This is my fundamental and technical analysis of Cardano symbol ADA as a short term to long term investment for my portfolio. Much more went into this analysis on the fundamental side than I have time and energy to write up here. This is a good summary of that work.
How many times did you wish that you could have bought Apple at $0.19 a share? It would've been a fabulous ride until now had you been able to do that. There are a handful of crypto's in the market today that have that kind of potential.
Today I want to focus on Cardano, symbol ADA . As I write this Cardano is currently trading at 19.1 cents up 21.27% on the day. I am buying additional Cardano at these prices. I have both short-term and long-term trading goals for this crypto currency. The majority of the Cardano I buy I do not intend to sell for quite a long time. About 10% of it I will use to trade on price movement as Cardano continues to move up. I believe that Cardano is a solid investment for anyone's crypto currency portfolio and I even recommend it to my friends who know nothing about crypto as a buy and hold.
ABOUT CARDANO
The Symbol ADA
Many wonder why Cardano has the symbol ADA which is unrelated to its name. Augusta Ada King-Noel, Countess of Lovelace (née Byron; 10 December 1815 – 27 November 1852) was an English mathematician and writer, chiefly known for her work on Charles Babbage's proposed mechanical general-purpose computer, the Analytical Engine. She was the first to recognize that the machine had applications beyond pure calculation, and published the first algorithm intended to be carried out by such a machine. As a result, she is sometimes regarded as the first to recognize the full potential of a "computing machine" and the first computer programmer.
Description of Cardano from the Website:
"Cardano (ADA) is a decentralized public blockchain and cryptocurrency project and is fully open source. Cardano is developing a smart contract platform which seeks to deliver more advanced features than any protocol previously developed. It is the first blockchain platform to evolve out of a scientific philosophy and a research-first driven approach. The development team consists of a large global collective of expert engineers and researchers."
Fundamental Analysis
Cardano is currently holding place number 7 in total cryptocurrency valuation at 4.9 Billion Dollars, with a daily trading volume of over $420 Million dollars. It is a very liquid coin, easy and fast to buy or sell.
Cardano (ADA) has been referred to as the Ethereum of Japan. Much like Ethereum (ETH), this cryptocurrency supports the launch of new coins on top of its blockchain platform. There are already token sales lined up that will take advantage of the ADA decentralized application (dApp) technology: Sp8de (SPX) and Traxia (TMT).
As more companies launch cryptocurrencies on the ADA network, It's superiority to Ethereum in speed, cost, and vastly greater processing capability will be demonstrated. New companies can launch tokens off of Cardano that will outperform at much lower cost. The first ICO to launch on Cardano will be the Traxia ICO which begins on March 19th. This coin is geared toward the invoice financing world – where there are subject matter experts (SMEs) and freelancers who often get stuck with accounts receivable from clients who don’t pay up. According to Traxia (TMT), there is a $43 trillion market full of unpaid invoices, and they are using blockchain technology to fix that.
Team, Structure, and Goals Mean Everything
Charles Hoskinson founder of Cardano, former CEO of Ethereum, has a goldplated resume in Blockchain projects. Hoskinson has assembled a top-notch team of developers. He is a scientist, a proven leader, yet a humble hard-working man, a true professional. He has implemented standards for code development that are unheard of in the block chain world until this time. And he submits the code from his project for outside peer review, another step no one else has taken. This slows the development of the project slightly but increases its solidity in design and construction immensely. This project is ground breaking in nearly every aspect. It is Ethereum 3.0 on steroids.
Hoskinson was interviewed recently at the ICO summit. He received tremendous recognition as he outlined the goals and upcoming projects of Cardano. The Cardano team has been working vigorously on the business plan, project charter, resource allocation, budgeting, and the development estimates for the project. The design team has been redesigning Cardano's architecture and its APIs and components to make it even more user-friendly. Plans are that large chunks of Cardano's code will be ported over during the coming months or replaced with new driver designs and this will speed up seating and network connectivity issues.
The upcoming release, named Shelley is a massive project that will turn the network fully over to the user database and fully implement decentralization. Io HK an entity of Cardano has developed a custom proof of state protocol called Ouroboros. This is a completely original design which is not a forced delegated proof of steak similar to that used by EOS. It's a pure proof of state protocol using every active ADA account as a factor in elections. Anyone who holds ADA has a probability of being elected as a slot leader who will generate blocks earning mining rewards if they participate in mining.
INVESTING AND TRADING IN CARDANO
As of today, Cardano is approximately 87% off of its all-time high price. It is down about 57% since its attempted price rally in February. The only thing unusual about this is the depth of the price decline in relation to the quality of this crypto. Of course, the major driving factor in the price decline is the collapse of Bitcoin's price since December.
Technical Analysis
Looking at my chart I will begin with the descending Bukowski wedge with the upper and lower trendlines are colored turquoise. Following the rules outlined for this wedge formation, we enter a trade when the price touches the bottom line for the third time, this would have been at about 12.3 cents on March 18. While very interested in Cardano, I did not buy even though the signal was given because of the condition of the overall market relative to Bitcoin. It increasingly appears that Bitcoin seems to have formed a bottom and in my opinion will likely move up to at least the 7400 level in this move. I feel it's safe to enter a trade both for the short-term and long-term in Cardano. The price has crossed the upper trendline of the descending wedge which is a very positive indication and also closed a daily candle above the nine day moving average indicated by the gray line. Volume is strong, and the RSI is mid range pointing up.
Price targets:
- The first resistance point I see will be when the price encounters the 50 day moving average at about $0.21.
- The next less formidable resistance line is at $0.25.
- When the price reaches $0.33 there is stronger resistance
- 40.4 cents is the next resistance line which coincides with the Fibonacci 0.5 level
- Next significant resistance line is at about $0.68
- I'm setting the short to mid term target price at $1.03
There is no way to estimate the high price for Cardano, but I think the $50 to $500 range longer term is reasonable based on similar concepts with less merit.
My stop loss is at 13.4 cents. This stop is not for margin trading, I do not margin trade. Again, I am only trading with 10% of my total position in Cardano purchased yesterday. The other 90% of my purchase will be added to my long term portfolio. I have additional holding of Cardano that were actually purchased at higher prices during the decline, they are part of my long term portfolio.
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All statements and expressions I offer are my opinions, and not meant as investment advice or solicitation. Information provided is not personal investment advice. Seek guidance from a professional investment advisor before trading or investing. Trading cryptocurrencies can be a potentially profitable opportunity for investors. You should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly, do not invest money you cannot afford to lose. I am not a registered investment advisor.
Wishing you success,
Isaac
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Cardano is still years behind delivering what they promised. Apple had a working business model and products.
Good post. I agree, it's a steal at its current price and as the various parts of the ADA roadmap are rolled-out this year, the price should really take off.
Thanks, It's nice to get feedback. It takes hours of work to research, analyse and write up a crypto in this fashion.
I know, maybe when we get our ratings up to 55, 60+, things will be different.