Tag: Cardano

Categories
Blockchain and DLT

What makes Cardano blockchain unique?

Cardano is a promising smart contracts development platform that is built on a Proof-of-Stake blockchain protocol. The platform was launched in 2017 by its founder, Charles Hoskinson, who is also the co-founder of Ethereum. 

Cardano is a promising smart contracts development platform that is built on a Proof-of-Stake blockchain protocol. The platform was launched in 2017 by its founder, Charles Hoskinson, who is also the co-founder of Ethereum. 

Cardano is a promising smart contracts development platform that is built on a Proof-of-Stake blockchain protocol. The platform was launched in 2017 by its founder, Charles Hoskinson, who is also the co-founder of Ethereum. 

ADA is the native digital currency of the Cardano blockchain used to pay smart contracts developers and other participants on the blockchain network. As such, its value is tied to the participants’ activities on the platform. As more developers build solutions on the platform, the demand and value of the ADA coin increases. Besides acting as an asset, ADA is also used as a medium of transferring and receiving funds instantly at an affordable fee. Since the platform was launched, Cardano’s ADA crypto has seen an increase in the value of up to 1,520%, with a current market cap of over $3 billion. 

What’s Unique about Cardano blockchain 

There are two main attributes of Cardano’s blockchain that sets it apart from the rest of the blockchain networks. First is its academic and mathematical framework, which is committed to maintaining a provably secure blockchain that is less prone to security attacks. 

Building on its academic approach, Cardano blockchain also aims to solve the scalability and interoperability problems facing the blockchain ecosystem. Additionally, the platform seeks to offer financial services without thwarting global regulators, which isn’t the case with other competing blockchain networks. 

Given its ambitious objectives, Cardano describes itself as the third generation blockchain. 

Essentially, this means that the platform is improving on the shortcomings of the previous blockchain generations. Let’s look at each of the two generations for a better understanding: 

i. First blockchain generation

The first blockchain generation started with the conception of Bitcoin. At this time, Proof-of-Work was the only known algorithm that facilitated the mining of new cryptos – in this case, Bitcoin. However, with time the protocol’s underlying issue, scalability, became apparent as Bitcoin transactions increased. This gave birth to the second Bitcoin generation.

ii. Second blockchain generation

The scalability problem resulted in slow Bitcoin transaction speed, which the second blockchain generation managed to solve through the introduction of the Ethereum blockchain that is expected to run on the Proof-of-Stake algorithm. Usually, Bitcoin’s block time takes almost 12 minutes while that of Ethereum takes less than 14 seconds. Moreover, Ethereum managed to prove that blockchain technology can be used for more than just cryptocurrency transactions, as evident from the introduction of smart contracts. 

Despite the success, transactions on Ethereum blockchain are relatively slow compared to those of traditional systems such as Visa. Also, the governance systems of the two blockchains proved to be unstable after both Bitcoin and Ethereum cryptos hard forked. It is at this point where Cardano blockchain comes in. 

iii. Third blockchain generation

As a third blockchain generation, Cardano is built as a comprehensive set of tools that allow for greater scalability and interoperability of existing cryptocurrencies and blockchain concepts. Also, unlike other blockchain networks, Cardano doesn’t attempt to replace global regulators. Instead, the platform has placed much emphasis on accommodating financial regulators to increase the widespread adoption of cryptocurrencies. Further, the non-profit foundation that maintains Cardano has partnered with researchers to ensure all development concepts on the platform are of the highest quality. 

Cardano’s Architecture 

Cardano’s blockchain architecture is multifaceted to achieve its three main objectives: increased scalability, interoperability, and sustainability. To start with, the blockchain itself is designed as an open-source project written in a security-focused programming language, Haskell. Unlike other coding languages, Haskell is compiled ‘ahead-of-time,’ making it ideal for high-throughput data processing. 

Besides the secure coding language, Cardano’s blockchain runs on a unique Proof-of-Stake protocol known as Ouroboros. This protocol defines the way nodes reach a consensus on the state of the ledger. Additionally, the Ouroboros protocol facilitates the secure transfer of the native ADA coin while also maintaining the safety of smart contracts on the blockchain. 

How the Ouroboros supports mining of new blocks

Similar to a typical Proof-of-Stake algorithm, the Ouroboros rewards token holders who stake their ADA on the network. From this pool of token holders, block miners are randomly selected using a mathematical model that guarantees all holders have a fair chance of mining a block and receiving the associated reward. 

Once a token holder is selected, they are assigned the role of a ‘slot leader.’ With this role, the leader has the power to publish a new block, which is then validated by the rest of the network participants. After validation, the slot leader receives an ADA token as a reward for mining a new block.

Cardano Layered design

As part of its architecture, Cardano’s blockchain network consists of two main layers – the Cardano settlement layer (CSL) and Cardano computational layer (CCL). The (CSL) is the primary layer that manages the staking of ADA cryptocurrency under the Proof-of-Stake algorithm. It also facilitates the transfer of ADA from one wallet to another and enables participants to create their assets. Just the same way, Ethereum blockchain actors can create ERC-20 tokens. 

The CCL, on the other hand, allows users to create rules for evaluating transactions before they pass to the CSL. This gives Cardano the ability to compute and evaluate transaction settlements on different layers, unlike in Ethereum blockchain, where it all happens on the same network. 

Solving inherent Blockchain problems

Having understood Cardano’s architecture, here’s how the integrated design works to solve the three main blockchain challenges; 

1. Scalability

As mentioned earlier, Cardano runs on the Proof-of-Stake algorithm, Ouroboros, which, unlike Proof-of-Work, doesn’t require all nodes to keep a copy of the entire blockchain. This approach enables faster transaction processing while reducing the energy cost needed to publish a new block. Moreover, the Cardano blockchain can split into slots, which are basically sub-blockchains. These slots are known as epochs from which the mining node is given the aforementioned ‘slot leader’ role.  

A single epoch can be partitioned infinitely, meaning that Cardano blockchain is, in theory, infinitely scalable. As such, it is possible to run as many transactions as needed without hitting a snag. 

2. Interoperability

Interoperability, in the blockchain’s context, refers to the ability of different blockchain networks to exchange data. With this in mind, Cardano aims to establish interoperability between blockchains and legacy systems of the financial industry. Think of transferring money from Ethereum ICOs, for instance, to a bank account via SWIFT. 

To achieve an ecosystem of connected networks, Cardano is exploring the concept of side chains. The concept works by linking both off-chain and on-chain networks via a two-way peg. Cardano is also exploring ways for individuals and financial institutions to selectively broadcast transactions metadata in compliance with Know Your Customer (KYC) and anti-money laundering (AML) policies. 

