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Cardano Price Analysis: 20-day SMA Proves Crucial To ADA Bulls

Last Updated February 8th 2021

Daily Cardano ADA Price Forecast

  • Cardano price dropped by nearly $0.070 this Thursday.
  • The IOMAP shows one strong resistance wall at $0.34.

This Thursday, Cardano price dropped from $0.377 to $0.308. Prior to this drop, the smart contract platform was enjoying a bullish rally. On December 24, the Cardano price jumped from $0.137 to $0.38 on January 17. After trending horizontally for a bit, the price dropped drastically on Thursday. However, there is a silver lining in this cloud for the holders.

 

20-day SMA Prevents Further Cardano Price Downflow

The 20-day SMA has repeatedly provided support when required for the Cardano price. It looks like this narrative will continue as the buyers manage to bounce up from this level to take ADA up to $0.3233.

ada/usd daily chart 012221

Image: ADA/USD daily chart

Now that the bulls have taken back control, they face strong resistance at $0.34. Previously at this level,15,000 addresses had purchased nearly 2.4 billion ADA tokens. If the buyers manage to overcome this level, they should take Cardano price up to the $0.37 resistance barrier.

ada/usd volume chart

Image: IntoTheBlock

 

Lesser Addresses Entering Cardano

In the three-month timeframe, Cardano's daily new addresses reached a peak of 36,800 on January 6. However, since then, it has generally dropped down. As of writing, only 18,750 new addresses had entered this protocol. This is not a positive sign for overall network health.

ada/usd addresses chart 012221

Image: IntoTheBlock

 

Cardano Price Potential To Increase With Goguen and DeFI

Caradno's upcoming upgrade, aka the Goguen era, will enable users to earn yield on their ADA without having to unstake their tokens. Goguen will unlock smart contract functionality on the blockchain. One of the mere promising DeFi solutions happens to be Liqwid Finance, a DeFi solution built on Cardano that will enable users to earn governance tokens by providing liquidity to the ADA market.

 

Cardano Price Is Expected To Reach These Levels

Now that the buyers have taken back control, we can expect Cardano price to hit the $0.34 resistance barrier. A successful break will take it up to the $0.37 resistance level. However, if this resistance level fails to break, ADA may fall back to the 20-day SMA.

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