Cardano price pares back gains as Shelley momentum fades

  • Cardano exploded more than 65% higher in the first week of July after the newest Shelley upgrade
  • The buyers forced the price action higher to print the highest levels since 2018
  • The next target upside is $0.1610

Cardano (ADA) prices have pared back a portion of the most recent gains as the price action rotated lower yesterday to end the bullish run. In the meantime, the Cardano Foundation is fighting scams that are attempting to defraud crypto investors.

Fundamental analysis: Persistent problems with scams

The Cardano Foundation (CF) issued a warning to the public claiming that a suspicious organization is attempting to defraud investors by claiming it is connected with the foundation.

Yesterday, the CF said that an organization claiming to be from the Caribbean crypto exchange “BTCNEXT” is trying to lure investors into making deposits, telling them they’re in contact with the foundation’s core members.

It remains uncertain whether the organization is actually connected to the exchange at all.

“Neither the Cardano Foundation nor any of its ecosystem partners are in any way associated with BTCNEXT, and they are also not our partners of any sort.”

“Thus, we strongly urge you not to send your ADA to any third-party entities which claim to have partnerships with Cardano or officials from the entities within the Cardano ecosystem. We will never ask you to send your funds (assets) to us,” the Cardano Foundation added.

The CF told the public to watch out for “any suspicious claims and conduct thorough due diligence.” In the warning, the CF asked the community not to conduct any transactions with third parties that claim they’re connected with the foundation.

“We will never ask you to send your funds (assets) to us.”

The Cardano Foundation dealt with similar issues in the past as well. Since the foundation made success in the crypto market, various fraudsters have made a profit on that success and abused the foundation’s name to lure investors into fraudulent schemes.

Technical analysis: ADA price rotates lower

ADA price has been trading in the red for the second consecutive day. At the beginning of the week, Cardano price surged higher on the back of the launch of the newest upgrade, Shelley.

Cardano (ADA) price daily chart (TradingView)

Overall, ADA price soared over 65% in July to hit the highest levels since 2018. The buyers pushed the price higher to test the 127.2% Fibonacci extension at $0.1350. Although the price shot much higher than this level, it rotated lower to trade around the $0.1150.

As a consequence, Cardano price trades 16% lower compared to Wednesday’s high. For the buyers, a weekly close above the 2019 high at $0.1065 is needed to create a solid base. At a later stage, investors looking to buy ADA can try to push the price action towards the next resistance level at $0.1610.

Summary

Cardano (ADA) price has corrected around 15% from the highs after exploding higher in the first week of July. The buyers are hoping to close the week above the 2019 high at $0.1065 and push above $0.1600.

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