3. Sustainability

Cardano’s sustainability seeks to promote the future development of the blockchain network by ensuring the project is under sound management and has access to sufficient funds. 

While ICOs and patronage are the most common models for raising funds and managing a blockchain project, they pose a risk of centralization. This risk arises when a well-endowed company invests a huge amount of grant to a project and thus has authoritarian control over the development of a project. For this reason, Cardano has adopted a long-term financing model similar to the one created by Dash cryptocurrency. 

In this model, there is an entity known as the Treasury that holds grants. Every time a new block is added to the chain, part of that block’s reward goes to this entity – the Treasury. 

So, when developers want to contribute to the Cardano blockchain’s growth, they’re required to submit their proposal to the Treasury to ask them for grants. The Cardano ecosystem stakeholders will then vote on the viability of the proposal and decide whether to give the developer grants. If approved, the developer will be awarded the grant for development. 

Using this financing model, the control and development of the entire Cardano blockchain is left at the hands of the participants, thereby eliminating bureaucracy. This also goes a long way in preventing forking since changes/development of the network are implemented if only a majority of the voters approve it. 

Conclusion

Cardano can be described as a futuristic project committed to driving mass adoption of blockchain and cryptocurrencies. Its academic and research-driven approach to blockchain advancement is indeed a noble and worthy cause to solve the problems hindering blockchain adoption. However, the project’s feasibility remains theoretical; therefore, its success depends largely on the execution of the development plans. 

Categories
Cryptocurrencies

Most Important Cryptocurrencies Apart From Bitcoin Part 2

1. Tether (USDT)

1. Tether (USDT)

1. Tether (USDT)

Tether was one of the pioneers of a new class of cryptocurrency known as stablecoins. Stablecoins are cryptocurrencies that avoid the legendary volatility of cryptocurrencies by being pegged to real-life assets. The cryptocurrency industry, including Bitcoin itself, is known for unpredictable price swings that can wash out gains in a matter of hours. This volatility is also the reason why cryptocurrencies have been slow at real-life adoption since users fear making losses. Stablecoins such as Tether exists to provide cryptocurrency users with both security and speed of cryptocurrencies with the stability of Fiat currency. 

Launched in 2014 by Tether Holdings, the project describes itself as a “blockchain-enabled platform designed to facilitate the use of Fiat currencies in a digital manner.” What this means is that Tether users also get to sidestep the complexity sometimes associated with crypto. As of July 18, 2020, Tether’s per-token value is $0. 997473, with a market cap of 9.2 billion. It currently occupies the third spot right after Bitcoin and Ethereum.

2. Bitcoin Cash (BCH)

Created in August 2017, Bitcoin Cash is one of the most recognizable altcoins. This is because it was born of a contentious hard fork of the Bitcoin blockchain. At that time, the Bitcoin community was split into two. One faction was against the idea of splitting the chain, while the other argued that for Bitcoin to reach its potential, it had to be able to process more transactions at each time.

Be that as it may, it’s one of the most successful forks of the dominant currency. The source of that success is probably the currency’s compelling offering of a much faster Bitcoin network. This it does by increasing the size of blocks, and as a result, a number of transactions each can hold. 

Satoshi Nakamoto intended Bitcoin to be a peer-to-peer electronic currency that could be used for day-to-day purchases. However, as the coin gained mainstream traction, so did transactions increase on the network, and the network slowed down due to the limited 1MB block size. The block limitation meant that one block could only handle a limited number of transactions, causing transactions to queue up and clog the network. 

Bitcoin Cash’s solution was to increase the block size to 8 MB, thus permitting more transactions to be held in one block. While one block on Bitcoin can hold between 1000 and 1500 transactions, one block on Bitcoin Cash can handle tens of thousands. As of July 2018, BCH’s price was $225.36. It occupied the 5th position in the market with a market cap of 4.2 billion.

3. Libra (LIBRA)

The decision to add Libra to this list can certainly raise eyebrows but bear with us. Important here can mean the scale and magnitude of a cryptocurrency’s potential disruption or simply the power of the outfit behind it. And going by those two yardsticks, Libra is, to put it mildly, important. 

The currency is set to be launched by Facebook. When Facebook broke out the news last year, it said the currency would launch in 2020, but at the time writing, we’re yet to see that happen. 

As would be expected, the news was met with mixed reactions. Some people were excited about the potential of a powerful entity such as Facebook, helping to push the concept of crypto into the mainstream. Others, especially regulators, met the news with indignation. The reason for this was twofold. 

One was Facebook’s unflattering history with how it has dealt with users’ data and privacy. Regulators submitted that Facebook would sell user data to advertisers, and then we’d have a repeat of the Cambridge Analytica debacle. The other reason was due to Facebook’s massive worldwide reach – we’re talking about billions of users – which regulators argued would undermine the global financial system. 

The reason for the cryptocurrency’s launch delay is probably its going back to the drawing board to create a cryptocurrency that can appease regulators. In July last year, David Marcus, the project’s head, in remarks prepared for US lawmakers said that Libra would be “the broadest, most expensive, and most careful pre-launch oversight by regulators and central banks in fintech’s history,” and that Facebook wouldn’t launch the crypto until it had “fully addressed regulatory concerns.” Upon launch, the project will be overseen by Switzerland-based Facebook’s subsidiary, Calibra.

4. Monero (XMR)

Monero is one of the cryptocurrencies that have been created to make up for Bitcoin’s less than satisfactory privacy approach. While the Bitcoin blockchain does not reveal a user’s identity, all its transaction history is out there for the whole world to see. With enough resources and dedication, an entity can trace down the real-life owner of a transaction. 

Created as a fork of Bytecoin in April of 2014, Monero is a privacy-oriented cryptocurrency whose development was completely donation-dependent and driven solely by the community. It utilizes “ring signatures” to anonymize transactions. A ring signature is a cryptographic signature in which several signatures are merged together, with all of them appearing valid, while in actuality, only one is. This makes it impossible to single out the real signature.

This level of privacy for Monero has caused it to become the go-to currency for clandestine dealings and criminal activities. No matter the reputation it has acquired, though, Monero has enormously contributed to the crypto space in its offerings. So, let’s see how Monero is doing in the market. At the time of writing, Monero has a per-token value of $68.63, with a market rank of #15 and a market cap of $2.1 billion.

5. Cardano (ADA)

Created by Charles Hoskinson and launched in September 2017, Cardano is a cryptocurrency platform on which people can send and receive value in a decentralized, peer-to-peer, and safe manner. Through this, Cardano wants to make the world “work better for all.” The cryptocurrency has been nicknamed the Ethereum killer, and given its rapid rise to the coveted top 10, it wouldn’t be a surprise if this prophecy came true in a few years.

