Cardano is considered a third generation cryptocurrency due to its potential use cases. With smart contracts coming soon, ADA investors seem excited that their investments are turning out to be profitable. However, could the upcoming infrastructure law cut Cardano’s time? And how do investors actually feel about these changes?
The bill and the next critical level for Cardano
As most of the crypto space has heard, the new infrastructure bill aims to change the tax rules for cryptocurrencies. According to the bill and another new regulation to tighten it, “brokers” must report their profits. This is in addition to reporting transactions worth more than $ 10,000. However, with the bill facing a lot of backlash, amid all this chaos, where is Cardano going from here?
Looking at the important levels that analyst Dan Gambardello highlighted in his most recent video on YouTube, it looks like there is a possibility of an uptrend. On the daily chart, Cardano is finally testing the bull market doors of the Fibonacci tool as the candle closed above the 1.618 level. This is usually a strong sign of an uptrend. In addition, this movement is similar to the Bull Run behavior of 2019.
However, as the market enters a correction phase, this uptrend could be interrupted. In this case, ADA could find support at USD 1.2 as USD 1.5 becomes resistance. In addition, the altcoin collapsed from the descending triangle of the BTC pair and landed on the support. Swing lows place this support close to 3250 sats and if ADA tests this correctly, an upward move appears unlikely.
Do investors agree?
In terms of buying and selling, bears appear to be dominating the market right now. In addition, the most recently observed volatility has decreased by almost 100% in the past 2 months. In June volatility was 150% when we witnessed a little bear run. While this is a good sign, general market signals still appear negative.
After all, new addresses and active addresses have dropped significantly, even reaching 0 on August 1st. Given these data, it becomes clear where ADA’s journey could be headed.