Cardano Stablecoin Unveiling Is Just Around The Corner – Will This Boost ADA Price?

Christian Encila

Last Updated: November 23, 2022 12:31 pm

3 mins read

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You can call it Djed, but the game is stablecoin. According to reports, Cardano’s stablecoin, Djed, will be released on the Cardano mainnet in the first month of 2023.

They call this type of stablecoin “algorithmic,” which means that the asset’s stability is guaranteed by some very advanced, but (they say) “ultimately important,” mathematics.

Cardano collaborated with COTI on this mammoth project.

in light of Djed’s declaration, let us quickly review ADA’s persformance of late:

Price activity as of late indicates further pain
If Crunchzone rises above $0.3160, the bears will gain even greater power
That’s a portent of fantastic things to come for Cardano

A stablecoin might be a fantastic entry point for newcomers to the expanding Cardano ecosystem. When will ADA respond to this?

It’s official! $Djed will launch on the Cardano Mainnet in January 2023! 🚀$Coti $Ada #Djed pic.twitter.com/cu8ryW6Lo7

— Djed Stablecoin (@DjedStablecoin) November 21, 2022

Adapting To Optimism

According to CoinGecko, the price of ADA rose by 4.7% after the news. Likewise, TVL has risen from yesterday’s level of $64.9 million to today’s $68.52 million.

Investors and dealers may be stocking up on ADA in preparation for a price surge.

 Image: TradingView

With the announcement of the stablecoin, however, not everything is sunshine and rainbows. This can be summed up in a response to a commenter on the announcement’s Twitter post:

How is this different from luna’s UST

— Moche (@mocheswap) November 21, 2022

This is reflected in the price fluctuations of ADA. The regressive tendency indicates that holders will endure additional suffering. At the present price of $0.3160, a decline to $0.2985 is possible.

However, the Money flow index appears to contradict a value of 60, indicating a possible reversal.

Correlation also contradicts the regression pattern, since ADA’s significant correlation (0.94) with a rising BTC will undoubtedly be beneficial.

Unquestionably Still Bearish

However, RSI values remain neutral. With the price action establishing a double bottom, however, a decline below $0.2985 remains probable.

An coming Bollinger band crunch zone will also threaten an additional bullish recovery.

The announcement is welcomed with enthusiasm and anticipation by the community. However, the cryptospace’s past experiences and the current bear market provide a formidable obstacle for investors and traders.

With bearishness evident on the daily and shorter timelines, this price increase could be a precursor to more declines. However, this indicates that the community interpreted the announcement as bullish rather than pessimistic.

ADA total market cap at $10.8 billion on the daily chart | Featured image from CoinCu News, Chart: TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.