Cardano has taken a unique and intriguing approach to its development process. Apart from being originally peer-reviewed by blockchain experts, academics, and researchers from various universities, protocol updates have to undergo the same round of evaluation by experts. Cardano’s rationale for this rigorous process is to ensure that the platform meets the highest standards for security, scalability, and efficiency, ultimately granting users a quality experience. 

Cardano is one among many third-generation cryptocurrencies, which is a term used to describe cryptocurrencies that seek to improve upon the deficiencies of the first generation (Bitcoin) and second-generation blockchains (Ethereum). As of July 19, 2020, Cardano has a per-token value of $.0123970 and is the sixth-largest cryptocurrency with a market cap of 3.2 billion.

6. EOS (EOS)

EOS is one interesting cryptocurrency in part because no one knows what ‘EOS’ stands for and because it rose to the high sanctums of cryptocurrency riding on a wildly successful ICO that raised $4 billion. The crypto was created by Dan Larimer, who is also the founder and co-founder of successful crypto projects BitShares and Steemit, respectively.

Just like Ethereum, EOS seeks to provide a platform for developers to create decentralized applications. Unlike Bitcoin and Ethereum that use the power-hungry proof-of-stake consensus mechanism, EOS uses a delegated proof-of-stake mechanism that is not only energy-efficient but also allows it to achieve an impressive TPS (transactions per second) capability of 1000+. As of July 19, 2019, EOS traded at $2.50 had a market cap of $2.3 billion that positioned it at #12 in the market. 

Categories
Cryptocurrencies

Most Important Cryptocurrencies Apart From Bitcoin

As the most popular and successful cryptocurrency, Bitcoin enjoys most of the spotlight. For this reason, it’s easy for most people to think that cryptocurrency is synonymous with Bitcoin. Indeed, a YouGov study reported 75% of US adults knew about Bitcoin, while other cryptocurrencies such as Bitcoin Cash and Ethereum were each known by less than 30% of the population. 

As the most popular and successful cryptocurrency, Bitcoin enjoys most of the spotlight. For this reason, it’s easy for most people to think that cryptocurrency is synonymous with Bitcoin. Indeed, a YouGov study reported 75% of US adults knew about Bitcoin, while other cryptocurrencies such as Bitcoin Cash and Ethereum were each known by less than 30% of the population. 

As the most popular and successful cryptocurrency, Bitcoin enjoys most of the spotlight. For this reason, it’s easy for most people to think that cryptocurrency is synonymous with Bitcoin. Indeed, a YouGov study reported 75% of US adults knew about Bitcoin, while other cryptocurrencies such as Bitcoin Cash and Ethereum were each known by less than 30% of the population. 

If you’re an aspiring user of cryptocurrencies, or simply interested in that world, it’s important to acquaint yourself with other forces in the space. This article takes a look at other cryptocurrencies that have proved themselves worthy of attention and, of course, investor money. But before we get into that, let’s do a refresher on this new and exciting asset class. 

What are Cryptocurrencies? 

It’s necessary to do a recap of what cryptocurrencies are because many people associate the word cryptocurrency with just Bitcoin. So, when we are talking about cryptocurrencies and altcoins, what do we mean? A cryptocurrency, at its most basic definition, is a purely digital and internet-based currency that’s secured with modern cryptography and utilizes a ledger that is distributed across network participants. The most common type of distributed ledger is a blockchain. The blockchain concept always existed in the computer space but was only actualized in 2009 by the creator of Bitcoin, Satoshi Nakamoto.

The ‘crypto’ in cryptocurrency refers to the cryptography that is used to encrypt and hence secure cryptocurrencies and transactions. Cryptocurrencies subscribe to the tenet of decentralization, which means free from state manipulation or control and self-issuance. Cryptocurrencies are designed as code – almost always open source, with in-built mechanisms for issuance. These mechanisms vary from one cryptocurrency to another. 

As you probably already know, Bitcoin is the first-ever and most successful of cryptocurrencies. All other cryptocurrencies apart from bitcoin are collectively referred to as altcoins. Currently, there are more than 5,000 altcoins, according to Coinmarketcap. The total market valuation of cryptocurrencies is currently 269 billion, with Bitcoin taking the lion’s share with 62.3 billion in market valuation. Many of these coins have been designed to improve on Bitcoin in one way or another – either on security or speed or ease of storage (e.g., in terms of space). 

With that background, let’s look at some of the most important cryptocurrencies apart from Bitcoin.

1. Ethereum (ETH) 

Ethereum is a cryptocurrency and blockchain launched in 2015. The project is the brainchild of Vitalik Buterin, a Russian-Canadian programmer. Industry experts view Ethereum is the next most important crypto after Bitcoin. Let’s examine why. 

Ethereum is the next cryptocurrency that brought a ground-breaking product into the blockchain space. The project is more than a digital finance platform. Its main objective is to be a decentralized applications and smart contracts platform. Decentralized applications (DApps) are a new kind of application that can run without downtime and are free from control, manipulation, and censorship by a third party.

Smart contracts are a new kind of contract – not unlike the traditional contracts, but this time is purely digital, self-enforcing, unalterable, and completely transparent to all relevant parties. 

Applications on the Ethereum platform are powered by its native token called ether (ETH). Ether is the currency in which people using the Ethereum blockchain pay in transaction fees. As an investor, you can also use Ether as a store of value. Ether is the second most successful cryptocurrency after Bitcoin – even though it trails behind the dominant currency considerably.

In 2014, Ethereum launched a pre-sale (an initial coin offering ICO) to fund the project. The effort was incredibly successful and is credited with helping usher in the age of the ICO. Ethereum has also weathered one of the biggest security breaches in the history of cryptocurrency – the DAO attack in 2016. This attack led to the split of the Ethereum blockchain, birthing Ethereum (ETH) Ethereum Classic (ETC). As of July 18, 2020, ETH has a market capitalization of $26 billion, and one ETH is going for $232.93.

2. Ripple (XRP)

Launched in 2012, Ripple is a cryptocurrency and a real-time digital payments network. The project was created by Chris Larsen and Jed McCaleb.

Ripple’s protocol facilitates the global, peer-to-peer, decentralized, and real-time exchange and transfer of money in any currency, whether it’s the US dollar, Japanese Yen, Bitcoin, Ethereum, and so on. XRP can settle transactions within 3 to 5 seconds. 

XRP is the platform-specific asset of the Ripple network. Individuals can exchange XRP between each other without the need for an intermediary. It’s the go-between currency in any exchange that happens on the Ripple network. 

