real rewards by either delegating stake or running a stake pool.

The stake which refers to the ADA held on the Cardano network has its size related to the amount of ADA held.

The Shelley friends and family Testnet launched on 11th May marked a significant milestone for Cardano (IOHK).

ADA/USD Daily Chart

The Testnet had over 20 stake pool operators familiar with the IOHK experiment and give insight on how the Shelley mainnet would function. Charles Hoskinson, Cardano founder gave an overview of the exercise saying it was tremendously successful while pointing out that the usability aspect still needed to be worked on.

He also enunciated on the growth in the number of pioneers which stood at 32 at the time.

Hoskinson also mentioned that IOHK is set to roll out a couple of things in the days ahead stating an update on the Shelley node was slated for May 21. Alongside the Shelley node release, vital updates like the integration of the Haskell wallet backend will be carried out while another minor Shelley node update is slated for June 4th.

Cardano’s virtual summit also scheduled for last week in May has plans gearing up with five workstreams created.

Cardano(ADA), 12th cryptocurrency by market cap is trading at the moment at $0.0541.

Despite Shelley Incentivized Testnet Progress, This Hurdle Remains

In the past 14 days after a consolidation stint, Cardano bulls gained upper hand pushing ADA to $0.0571, a level last seen before the March market carnage. For ADA bullish momentum to be extended, intotheblock metrics indicate that there is a solid barrier ADA may have to squash.

In/Out of the Money Around Price. (Source: IntoTheBlock)

At the moment Cardano ADA has huge sell orders at key resistance levels which may act as a brick wall to its bullish momentum .“In/Out of the Money Around Price” (IOMAP) model from intotheblock reveals that 2,700 addresses bought almost 2.5 billion ADA at the $0.056 and $0.057 resistance level. The huge buy orders may indicate near term strength, but this may not be enough as the IOMAP reveals that ADA may have to cross this bridge to trend higher. Once this breach is squashed, Cardano bulls will then have the propensity to breach the $0.077 and $0.12 resistance level.

IOMAP also indicated that 71.3% of ADA holders had their average entry price lesser than the recent ADA price and are thus “In the Money.” Meaning they will profit in case of a Sell.

Analysts have however remained positive with ADA long term trend citing the enormous number of players “In the Money”.

In this kind of scenario, there are no absolutes, factoring in bearish market conditions, and crypto market volatility.

However, in the case of a near term reversal, $0.046 and $0.050 support holds steady as IOMAP indicated that 25,000 addresses bought roughly 7 billion ADA at these levels.

Image Credit: IntoTheblock, Shutterstock