The bill and the next critical level for Cardano
As most of the crypto space has heard, the new infrastructure bill aims to amend the cryptocurrency tax rules. According to the bill and another recent provision to make it stricter, “brokers” will be required to report their gains. This is in addition to reporting any transactions worth more than $10k. However, with the bill facing a ton of backlash, the question is, in the midst of all this chaos, where will Cardano go from here?
Looking at the important levels highlighted by analyst Dan Gambardello, in his recent video on YouTube, it looks like there is a possibility of an uptrend. On the daily chart, Cardano is finally testing the bull market doors of the Fibonacci tool as the candlestick closed above the 1.618 level. This is usually a strong sign of uptrend. Furthermore, this movement is similar to the 2019 bull run behavior.
However, since the market is entering a phase of correction, this uptrend could be cut short. In that case, ADA could find support around $1.2 as $1.5 becomes resistance. Also, the altcoin broke down from the descending triangle on the BTC pair and landed on support. Swing lows place this support close to 3250 sats and moving forward until ADA tests this properly, an upward movement seems unlikely.
Do investors agree?
In terms of buys and sell-offs, at the moment, bears seem to be dominating the market. Additionally, volatility witnessed recently has come down by almost 100% in the last 2 months. Back in June, volatility was at 150% when we witnessed a minor bear run. While this is a good sign, broader market cues still appear negative.
Lastly, new addresses and active addresses have come down significantly, even reaching 0 on August 1. Considering this data, it becomes clear where ADA could be headed.
