Cardano Price Analysis: $0.375 Resistance Prevents Further ADA Growth

Last Updated July 23rd 2021
4 Min Read

Daily Cardano ADA Price Forecast
  • Cardano price has flipped the parabolic SAR from bearish to bullish.
  • Overcoming $0.375 barrier will take ADA to $0.40.

Before today, the Cardano price jumped from $0.312 to $0.365 before the sellers decided to jump in. During these three days, ADA repeatedly tried to break above the $0.375 but consistently failed. However, the bears took back control and have since corrected the price.

 

Cardano Price Still Has Room To Grow

During the three bullish days, the Cardano price has been on a proper upswing, reversing the parabolic SAR from bearish to bullish. This shows that the present market sentiment is positive, despite today’s ADA correction.

ada/usd daily chart 020121

Image: ADA/USD daily

As mentioned before, the Cardano price has repeatedly tried to overcome the $0.375 resistance barrier and failed. According to the IOMAP, 17,200 addresses had previously purchased 555M ADA tokens at this level. If ADA manages to overtake this zone, it will reach $0.40 with ease. The relative strength index (RSI) in the daily chart tells us that the price still has room to grow.

ada/usd volume chart 020121

Image: IntoTheBlock

The MACD in the 4-hour chart shows sustained bullish market momentum. This gives further credence to our overall bullish outlook for Cardano price.

ada/usd 4-hour chart 020121

Image: ADA/USD 4hour

 

In 59 Days Cardano Will Be Completely Operated By Stake Pools

Independent stake pool operators will produce all the blocks on the Cardano network by March 31st. IOHK (the company behind Cardano) will no longer participate in block production. This will make Cardano the only truly decentralized blockchain network on the market.

Several centralized blockchains and blockchain firms have been continually suffering issues arising from a lack of community participation in governance. Hence, the entire industry has been focused on achieving a more inclusive, decentralized future. 

However, only a few seem to be actively working towards this goal. Polkadot, Avalanche, Cosmos, Tezos, and Cardano are the only enterprises that have achieved significant decentralization. These companies have over half of their circulating supply staked to secure the network. Still, none of these entities are completely decentralized like Cardano will be in two months. 

4Charles Hoskinson, the CEO of IOHK, took to Twitter to say that the d-parameter will reach zero on epoch 257, which falls on March 31.

“Is everyone ready for epoch 257 on 2021-03-31 d=0 day -> #d(0)day when Cardano is completely in the hands of the SPOs!”

The d-parameter is a metric that represents the percentage of blocks on the network that are produced by IOHK. With Shelley's launch (Cardano’s staking phase that went live in July last year), the d-parameter was set at 1. This meant that the OBFT nodes managed by IOHK produced 100% of the blocks on the network. 

As every epoch goes on, the d parameter is set to decrease slightly until it finally reaches 0. In essence, this means that Cardano will finally switch from a static, federated system to a dynamic, decentralized one.

 

Cardano Price Is Expected To Reach These Levels

Cardan price will bounce up from the 20-day SMA ($0.35) and aim for the $0.375 resistance level again. If ADA breaks up, it will reach $0.40. If it fails again, the bears may take the price down to the 20-day SMA.

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