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Bitcoin Level As Cardano Shines and Compound Continues Correction

July 4, 2020 at 13:32 by Matt Jackson

After finishing June in the red, Bitcoin prices have continued to trade between $9,050 and $9,150. Prices are down 0.4% in the past 24 hours, although the world’s largest cryptocurrency remains more than 25% up on a year to date basis. Bitcoin has failed to close a monthly candle above $10,000 since July 2019. Traders will be hoping that the digital gold can take and hold above the psychological resistance level this month. Bitcoin’s 24 hour performance has been largely mirrored by major coins, with the notable exceptions of EOS, which has gained nearly 2% in the past 24 hours, and Cardano, which has continued its excellent recent run and added another 4% to its price.

All eyes have been on the newly launched COMP coin since its launch on June 17. The decentralized finance (defi) coin rose from a starting position of $113 to peak at $340, just four days later. However, since that promising start, the coin has corrected down, falling to $210 on June 24 and has continued to decline. In the past 24 hours, its price has dropped 7% to $166.73 but it still remains the largest defi coin on the market, by capitalization. Early investors are still in considerable profit over a short period of time, but it is unclear whether the new token will rise or fall from its current position.

With uncertainty over Compound’s next direction, eyes are turning to Cardano. Cardano is a cryptocurrency in a similar vein as Bitcoin, except that it promises greater security and privacy. At the start of this week, Cardano underwent its biggest chance since inception, introducing the Shelley upgrade, which will further decentralize the token and offer even greater privacy and security. The change will result in a hard fork at the end of July, and holders can now transfer their funds to Shelley wallets. Those that do will receive staking rewards when the mainnet launches in earnest.

The successful launch of Shelley has helped push Cardano prices upwards, combining with a number of positive announcements and developments in recent weeks. ADA started the year at a price of $0.033, rose to $0.07 on February 13, and although it slumped to $0.022 during the March price crash, it has rocketed since then. Prices reached $0.088 on June 4. At the beginning of this month, the cryptocurrency rose from $0.083 to surpass the psychological resistance of $0.1 yesterday. However, the cryptocurrency has failed to hold the position and slipped back a little to $0.099, although it seems likely that the coin will continue to press the $0.1 level in the coming days.

Other announcements that may have helped the price include the US crypto exchange Paybito adding ADA to its ever-expanding list of coins. ADA joins the usual suspects of BTC, ETH, LTC, and other major coins on the exchange.

EMURGO, one of Cardano’s founding companies, has also announced a partnership with the online travel agent travala.com, so the booking website will accept ADA, adding to a list of 25 other cryptocurrencies and helping spread mainstream adoption and use of the privacy currency. Now the 8th biggest coin by market capitalization, ADA was once the 5th largest coin, and it has its sights set on reaching a similar level. At its current rate of price increase, it looks highly likely to retake Litecoin before settings its sights on Bitcoin forks Bitcoin Cash and Bitcoin SV.

At 14:15 GMT, Bitcoin (BTC) prices had fallen 0.39% to a cost of $9,073.30. Ethereum (ETH) is down 0.6% and changing hands at $226.13 while Ripple (XRP) has made a slight gain, adding 0.37% to its price and the currency is trading at $0.178. Bitcoin SV (BSV) and Bitcoin Cash (BCH) are both down, losing 0.36% and 0.56% to trade at $221.71 and $154.14 respectively.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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