Early on Friday, Cardano (ADA) is trading cautious after its slide lower as investors stay away from the crypto market ahead of the Fed’s Jackson Hole symposium, going along with Bitcoin which has broken down under the $48,000 mark it was trading at recently. At the time of writing, ADA/USD is trading at around $2.59.
Investors are staying out of the markets as they wait to hear on the Fed’s strategy and a possible timeline on when it could start pulling back on its asset purchase program. This has driven up the strength in the US dollar at the moment as investors move to its safety and away from trading riskier cryptocurrencies until more clarity emerges. Analysts expect higher levels of volatility among riskier instruments after Fed Chair Powell concludes his speech later in the day, which could potentially drive up interest in Cardano and other digital currencies once again.
Meanwhile, Cardano came under criticism from analytics agency Weiss Crypto for its decision to partner with Coinfirm to deploy AML/CFT analytics on its blockchain. According to the agency, the intense regulation the network could face as a result of this move could cause it and the ADA token to choke to death, just like the traditional banking system, as it goes against the principles of decentralization. These comments quickly received a strong retort from Cardano’s co-founder, Charles Hoskinson, who clarified that this development brings about greater transparency in business and technical requirements, and is a win from the compliance perspective.
Despite the current downtrend, analysts continue to maintain high expectations from Cardano as it gears up for its major network upgrade coming in mid-September. Recently, a crypto trade who made millions from investing in Dogecoin earlier this year revealed that he was planning to go ‘all in’ on the potential Ethereum killer, sharing a strongly bullish outlook on the cryptocurrency.
Key Levels to Watch
On the 4-hour chart of ADA/USD, most of the smaller timeframe moving averages as well as leading technical indicators MACD and momentum are exhibiting a bearish bias. However, the larger MAs – 100 EMA, 100 SMA, 200 EMA and 200 SMA, are indicating some buying interest as well.
Cardano’s price is holding a distance away from the pivot point at $2.43 and buying interest can take the price higher comfortably. In case of an uptick in buying, ADA can continue its climb higher smoothly until buyers counter resistance at $2.99.