Ripple’s transaction confirmation mechanism differs from that of Bitcoin in that it does not utilize ‘mining.’ All XRP tokens were ‘pre-mined’ or ‘minted’ before launch, meaning there is no release of new coins over time. Indeed, Ripple ‘burns’ XRP tokens immediately after they facilitate a transaction, in a bid to avoid inflation. Ripple’s no-mining approach is a massive save on power, and it also considerably aids the network to achieve incomparably faster transactions. 

For a long time, XRP occupied the third spot in the crypto market. However, it has been knocked down to the fourth spot. As of July 18, 2020, XRP is trading at $0. 194295, with a market cap of $8.6 billion.

3. Litecoin (LTC)

Litecoin is a cryptocurrency that is modeled after Bitcoin but aims to be more lightweight and scalable. It was launched in 2011 and is a brainchild of former MIT graduate and Google engineer Charlie Lee. 

Litecoin is often called the “silver to bitcoin’s gold.” It’s a “lite” version of Bitcoin only with more coins, faster transactions, and a different hashing algorithm. While Bitcoin uses the SHA-256 algorithm, Litecoin utilizes one known as “Scrypt.” 

Another difference is Bitcoin’s circulation can never exceed 21 million, while Litecoin is designed to help 84 million coins. This might not mean much for either currency in terms of real-world usage since both are divisible to very tiny amounts. Litecoin is also way faster in terms of transaction confirmation time. While Bitcoin’s transactions can take up to 10 minutes, Litecoin takes about 2.5 minutes. Litecoin is also one of the cryptocurrencies that have enjoyed significant merchant adoption. 

So how is Litecoin performing today? Well, as of July 18, 2020, Litecoin traded at $41.95, with a market cap and rank of 2.7 billion and #9 respectively.

4. Chainlink (LINK)

Launched in September 2017, Chainlink, a project by FinTech company SmartContract Chainlink Limited SEZC, has seen the success that few cryptocurrencies do within such a short period. Perhaps this is because of its unique proposition of providing an oracle system that allows on-chain contracts to utilize external data, greatly expanding the capability of smart contracts. 

Courtesy of this feature, Chainlink has deep-running relationships with a lot of other innovative blockchain projects, a factor that’s given it a leg-up in the space. Some of these partnerships include Synthetix, Loopring, Aave, Ampleforth, and Binance. The project has also managed to secure other significant partnerships out of the blockchain space, including Google, Oracle, Gartner, Brave New Coin, and Web3 Foundation. 

Thus far, Chainlink has no competitor, and this has given it the dominance as far as its selling point is concerned. As of July 19, 2018, Chainlink’s price was $7.96, and, with a market cap of 2.8 billion, it was the 8th largest cryptocurrency.

 

Categories
Forex Assets

Analyzing The ‘ADA/USD’ Crypto-Fiat Asset Class

Introduction

Introduction

Introduction

Cardano is a decentralized platform allowing programmable transfers of value securely in a scalable fashion. It is the first blockchain created out from a scientific philosophy. It is also the first research-driven cryptocurrency that is built on the Haskell programming language.

Cardano is traded with the ticker ADA. It has a market capitalization of $2.2 billion. It can be bought, sold, and exchanged in several cryptocurrency exchanges. Apart from USD, it can be traded against other cryptos such as BTC, ETH, USDT, etc.

Understanding ADA/USD

The price of ADA/USD depicts the value of the US Dollar equivalent to one Cardano. It is quoted as 1 ADA per X USD. For example, if the market price of ADA/USD is 0.086112, then each ADA will be worth 0.086112 US dollars.

ADA/USD specifications

Forex brokers allow trading of only a few popular cryptocurrencies like Bitcoin, Ethereum, Ripple, etc. The other cryptos must be traded via cryptocurrency exchanges. And the working of these exchanges is different from that of forex brokers. As a major difference, cryptos are not traded in lots, in cryptocurrency exchanges.

Spread

Spread is the difference between the buying and selling price of the cryptocurrency. Crypto exchanges match these prices between induvial traders. Thus, there is no fixed spread. Also, typically, the spread is negligible in trading cryptos.

Fee

There are different fees charged by cryptocurrency exchanges for trading any coin. The various forms of fees include

  • Execution fee (Taker or Maker)
  • 30-day trading volume fee
  • Margin opening fee, if applicable

Note that the taker or maker fee will be considered for opening as well as closing the trade, and will depend on the value being traded.

Example

  • Short 10,000 ADA/USD at $0.085800
  • 30-day volume fee is $0
  • Order is executed as Taker

Total cost of the order = 10000 x $0.085800 = $858

Assuming the taker fee to be 0.26%, the opening fee will be – $858 x 0.26% = $2.23

Assuming the trade is opened with leverage, and the margin opening fee is 0.02%, the fee is calculated as – $858 x 0.02% = $0.17

If the order is closed at $0.095800, the total cost of closing will be 10,000 x $0.095800 = $958. And the fee for the same obtained is – $958 x 0.26% = $2.5

Thus, the total fee for the opening, maintaining and closing the trade would be equal to – $2.24 + $0.17 + $2.5 = $4.91

Trading Range in ADA/USD

The trading range represents the number of units moved in the pair in a specified time frame. For example, if 10,000 ADA/USD is traded and the average unit movement in the 1H time frame is 0.000778, then it means the pair will yield 10,000 x 0.000778 = $7.78.

Note: the above values are for trading 10,000 units of ADA/USD. If X units are traded, then the ATR values will be,

(Above ATR value / 10,000) x X units

Procedure to assess ATR values

  1. Add the ATR indicator to your chart.
  2. Set the period to 1
  3. Add a 200-period SMA to this indicator.
  4. Shrink the chart so you can assess a large time period
  5. Select your desired timeframe
  6. Measure the floor level and set this value as the min
  7. Measure the level of the 200-period SMA and set this as the average
  8. Measure the peak levels and set this as Max.

ADA/USD Cost as a Percent of the Trading Range

The following tables depict the variations in total cost in terms of percentage based on the change in volatility and time frame.

Taker Execution Model

Opening = $2.23 | Margin fee = $0.17 | Closing = $2.5

Total fee = Opening + Margin fee + Closing = $2.24 + $0.17 + $2.5 = $4.91

Maker Execution Model

Opening = $1.37* | Margin fee = $0.17 | Closing = $1.53*

Total fee = Opening + Margin fee + Closing = $1.37 + $0.17 + $1.53 = $3.07

*Assuming maker fee to be 0.16% the trade value.

