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After much delay, the Cardano (ADA) incentivized testnet finally rolls out today. At 12 noon UTC, a snapshot of balances in Daedalus and Yoroi wallets will kick off the staking process. And ADA holders will have the opportunity to earn rewards by staking their tokens at a later date. But more than that, developers at IOHK say that this marks a momentous point in decentralizing the Cardano network.

Cardano Shelley Era

The Shelley phase of development is Cardano’s first step towards decentralization. This will be achieved by increasing the delegation of community-run nodes and incentivizing network participation through staking.

Picture of poet Percy Bysshe Shelley used to signify Shelley phase of Cardano roadmap

Developers expect this setup to promote long term honest participation on the Cardano network. Moreover, by the end of this phase, developers predict that Cardano will be significantly more decentralized than any other blockchain network.

Furthermore, the Cardano community is buzzing with excitement over the real rewards on offer. Developers believe this is the only way to accurately assess their theories on incentivization. They said:

“The ada rewards earned for delegating a stake or running a stake pool are real and, once the testnet is complete, spendable. We’re using real rewards to gauge real responses, and to assess how the mechanism works in a real-world setting.”

Stages of Testnet Participation

All the same, in the clamor to be a part of it, many ADA holders are confused over the process. As of today, anyone wanting to participate should have their ADA in a Daedalus or Yoroi wallet. And not on an exchange or hardware wallet. But this first snapshot is a dry run, and does not affect your testnet participation.

Within a few days from now, a testnet wallet will be available for download. After downloading, restore your account to it by entering your 12-word recovery key.

At this point verify that the account restoration on the testnet wallet has worked and that your test balance is correct.

If there are problems, now is the time to get in touch with Cardano support. Otherwise, simply wait for the second snapshot.

After the second snapshot has been taken, you are free to move your tokens wherever you wish. But your test tokens will stay in the test wallet.

Remember, participation in today’s balance snapshot is optional. And will not affect your ability to participate in the incentivized testnet.

ADA Price

Since the start of the year, ADA has followed a similar pattern to Bitcoin. Having spiked around April, and then again during the summer. However, ADA’s summer decline occurred from July onwards, versus Bitcoin who managed to stave off a price drop until late August.

Today’s snapshot did not significantly affect the price as Cardano is up just under 2% at $0.044. But this forms the tail end of an upward trend since late October.

Some have speculated that low ADA supply on the exchanges, as holdings get transferred to Daedalus and Yoroi wallets in preparation for today’s snapshot, maybe the reason for this trend.

Volume swing has ranged from around $32 million to as high as $145 million since the start of October, settling around the $60 – 70 million level for the past week. As such, the start of this testnet has not affected Cardano’s demand significantly.

The Future For Cardano

All the same, Cardano’s fundamentals remain strong. And the scientific research, that underpins their operating philosophy, if all goes to plan, will develop a scalable high-security PoS network for the long term.

However, that same methodical approach is also Cardano’s weakness. And many in the community have grown tired over roadmap delays. And it should be noted that Cardano has a further three roadmap phases in Gogen, Basho, and Voltaire until completion.

The coming weeks, as testnet feedback is released, will mark a significant period in Cardano’s development. And the community will finally learn whether delays to Shelley were justified.

Having said that, there’s no denying that Cardano’s goal of being the world’s financial backbone is an ambitious goal, if ever there was one. But Cardano advocates acknowledge that these things take time. And so remain unphased by the slow burn that is Cardano’s development.


Samuel Wan , 2019-11-12 15:14:39

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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