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You can call it Djed, but the game is a 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 performance 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?
— 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.
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.
A 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 crypto space’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