With the best of intentions, ADA investors couldn’t complain about the Cardano price performance this year. The Cardano course experienced an impressive price rally over 136 days from mid-March to the end of July, in which the ADA price rose by an incredible 545%. This enormous appreciation of Cardano’s native cryptocurrency is not least due to the positive developments in the project.
The founder of Cardano Hoskinson lit a veritable firework of positive news about the development of his project. After the announcement of some relevant partnerships earlier this year and a successful implementation of the new consensus mechanism , Hydra Sharding was announced. This was followed by a first clear Cardano price increase through the announcement of the Shelley Mainnet .
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With Shelley , an important milestone in the project was reached, which was not only intended to fundamentally change the way the network worked, but also had great potential from an investor’s point of view.
Because with Shelley, investors can stake ADA and thus not only actively participate in the network, but also receive an attractive dividend for staking
The fact that this upgrade was well received by investors was evident not only from the seemingly unending positive development of the Cardano course, but also from the willingness of users to participate in the network and staking. Over 200 staking pools have already registered on the test network for Shelley and have been put into operation. After a total of 5 years of development at Cardano, the long-awaited Shelley Mainnet went live on July 30th, 2020 .
This date also marked the turning point in the Cardano price, because it marks exactly the point in time around which the price rally came to an end and changed direction. True to the motto Buy the Rumor, Sell the News . Cardano price recently traded 50% below its July high and is likely to continue. But why this dry spell could soon come to an end, let’s take a closer look at the ADA chart.
As mentioned above, the ADA / USDT chart shows a clear price correction for the Cardano price, which is not too surprising given the previous price rally. Still, a 50% price correction is not without, especially for those investors who jumped on the bandwagon near the annual high. Still, there is reason to believe that this correction could end soon.
The chart clearly shows that the Cardano price was last caught by the 200-day MA line (shown in red ) and has since traded between this and the 50-MA line (shown in green ). There are 2 scenarios that are possible in terms of future price performance. In the following we want to go into more detail on both variants.