Trading the ADA/USD

Cardano stands 10th in CoinMarketCap in terms of market capitalization. Thus, making it a tradable pair in the crypto market. Almost all forex brokers do not ADA enabled for trading, so it must be traded through cryptocurrency exchanges. The fee structure here is quite different from forex brokers. However, the overall fee is more or less the same.

Comprehending the above tables, the magnitude of the percentage depicts how expensive/cheap a trade will be relative to the time frame and profit/loss. Let us understand this with an example.

The average values in 4H and 1D are 26.65% and 9.73%, respectively. The percentage in the 4H time frame is greater than the percentage in the 1D time frame. This means that the total cost for both is the same ($4.91), but relative to the generated profit, it is higher in the 4H time frame. A detailed reason for this can be given from the trading range table.

In the trading range table, the corresponding values are $11.52 and $31.55. This can be interpreted as, an average of $11.52 will be generated in trading the 4H time frame, and $31.55 when trading the 1D time frame. The fee in both cases is the same. Thus, we infer that the fee that is paid to generate $31.55, the same fee is deducted for generating $11.52. And hence, this is exactly what the higher percentage value depicts.

Reading through the row, the percentage values for a time frame is highest in the minimum column and least in the maximum column. So, if you’re are able to deal with higher volatility, it is ideal to trade when the volatility is around the average or maximum values. And if you cannot deal with the high volatility, you may trade the higher time frames to reduce the relative costs.

Categories
Crypto Guides

Formal Verification – A Method That Makes Smart Contracts Extra Secure!

Introduction

Introduction

Introduction

The smart contracts are now used extensively in the crypto and blockchain space for various use cases, especially for transactions involving a very high volume of money. Hence, it has been more critical than ever to check out smart contracts for any vulnerabilities. These vulnerabilities are the reasons for hacking some of the cryptocurrency platforms, even though the blockchain network is very secure. Hence the timely audits and formal verifications are must both concerning hardware and software to ensure optimal security.

What is Formal Verification?

Formal verification is a method used to check whether the software of hardware systems matches the intended requirement. A particular type of mathematical technique is used to know the intended requirement matches or not. Using these mathematical techniques to check the level of the algorithm of correctness as per the requirement is known as formal verification.

Testing hardware or software with formal verification can be broken down into 2 phases, validation, and verification. Validation determines whether the product meets the user’s needs while verification is testing whether the product works as per the specifications provided.

While formal verification used to be done mostly for the hardware components, it is increasing the testing in software components as well. As there is no third-party involvement in vast transfers of the money, these are autonomous transfers. Hence, smart contracts should be robust enough without any faults.

Why is Formal Verification used for Smart Contracts?

Ethereum is a Turing complete machine, started utilizing the concept of smart contracts. Hence an analysis has been done on around one million smart contracts of Ethereum to check their robustness. It has been found that nearly around 32,000 contracts are faulty. The contracts are seen to be flawed because they were found to either lock the funds indefinitely or release the funds to arbitrary users, and anyone could kill the contract.

Given the nature of the immutability of smart contracts, if these problems aren’t detected before the deployment of the agreement, it will create serious issues once the code is deployed.

Platforms using formal verification

Many platforms that are using smart contracts robustly are trying to integrate formal verification into their platforms. Let us see some of them below:

Cardano

Cardano’s smart contract language is Plutus, which is based on Haskell. Cardano is basically written in Haskell. Cardano is designed with the Cardano computational layer, which by default consists of two layers while one allows formally specified languages used for checking the code of the smart contract, and the other is a defined officially virtual machine and language framework. The default layers’ goal is to check the smart contracts to avoid severe vulnerabilities in smart contracts without any additional requirements.

Ethereum

Ethereum has been trying to incorporate formal verification for a long time now since it has many smart contracts functioning on the platforms. They have even come up with a publication called “making smart contracts smarter.” This publication focuses on smart contracts bugs and mainly focuses on ways to mitigate them. This includes the change in operational semantics of Ethereum to inbuilt formal verification.

There are certain challenges in implementing formal verification in the Ethereum platform. One is gas limits, and the other one is its solidity programming language. To understand solidity, it should be compiled into bytecode. The compiler changes rapidly, so the verification tools should be in tandem with the speed of the compiler.

Conclusion

Measuring the positive impact of formal verification in the smart contracts will take some time since the adoption is slow. Many are realizing just yet the vulnerabilities of smart contracts, and given its substantial financial transactions, the weaknesses should be captured effectively and curtailed at the very beginning to restrict the losses.

Categories
Cryptocurrencies

Your Complete Guide to Cardano

Launched in 2015, Cardano has defied expectations to rise to the top ten in market capitalization. For those not privy to the inner workings of the Cardano project, it can be hard to pin down what has catapulted its rise to the highest sanctums of cryptocurrency, despite being less than popular on the price side.

Launched in 2015, Cardano has defied expectations to rise to the top ten in market capitalization. For those not privy to the inner workings of the Cardano project, it can be hard to pin down what has catapulted its rise to the highest sanctums of cryptocurrency, despite being less than popular on the price side.

Launched in 2015, Cardano has defied expectations to rise to the top ten in market capitalization. For those not privy to the inner workings of the Cardano project, it can be hard to pin down what has catapulted its rise to the highest sanctums of cryptocurrency, despite being less than popular on the price side.

Nicknamed the “Ethereum Killer,” Cardano has an intriguing approach and pretty remarkable technology.

So, what is it about Cardano that makes it worthy of the “Ethereum Killer” tag? In this guide, we’ll find the answer to that query, as well as explore some of the exciting innovations of this project.

What is Cardano?

Cardano is a cryptocurrency project and blockchain-based smart contracts platform. Cardano believes digital cash is the future of money and aims to create a platform in which people from all over the world can send and receive money in a fast, direct, and secure manner.

Cardano was conceptualized by Charles Hoskinson, an Ethereum cofounder. He calls it a third-generation cryptocurrency – meaning it exists to improve on the scaling problems and other weaknesses of the first generation (Bitcoin) and second-generation (Ethereum) blockchains.

Cardano uses the new Haskell programming language, a ‘functional language’ that enables mathematical proofing of the code’s future behavior.

The Cardano platform has a native cryptocurrency known as ADA, with which users can send digital funds. It also houses two layers: the Cardano Settlement Layer (CSL) and the Control Layer. CSL is used to settle transactions that are conducted with ADA, while the Control Layer will be used to host smart contracts.

Who is Behind Cardano?

Three distinct organizations have pooled resources together to create Cardano. There’s the Cardano Foundation, a Switzerland-based standards body whose job is to support the Cardano community and fulfill regulatory and compliance requirements. The other is Input Output Hong Kong (IOHK), a well-known organization in the cryptosphere. And then there is Emurgo, a startups investor tasked with assisting businesses to build on the Cardano blockchain.

