Cardano (ADA) price rebounds after support break

Cardano (ADA) price is trading over 6% higher this week as the buyers attempt to stage a rebound after breaking below the multi-month supporting line. 

Fundamental analysis: Developing a secure framework is key

Charles Hoskinson, the founder of Cardano, said the ultimate goal of his blockchain project is to develop a secure framework that offers consumers comprehensive economic identities. 

Hoskinson views Cardano as a ‘financial operating system’ that can embrace new features and services and scale perfectly to accounts regardless of the amount of inflow of new users. 

“The general idea is that the system should be an end-to-end stack for economic identity. So what that means is that if some person in Senegal, or some person in Rwanda, or wherever, enters the system, they should be able to have someplace to place their data and their identity, to build a reputation. 

“They should have some way of getting credit. They should have some way of interfacing with a currency that’s reasonably stable, that they can send to anybody in the world. They should have the ability to interface with exchanges. If they have a business, they should have the ability to securitize that business, so they have banking services, insurance services, credit services, remittance services,” he explained in an interview with Slot Leader. 

IOHK, Cardano’s parent company, said it is creating a $250,000 public fund to stimulate developers to create decentralized applications for Cardano. The fund is the part of the upcoming phase of the blockchain, Voltaire, which is expected to bring voting and treasury systems. 

Through this system, the Cardano community will take part in making decisions on software updates, funding and technical developments. Hoskinson says Voltaire will also bring another aspect to the project’s vision of a fully-fledged economic identity. He refers to the project as a ‘one-stop-shop’ which will keep bringing more and more benefits to its customers and their economic lives.  

Technical analysis: Rebound taking place

ADA/USD is trading over 6% higher this week on the back of two strong daily performances on Thursday and Friday. The buyers are working to repair the damage made last week when the price action broke below the 6-month supporting trend line at $0.0980.

ADA/USD price weekly chart (TradingView)

Hence, this area is now a magnet for the price movements. The buyers will attempt to get back above this line while the sellers will try to utilize the bearish momentum and look to test important support at $0.0730, which will also offer an opportunity to buy ADA.

Summary

Cardano price broke below the key supporting trend line last week as the buyers now attempt to get back higher. Separately, Hoskinson said his project aims to create a secure framework that will provide its users with comprehensive and irrevocable economic identities.

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