Cardano Price Analysis: ADA Bears Push Price Below Crucial Level
Daily Cardano ADA Price Forecast
- The Cardano price flipped 200-day SMA from support to resistance.
- The MACD shows sustained bearish market momentum.
The Cardano price has been on a downward slide. Between July 5 and July 16, ADA crashed from $1.45 to $1.16 - flipping the 20-day SMA from support to resistance. While the 200-day SMA tried to stay strong, eventually, it also crumbled under bearish pressure.
Cardano Price Flips Crucial Level To Resistance
Over the last two days, the Cardano price is hovering horizontally above the 200-day SMA around $1.17. This Monday, ADA crashed to $1.125 and flipped the 200-day SMA from support to resistance. The MACD indicates increasing bearish market momentum.
Image: ADA/USD daily
The Cardano price has the nearest resistance at $1.25. Previously, at this level, over 132,500 addresses had purchased nearly 2.5 billion ADA tokens.
Crypto Analyst: Here Is Why Cardano Price Is Holding Up Well
Crypto analyst Benjamin Cowen recently outlined why he believes blockchain platform Cardano is performing well amid a broader corrective period in the crypto markets. In a new video, Cowen reasoned that Cardano is trending well because its platform is easy to use and validate. Cardano’s validators store a copy of the blockchain and are paid in ADA for their energy and services.
Cowen, who says he has attempted to run validator nodes for many projects, finds Cardano’s process to be the simplest.
“Given the current market conditions – why has it not dropped more? … I’ve explored running validators on a lot of networks, and I think Cardano is the easiest. It’s the easiest for validators for sure, and I think it’s relatively easy for delegators as well.”
Staking is also simple on Cardano, notes Cowen, who has been staking his own ADA. According to Cowen, ADA users continue to stake their coins amid the sustained crypto correction.
“Bitcoin’s down 50% and when you look at the active stake in the ITC pool, you can see that it’s just been going up….If people are not unstaking their ADA and instead are just continuing to either hold it or add to their stack, then it’s going to reduce the sell pressure. Now the staking and unstaking is obviously not going to be enough to … mitigate the effects of Bitcoin when it drops from [$64,000] down to [$29,000]… But the fact that it’s still trading at a $1.20 … it’s actually quite remarkable.”
Cardano insights platform PoolTool unveiled that over 70% of ADA’s circulating supply, worth over $28 billion, is currently staked. Cowen also said Cardano has good marketers behind it and is providing an easy way for holders to earn passive income. These factors, coupled with its slow and methodical rollout, are keeping ADA afloat during a turbulent period.
Cardano Price Is Expected To Reach These Levels
Having flipped the 200-day SMA from support to resistance, the Cardano price is falling towards the $1.10 support wall.