What’s Special with Cardano?

Unlike its contemporaries, Cardano is a peer-reviewed blockchain. Before protocols are greenlit for release, they’re first reviewed by a network of academics and researchers from various universities. While other blockchain projects present just a white paper, the Cardano team goes the extra mile and crafts several academic papers for researchers, investors, and so on.

The rationale behind this? The team wants to ensure that the platform is secure, scalable, and fit for mass usage once it goes mainstream. As such, there’s much scientific rigor involved as there would for a mission-critical system.

How Does Cardano Work?

As previously mentioned, the Cardano comprises a Cardano Settlement Layer and a Control Layer. In the long term, Cardano hopes to be used as a medium of exchange and a smart contract platform that can be interoperable with the traditional banking system.

At the very heart of Cardano is Ouroboros. Ouroboros is an algorithm-based Proof of Stake Protocol through which miners can mine ADA. The protocol is also custom-built in a manner that saves as much energy and time as possible.

What does Ouroboros entail, you wonder? Let’s find out below.

What is Ouroboros?

Ouroboros works based on ‘slot leaders’ who are akin to miners in the Proof of Work protocol. Slot leaders are the ones who determine which blocks will be added on the blockchain, with a maximum of only one block per slot leader at any time. Time is divided into ‘epochs,’ and every epoch has a slot leader. Also, immediately after one epoch ends, another one begins.

In case a slot leader misses their chance to choose a block leader for one reason or another, they have to wait until the next time they’re eligible to become block leaders. In every epoch, at least more than 50% of blocks has to be generated. 

To be eligible for a slot leader position, a participant has to own at least a two percent stake in Cardano.  Slot leaders are also electors. When an epoch is in progress, electors choose the slot leaders for the next epoch. Also, the more stake you own in Cardano, the bigger your chance of being selected as a slot leader.

Now, slot leaders wield a considerable amount of power. For this reason, extra caution must be exercised to ensure as much fairness as possible. Cardano achieves this by implementing a ‘multiparty computation’ (MPC). In an MPC, each elector conducts a random action known as “coin tossing,” after which they share their results with the rest of the electors. In short, the end result is randomly generated, but the final value is collectively arrived at.

Statistics of Cardano (ADA)

As of 28th January 2020, Cardano is trading at $0.051903, with a 10th place market capitalization of $1, 345, 697, 885. Also, its 24-hour trading volume is $179, 384, 436. Its all-time high was $1.33 on Jan 04, 2018, while its all-time low was $0.017354.

ADA’s circulating supply is 27, 927, 070, 538, while its total supply is 31, 112, 483, 745. The coin has a limited supply of 45 billion.

Is Cardano an Ethereum Killer?

Cardano has been dubbed the “Ethereum Killer” since it offers the same functionalities as Ethereum, but better.

Also, it is the first blockchain platform that utilizes peer-reviewed research, giving it an edge over other cryptos, at least in terms of rigorousness.

As well, Cardano has an impressive speed of 257 transactions per second (TPS), which stacks strongly against Ethereum’s current meager 15. Its Ouroboros proof of stake is superior over the typical proof of stake by being the first consensus mechanism to be mathematically proven as secure.

These features, and more, make Cardano an impressive blockchain. But that doesn’t mean it’s about to dethrone Ethereum, not yet.

First of all, Ethereum is a project under continuous improvement. Its developers are always working to improve its scalability and other functions. For instance, Ethereum plans to migrate from the current Proof Of Work to a Proof of Stake mechanism, which provides better room for scalability, is quicker, and is not as power-hungry as the former.

Moreover, being the first reliable smart contracts platform, Ethereum has somewhat of a loyal following – from the developer community to the crypto market to users.

For these reasons and more, it is unlikely that Ethereum will be unseated anytime soon, whether by Cardano or any other cryptocurrency.

The Coinbase Effect

As of January 2020, Cardano is yet to be listed on Coinbase, despite the exchange signaling it was considering the addition way back in July 2018. Cardano fans are still waiting with bated breath for this to happen.

Coinbase is big, not just in market volume but also in name. So, many wonder what this would mean for the Cardano price if it were to be listed.

First, it’s important to know a coin getting listed on the exchange does not herald its bullish rally for all the time to come. Many coins have been listed, surged in price thereafter, and went on to fizzle out.

It’s likely that ADA will shoot up in price as the exchange’s user rush in to get a piece of the Cardano action at an affordable price. From then on, the coin experienced up and down swings like any other crypto, depending on the improvements its developers will continually integrate on its blockchain. 

Also, Coinbase’s massive user base means massive interaction with the coin, and hence more liquidity. More liquidity means more investors, and more investors mean more support. Support often leads to an increase in value.

Conclusion

Cardano has distinguished itself from other crypto projects by being the first to be built on peer-reviewed protocols and pure mathematics. That fact alone gives it an edge over other similar projects. Also, the people leading it – heavyweights in the crypto scene, add massive credibility to the project. Cardano fans expect only great things from the project.

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Crypto Market Analysis

ADA heading downwards

Market cap: $1,928,057,452
Total supply: 31,112,483,745
Circulating supply: 25,927,070,538
Daily volume: $44,902,483

ADA heading downwards
Cardano has had

Market cap: $1,928,057,452
Total supply: 31,112,483,745
Circulating supply: 25,927,070,538
Daily volume: $44,902,483

ADA heading downwards
Cardano has had

  • Market cap: $1,928,057,452
  • Total supply: 31,112,483,745
  • Circulating supply: 25,927,070,538
  • Daily volume: $44,902,483

ADA heading downwards

Cardano has had quite a decline, even if we take the downtrend of Cryptocurrencies into consideration. With big resistances coming at $0.079 and $0.083, it will have a hard time outperforming other Cryptocurrencies in their potential upwards move. So how do we trade ADA/USD?



Trading Cardano

To be quite frank, there is only one possible trading scenario. ADA will be underperforming or matching the upward moves of Cryptocurrencies, and outperforming them in the downwards moves (at least in the near future). We advise taking a small size short or staying out of this Cryptocurrency in general. Entry point should be a fail of breaking through the $0.079 resistance line, and there is no set goal to take profits. Stop-loss should be set either at $0.085 (less risk) or between $0.083 and $0.0845. We do NOT advise taking long entries when it comes to Cardano until it comes back over its resistances, and confirms them as clear support lines/areas. Overall Cryptocurrency bearish sentiment further adds to this thesis.

