What you'll learn 👉
Total market analysis
The whole market is in a slump since the beginning of the week with a huge drift yesterday where it lost around 15% of its value. The nosedive has leveled off a bit today and bitcoin is around the same level as yesterday. The market cap is currently at $222 billion with bitcoin’s dominance at 68.3%.
You can see that the chart is signalling a possible support zone at around $206 bilion, a Fib382 level as shown below:
ADA is one of the better performing altcoins today as it gained 6% on its yesterday’s price. It is of course still deep in minus when we zoom out and look at the larger timeframes.
As for the short term movements, ADA could extend this mini run to the next couple of days, on a tailwind from good fundamentals (Shelley testnet about to be launched, more on that below). ADA is hovering around the confluence point of MA50 and EMA20 and a rebound from here could see Cardano climbing back up to the 585 sats zone (Fib236).
Shelley testnet about to go live
One of the most anticipated upgrades on the platform named Shelley is near – this is the second phase of Cardano roadmap that will make its blockchain actually decentralized. ADA is currently in Byron, the bootstrap phase, where they are making improvements and debugging the code.
Shelley consists of 3 main functions:
- Incentives: Provides stakeholders with monetary incentives to ensure that the system runs smoothly
- Delegation: Allows stakeholders to delegate their right and obligation to sign blocks to a third party
- Networking: Provides network infrastructure to support decentralization
After implementing Shelley phase, ADA is set out to introduce the Cardano Improvement Proposals, or CIPs with a built voting system, details of which will be released soon. Initially, IOHK will make all CIPs, there will, however, be an increasingly better mechanism for gaining consent for them.
Part of the ongoing projects is scientific research that has made possible a gradual shift from the lab to coding. This has facilitated the revision of Ouroboros and has also brought together game theorists as well as programming experts to try and identify new applications for the Cardano ADA network.
It means that the nodes will now connect to each other — essentially making the network operating as a real blockchain.
Staking will come later this year with the incentive phase, once the networking phase is successful.
For reference the phases before mainnet are:
- Ledger 93%
- Network 60% [WE ARE HERE]
- Incentive 25%
- Stabilitisation 15%
- Security audit 0%
- Perf improvement 1%
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com