Not long ago, CARDANO ADA disclosed that its much-awaited Daedalus on Linux was ready for public beta testing. The information was made available through the CARDANO community forum where it continues to gain feedback to ensure that the network will cater for all the Linux distributions.

What’s more, the network will embrace customization to certain levels, a step aimed at improving user experience.

For users who have been longing for a Linux wallet for months, they can now store their ADA securely and in peace. Besides, the beta testing is friendly to users who would like to operate a script on a terminal.

A big shoutout to the IOHK team, their statement also provides the instructions to follow when running the beta version. This means that those who were concerned about bug fixes or installation are now sorted. The community will keep the wallet recovery phrase safe, test the beta version of the software, and provide feedback.

“We want to hear about your experience, both good and otherwise. There are two recommended ways to submit feedback directly to us. Either way, please include the phrase ‘Linux Beta’ on the submission form,” a section of their statement read.

What is CARDANO ADA?

cardano

CARDANO is an open-source, decentralized cryptocurrency project, which operates on the blockchain. CARDANO ADA aims at bringing forward the latest features through the smart contracts. The CARDANO blockchain is a project of a scientific research and the project remains scientifically driven since its inception.

The CARDANO project utilizes ADA coin, whose price has achieved major milestones to hit the top 10 list of cryptocurrencies by market capitalization. At the time of writing, ADA is in the seventh rank with a market cap of more than $7.5 billion and a circulating supply of close to 26 billion ADA.

Why Does CARDANO ADA Deserve Attention?

In a bearish market like what the crypto market witnessed in the first quarter of the year, there are countless digital currencies to buy. However, of all the coins available for purchase, CARDANO ADA deserves the most attention.

Baptized the Ethereum of Japan, the ADA coin is one of the most undervalued coins in the top 10 list. So why has CARDANO ADA become so popular just suddenly? To begin with, CARDANO ADA digital currency is promising, seeking to improve the problems associated with Ethereum. Besides, what makes it stand out is the level of technical competency in its blockchain.

Currently, even the major cryptocurrencies cannot deal with the level of transactions done through Visa and MasterCard. However, the ADA coin is inching closer to handling thousands of transactions per second. This is a big challenge for both Bitcoin and Ethereum, which cannot even handle a fraction while CARDANO can.

A Relatively New Cryptocurrency

Cardano was officially launched in September 2017 after a period of more than two years under construction. CARDANO ADA seeks to be the third generation cryptocurrency. The ADA coin is the creation of Charles Hoskinson, one of the co-founders of Ethereum.

Cardano embraces a blockchain protocol that handles digital currency transactions and a computing layer designed specifically for smart contracts. It aims at improving the first two generations of cryptocurrencies. The current price of ADA coin is $0.290 as of this writing.

The crypto market, just like any other market, is a zero-sum game. Therefore, traders need to understand the game and be able to interpret the price action in order to make a profit.

Mastering the CARDANO ADA Price Action

Cardano Price

Cardano trading utilizes the 200-day moving average together with volume to predict where the ADA price would be in future.

Crypto traders know that the 200-day moving average is one of the most powerful moving averages out there, as Paul Tudor Jones, a successful Hedge Fund manager, supports:

“My metric for everything I look at is the 200-day moving average of closing prices. I have seen many things go to zero, stocks and commodities. The whole trick in investing is “How do I keep from losing everything?”

“If you use the 200-day moving average rule, then you get out, you play defense, and you get out,” Jones adds.

How does this rule apply to Cardano ADA? It simply means that at the time Cardano price trades above the 200-day moving average, it generates a bullish trend. Conversely, when Cardano trades below the 200 DMA, it produces a bearish trend.

Since most traders love this rule, the 200-day moving average is like a self-fulfilling prophesy that creates unique trading opportunities. In addition, the volume indicator provides an additional layer of confirmation. Traders can use the same to assess the health of the Cardano trend.

By combining the Cardano buying and selling with the price action, traders can get a powerful technical indicator to help them make a profit in the crypto market. All the same, it’s important to remember that the 200 DMA can only work together with price action.

If Cardano price trades below the 200-day moving average and you notice an increase in volume that supports a bearish trend, then that is a sell signal. Conversely, if the ADA price trades above the 200-day moving average, then it produces a buy signal.

CARDANO ADA Trading Strategy

Traders should follow a systematic guide to trade Cardano at any period. Usually, analysts and trading experts suggest taking a paper and pen to jot down the rules of Cardano ADA trading strategy.

For example, you can observe the buy price.

Step #1: Cardano ADA price should Trade above the 200 DMA

This is the first requirement that ADA coin requires. When the coin price is trading above the 200-day moving average, you have a full premise for a bullish market.

The more the price stays above the 200-day moving average, the stronger the bullish trend. The strength of the trend also depends on the distance between the ADA price and the 200 DMA. From there, you should shift your attention and interpret the data that comes from the Volume indicator.

Step #2: Twice as much volume as the previous volume bar should come in

You should check for instances when the volume bars are above the average volume. Observe the red moving average. However, that is not all. The buying volume should be double the previous volume bars. There are also instances in which the volume is both above the 200 DMA and is twice the previous volume bars. When that happens, you have two possible buying ranks.

It is important to wait for trading instances in which the buying volume increases significantly. It is an indication of institutional buying, which has the power to push the ADA coin price. Once the situation satisfies the two conditions, you have the triggers for your entry strategy.

Step #3: Observe volume increase and buy at the opening of the next candle

The right time to buy Cardano ADA is quite spontaneous if you follow this systematic guide. If you see institutional presence, you should be sure you’re not left out. Therefore, after a volume increase, you should buy at the start of the next candle, which comes before the big volume candle.

In most cases, you will buy after the first bullish candle that heralds a new trend. It is advisable to buy when price increases, as this can be quite profitable in the long-term. The next thing you need is where to place your protective stop loss. This takes you to the next step.

Step #4: Place your protective stop loss below the 200-day moving average

Your protective slop loss should be below the 200-day moving average. A market with a strong bullish trend should not drop below the 200 DMA. If you hide your stop loss below this mark, you minimize the risk of losing greatly.

Finally, you should define a take profit level for buying the ADA coin. This leads you to the last step.

Step #5: Take profit after breaking and closing below the 200-day moving average

The 200-day moving average should serve as an important indicator for your exit strategy. When you exit below the 200 DMA, it’s the first indicator that the trend is almost changing tide. At that point, make sure you take profits.

Final Thoughts

These steps provide an example of a BUY trade using the Cardano trading strategy. You can use the same steps for a SELL trade, but in the opposite manner. The Cardano ADA coin is set to be a governance model, in which the code becomes law and no one has absolute power over the digital asset.

Let us know what your thoughts on this article. Join the conversation over at Telegram (https://t.me/coinstaker)

Images Courtesy of CoinStaker Library and Trading Strategies.com

Author info

Tony is a writer for the crypto space. He presents cryptocurrency and blockchain topics to the public in a way that he only can. While carefully researched, this article should not be taken as an express investment guide. Do your own research and consult a financial advisor before you invest in cryptocurrency.

Share This