Final word

Long-short portfolios are advised to take a small-sized short position in ADA/USD. However, and other form of trading that includes this pair is too risky to open up. Therefor, being extremely careful is a must in these unstable markets. Short positions are favored in the market, and that’s why this trade is considered.

Categories
Crypto Market Analysis

Daily crypto update 04.07.2018 – Another Low Coming Before The Recovery

General Overview

Coin Capital Market Cap: $272,844,346,322

24h Vol: $15,104,000,275

BTC Dominance: 42.0%

From this morning, the cryptocurrency market cap has increased by aproximately 10 billion, the evaluation coming to 277,181,000,000$ at the higest point.

Coin Capital Market

As you can see from the global chart, that area is clearly the seller’s territory, so the evaluation retraced from those levels as selling was activated.

The market is still in green as the prices haven’t retraced more than they have increased over the 24 hour period.

News

There aren’t any significant headlines that have come out from this morning. The only one that is worth mentioning is that the cryptocurrency exchange Binance has now resumed services after it announced the suspension of all trading and withdrawals, as reported by cointelegraph.

The temporary suspension was due to an alert over “irregular” Syscoin (SYS) trades “from a number of API users.” Binance subsequently chose to suspend trading, withdrawals and other account functions, as well as to take a series of further measures in order to protect its users.

Another headline that is worth mentioning is that UK housing minister Eddie Hughes released a report into blockchain July 4, calling on the government to “show leadership” by making the technology and its benefits a priority.

The report, ‘Unlocking Blockchain,’ makes several key proposals, using state projects currently underway in Estonia as the standard authorities should follow at home.

“The state should focus its attention on using blockchain to enable social freedom, to increase efficiency, and to rebuild societal trust,” Hughes summarises.

Source: cointelegraph

Analysis

ETH/USD

From today’s low at 454$, the price of Ethereum has increased by 4.25% as it is currently sitting at 474.40$.



Looking at the hourly chart, we can see that the latest high was lower than the last, and it looks like this may be the start of a descending channel of some kind, but currently, we are seeing another attempt to break that resistance, as the green candle is on its levels.

Market sentiment 

Ethereum is in the buy zone.

Pivot points

S3 414.42 
S2 442.08 
S1 452.05 
P 469.74 
R1 479.71 
R2 497.40 
R3 525.06

EOS/USD

From today’s low at 8.64$ the price of EOS went to 9.28$ and has retraced since to 9$ which is an overall increase of 4.76%.



Looking at the hourly chart, we can see that the 9.20$ levels are where the prior top was and that area serves as strong resistance. Now that the price has failed to break that resistance once again I am expecting the price to drop to around 8.50$.

Market sentiment 

Hourly chart technicals signal a buy.

Oscillators are on neutral and moving averages signal a strong buy.

Pivot points 

S3 7.5413
S2 8.2669 
S1 8.5395 
P 8.9925 
R1 9.2651 
R2 9.7181 
R3 10.4437

XMR/USD

From today’s low at 136$, the price of Monero increased by 3.44% and is currently 141.70$.



Looking at the hourly chart we can see that the price is currently interacting with the median line of the pitchfork, and I am expecting it to go further down to create a higher low.

Market sentiment 

Monero is in the buy zone.

Pivot points

S3 123.033
S2 131.213 
S1 134.787 
P 139.393 
R1 142.967 
R2 147.573 
R3 155.753

ADA/USD

From today’s opening at 0.147$, the price of Cardano has increased by 5.13% coming to 0.1558$.



As you can see, the price went higher to the resistance at 0.16$ and has retraced since to the mid-range support line. I am expecting the price to break the support and go further down to the next support levels at 0.146$.

Market sentiment 

Cardano is in the buy zone.

Moving averages signal a strong buy.

Pivot points

S3 0.078
S2 0.104
S1 0.121
P 0.13
R1 0.147
R2 0.156
R3 0.186

Conclusion

Coin Capital Market: After the prices have been increasing rapidly in the last 24 hours, we are seeing interaction with first significant resistance levels, and this retracement as the result of that. I am expecting that tomorrow will be another green day.

Categories
Crypto Market Analysis

Weekly Crypto Update 07.02.2018 – The Recovery Has Started

General Overview

Crypto Coin Market Cap: $270,492,089,135

24h Vol: $16,547,075,818

BTC Dominance: 42.3%

Last Monday on 25th of June, cryptocurrency market capitalisation was

General Overview

Crypto Coin Market Cap: $270,492,089,135

24h Vol: $16,547,075,818

BTC Dominance: 42.3%

Last Monday on 25th of June, cryptocurrency market capitalisation was

General Overview

Crypto Coin Market Cap: $270,492,089,135

24h Vol: $16,547,075,818

BTC Dominance: 42.3%

Last Monday on 25th of June, cryptocurrency market capitalisation was 258,924,000,000$ at it’s highest point. Since then, the market cap fell all the way to 232,613,000,000$ on Friday 29. On Saturday the evaluation rose from those levels back to the levels of Monday’s open, and now we are seeing a breakout as the evaluation exceeds Monday’s around $258B. Because the global chart is lagging behind a bit, I have drawn with a brush were the chart should be at the moment.

Crypto Coin Market Cap Chart

The market is in the green at the moment. Biggest gainers so far among top 100 coins are: Neo 16%, 0x 18.56%, Verge 18.3%, Wanchain 15%. The average percentage increase is around 6% but there are a lot of coins that have gained 10% or more in the lasts 24 hours, which is a sign of recovery.

News

There are a number of significant news items that came out in the last 7 days. Out of those that could impact the market I point out the following:

Facebook will no longer ban crypto ads, but ICOs are still on the blacklist and only verified accounts can post them, according to their announcement. This headline is good, as Facebook ads will help expose the market, however, if they are in control of the type of projects they are going to allow or particular cryptocurrencies, Facebook will have control of the content displayed to the users, and they could, in fact, help manipulate that market, or create a general impression that is aligned with their agenda around a particular coin or project. For example, I don’t believe that they are going to allow promoting Steemit which is a blockchain based social media rival that pays out their users with their native coin. But we are yet to see what happens, as the pressure is applied on to major players but the technological advancements of the blockchain.

Other significant headlines that could impact the market as they bring more exposure and open up the space for new participants are that Binance launches a crypto-fiat exchange in Uganda– Binance Uganda, as reported by cointelegraph. This will bring more cryptocurrency exposure to the retail investors.

On the other hand Blockchain.com – the best-known crypto wallet and blockchain explorer data service has introduced their institutional platform, Blockchain Principle Strategies (BPS). BPS will offer over-the-counter services managed by experts from Goldman Sachs, JP Morgan, and UBS as part of the platform.

