Cardano (ADA) extended the losing streak on Wednesday dropping as much as 4% ignoring the bullish feature released by the parent company, Input Output Global Inc (IOG). IOG announced the launch of the open-source toolset, Marlowe, to allow users to create smart contracts and dApps on the Cardano blockchain.
In a typical case of selling the news, Cardano price ignored the development taking a hit as FOMC minutes indicated a likely “mild” recession in 2023 for the US economy.
At the moment, ADA is recovering to recoup yesterday’s losses as the investors react to the IOG feature, albeit late.
Cardano price reacts to new feature by parent company
Cardano price is down almost 0.5% over the last 24 hours to trade at $0.291. This follows a two-day downtrend that threatened to invalidate the smart contracts token’s overall bullish outlook as ADA coils up in an asymmetrical triangle.
The bearish trend witnessed over the past couple of days was unprecedented given that Input Output Global (IOG), the company behind the Cardabo blockchain, announced the launch of a new toolkit, Malowe, which users of the Cardano blockchain can use to build applications.
According to IOG, Malowe provides a seamless way for the Cardano community members to “create smart contracts and dApps with no prior programming knowledge or coding expertise.”
IOG launches Marlowe toolkit to allow anyone to build blockchain apps on Cardanohttps://t.co/EsdzXOSkhR
— Cardano Feed ($ADA) (@CardanoFeed) July 5, 2023
An excerpt from the announcement read:
“Marlowe has been designed to introduce greater efficiency in the smart contract and dApp design and rollout process. It features reusable and customizable templates, a built-in simulator to test contracts before deployment, easy setup and example applications, and powerful APIs.”
The announcement revealed that IOG has integrated TxPipe, a platform owned by cloud-based Demeter Run, coming in to increase the toolset’s functionality. TxPipe will particularly provide access to Marlowe’s runtime, without users setting up or maintaining their own infrastructure.
With this feature, users on the Cardano network can now access the full capability of the blockchain’s technology.
At the time of writing, Cardano is trading within the confines of an asymmetrical triangle. This points to a 13% move in either direction.
The Relative Strength Index (RSI) was positioned at 48 close to the neural zone. This suggested that the buying and selling pressure were balancing out.
ADA/USD Daily Chart
Therefore, if ADA price move to favor the bulls, it should produce a daily candlestick close above the triangle at $0.30, confirming a bullish breakout. If this happens, Cardano will rise first toward the 50-day Simple Moving Average (SMA) at $0.317, before reaching the bullish target of the goverging chart pattern at $0.330. This would represent a 13.67% uptick from the current price.
On the other hand, ADA could favor the bears if it turns away from the current price to produce a daily candlestick close below the triangle’s support line at $0.280. This could trigger massive sell orders that could see the token drop first toward the $0.260 major support level, before reaching the bearish target of the prevailing technical pattern at $0.250. This would represent a 13.69% drop from the current price.
