Cardano Price Analysis: ADA Buyers Retake Control After Bearish Sunday
Daily Cardano ADA Price Forecast
- The Cardano price had retreated from $1.50 for the last three days.
- The MACD indicates sustained bullish market momentum.
The Cardano price has been on an upward surge between July 21 and August 7, during which it went from $1.05 to $1.48. During this jump, Cardano managed to:
- Flip the 20-day, 50-day, and 200-day SMAs from resistance to support.
- Reverse the MACD from red to green.
Due to this jump, the relative strength index (RSI) crept into the overbought zone, which incited an immediate bearish correction on August 8 wherein ADA dropped to $1.42.
Cardano Price Repeatedly Drops From $1.50 Psychological Level
On August 9, the Cardano price jumped from $1.42 to $1.47 as buyers retook control. ADA reached an intraday high of $1.50 for the last three days before it retreated. A further rise will take the relative strength index (RSI) into the overbought zone, which could trigger another bearish correction.
Image: ADA/USD daily
The Cardano price faces a massive resistance at $1.55. Previously, at this level, more than 93,500 addresses had purchased nearly 1.20 billion ADA tokens.
Here Are The Changes That the Alonzo Hard Fork Will Bring
Shortly after Cardano’s Alonzo Purple testnet went live, IOHK explained what achieving this milestone means. The CTO of blockchain company dcSpark explained how the Cardano ledger is being changed to support smart contracts.
The “Alonzo” hard fork will “bring exciting and highly-anticipated new capabilities to Cardano through the integration of Plutus scripts onto the blockchain.” This will mean support for smart contracts in Cardano, thereby addressing a major criticism of Cardano and opening the door to a whole set of new and exciting decentralized finance (DeFi) apps.
Alonzo functionality was scheduled to get tested in three phases: Blue, White, and Purple. On August 6, IOHK, the firm behind Cardano, announced that the Alonzo Purple testnet had gone live. IOHK went on to say that Alonzo Purple will be the first fully public Cardano testnet to support smart contracts.
It also mentioned that the 150+ members of the testing team are invited to join the Alonzo Purple network. It added that 300 graduates from the Plutus Pioneer Program have also been invited to try the Alonzo Purple network.
Sebastien Guillemot, the CTO of dcSpark, published a blog post that summarized the 12 main changes being made to the Cardano ledger to make it support smart contracts.
Per the blog, transaction validation has two phases: phase one “ensures Plutus contract execution will be deterministic” and phase two “executes the Plutus contract."This means that, unlike Ethereum smart contracts, Plutus smart contracts “should never fail with out of gas!”
Notably, the “minimum $ADA value in UTXO entries” is being changed from “a constant 1 ADA to a protocol parameter to that it can be changed in the future," the blog noted.
Cardano Price Is Expected To Reach These Levels
If the buyers do manage to push the Cardano price above the $1.55 resistance barrier, ADA should reach $1.60. However, this will make the asset overpriced, which will incite a bearish correction.