Analysis

BTC/USD

From last Monday, the price of Bitcoin has increased by 5.13% coming from 6282$ to the low at 5800$ at its lowest point back to 6443$ and now above the level of last Monday’s open at 6618$.



Looking at the hourly chart, we can see that the price has found support on the unconfirmed triangle support, and broken the downtrends resistance line as it’s heading in an upward trajectory. The first target I am looking at is an unconfirmed baseline support 2 (purple dotted line) at 7054$. I am expecting the first significant resistance from there to 7320$ area, and if the price gets passed through that resistance I am expecting the price to go to around 8000$.

Market sentiment

Daily chart technicals signal a sell.

Oscillators are on neutral and moving averages signal a sell.

Pivot points 

S3 4649.7 
S2 5440.2 
S1 5915.8 
P 6230.7
R1 6706.3 
R2 7021.2
R3 7811.7

ETH/USD

From last Monday’s opening at 451$, the price of Ethereum has increased by 5.34% as its currently sitting around 475$.



On the daily chart, we can see that the correction has ended and it was a WXY correction just like I pointed out it would most likely be in the charting section last week. I have pointed out that this correction might make another low and be complete as a WXYXZ sideways correction but that from those levels around 400$ the price is going up soon. Currently, the price has broken the downtrends resistance line and is heading upward steeply after consolidating in a descending channel.

Market sentiment 

Ethereum is in the sell zone, as indicated by daily chart technicals.

Oscillators are on neutral, and moving averages signal a strong sell.

Pivot points

S3 303.76 
S2 374.27 
S1 414.06 
P 444.78 
R1 484.57 
R2 515.29 
R3 585.80

LTC/USD

In the last 7 days, the price of Litecoin has risen by 5.42% from the opening on last Monday at 81.5$ to 85.8$ where it is currently sitting.



The price of Litecoin has found support at around the 72$ level, which is the level from where the price went on to create the all-time high.  Today the price has broken the downtrends resistance line and is in an upward trajectory. Like in the case of Bitcoin, I am expecting this upward movement to be the final wave Z from the WXYXZ correction from which the price is heading lower afterwards. Some of the significant level to look out for in the following week is from 111$ to 124$ which was considers as a support area, and probably now serves as strong resistance, so I will be closely monitoring what happens at those levels because I am expecting the price to go higher than 124$.

Market sentiment

Litecoin is in the sell zone as indicated by daily chart technicals.

Oscillators are on neutral and moving averages signal a strong sell.

Pivot points

S3 55.377 
S2 67.393 
S1 74.299 
P 79.409 
R1 86.315
R2 91.425 
R3 103.441

NEO/USD

The price of Neo has increased by 15.38% coming from 31.6$ last Monday to 36.42$ where it is currently.



Looking at the Neo daily chart we can spot the similarities between the current candle formation and the last time the price of Neo has recovered from its lowest. As I have measured with the Fibonacci retracement tool, last time the price recovered to the 0.5 Fibonacci level, and I have projected the same recovery this time which fits perfectly with the potential interaction with the uptrend baseline support that was broken. In price terms, I am expecting the price of Neo to rise to around 56.89$.

Market sentiment

Neo is in the sell zone as the daily chart technicals indicate.

Pivot points

S3 16.25 
S2 23.49 
S1 27.20 
P 30.73 
R1 34.44 
R2 37.97 
R3 45.21

DASH/USD

From last Monday’s open at 238.9$, the price of Dash has increased by 5.46% as its currently sitting at 250.8$.



Looking at the daily chart we can see that like in the case of other cryptos that are covered in this report, the price has broken the downtrends resistance line and is heading upward. I have labelled this correction as WXYXZ and as you can see it has ended. I have projected that the price is mostly going to recover to the 384$ as that is the half of the range from the last retracement, much like it did two prior times.

Market sentiment

Dash is in the sell zone, as indicated by daily chart technicals.

Pivot points

S3 155.17
S2 195.52
S1 217.44
P 235.88
R1 257.79
R2 276.23
R3 316.58

ADA/USD

From last Monday’s open at 0.135$, the price of Cardano has increased by 11.42% as its sitting around 0.151$.



As you can see from the daily chart, the 5 wave move down has ended, and the price is now starting to recover in an upward movement after it broke the downtrends resistance. I am expecting the price to go up to 0.23$ where the first major resistance line is and corresponds with the half of the range.

Market sentiment

Cardano is in the sell zone.

Pivot points

S3 0.076333 
S2 0.103199 
S1 0.120628 
P 0.130065 
R1 0.147494 
R2 0.156931 
R3 0.183797

Conclusion

Crypto Coin Market Cap: After the prices have tested the old lows and dipped beyond them a bit we are seeing a trend reversal taking place. As the chart of the cryptocurrencies analysed in this report point out, this is going to be a short-term recovery, before another drop.

This was my projection from 02.06.2018 in which I have drawn the recent low the recovery I am expecting before another potentially final drop to around 178B level.
Crypto Coin Market Cap

This recovery might serve as a great shorting opportunity, but as there is so much manipulation going on, things can get pretty uncertain, so be careful.

Categories
Crypto Market Analysis

Cardano Reversal In Spotlights

 Cardano (ADA)

Market Cap: $5.34B

Circulating Supply: 25.93B ADA

Max Supply: 45B ADA

Volume (24h) $230.28M

Technical Analysis

ADA/USD rallied in yesterday’s trading session and has invalidated the breakdown below the lower median line (LML) of the major ascending pitchfork. The crypto market has bounced back in yesterday’s session and is signalling that the sellers are too exhausted in the short term. However, the ADA/USD could still come back a little to test and retest the support levels before it climbs towards the next upside targets.


 

The corrective phase was natural and it was expected after the failure to stabilise above the median line (ML) of the ascending pitchfork. Personally, I would like to see a consolidation on all major cryptocurrencies before they will really start a larger upside movement. We need a confirmation before we’ll go long again.

Technically, the rate is expected to increase after the false breakdown below the LML of the ascending pitchfork and below the first warning line (wl1) of the minor descending pitchfork. It has escaped from the minor Falling Wedge signalling a reversal in the short term.

Another leg higher will be invalidated only by a valid breakdown below the lower median line (LML). It remains to be seen if it will increase from now or after a minor drop and after a retest of the LML, the warning line (wl1).

Conclusion

You can go long on Cardano (ADA) with a first upside target at the 50% Fibonacci line of the ascending pitchfork. The second target will be at the median line (ML) and the Stop Loss could be placed below the 0.170625 previous low or below the 0.166490 static support. This setup could have a Reward-to-Risk around 3.50.