Cardano Price Analysis: ADA Drops After Failing At Crucial Level
Daily Cardano ADA Price Forecast
- Cardano price has dropped after encountering resistance at 20-day SMA.
- MACD indicates sustained bullish market momentum.
The Cardano price crashed under extreme bearish pressure between June 4 and June 22 as it fell from $1.84 to $1.15 and flipped both the 20-day and 50-day SMAs from support to resistance. Following this crash, the buyers attempted to take back control.
$1.30 Support Holds Strong For Cardano Price
The Cardano price jumped from the $1.15 support wall of June 23 and then jumped to $1.33 till June 30. In the process, ADA managed to reverse the MACD from bearish to bullish. However, this bullish rally was put to a stop by the 20-day SMA which forced Cardano to drop to $1.33. In fact, ADA had an intra-day low of $1.20, but the $1.30 support wall came to its rescue.
Image: ADA/USD daily
As per the IOMAP, the Cardano price important support around $1.30. Previously, at this level, over 125,000 addresses had purchased nearly 2.47 billion ADA tokens.
$31B Worth of ADA Now Staked in Cardano
PoolTool, an online platform built to provide up-to-date data on Cardano’s metrics, recently showed that holders have locked up over $31 billion worth of ADA into 667,456 staking addresses. Staking allows crypto investors to generate rewards on their assets by depositing coins into the protocol to validate network transactions.
While staking, those assets are locked up for a certain period of time, during which they become unspendable. In the case of Cardano, users can unlock their staked ADA and spend their coins at the time of their choosing.
The 667,456 stake addresses represent an 11% increase since early June when Cardano passed the 600,000 addresses milestone. Those addresses are split between 2,665 active pools, according to PoolTool.
The $31 billion worth of Cardano that is staked also represents more than 71% of the $44.20 billion total supply of the digital asset.
The total amount of ADA staked far exceeds the dollar value of Ethereum currently deposited into the ETH 2.0 smart contract. ETH holders who seek to become validators have collectively locked up roughly 5.98 million ETH to the tune of $13.74, according to analytics platform Etherscan.
Ethereum 2.0, the highly-anticipated update of the second-largest crypto asset by market cap, is the scaling solution that will shift the network over from a proof-of-work (PoW) to a proof-of-stake (POS) consensus mechanism. According to Ethereum co-founder Vitalik Buterin, the smart contract platform will eventually be capable of facilitating 100,000 transactions per second (TPS) via second-layer solutions.
The team building Cardano said the long-awaited integration of smart contract functionality is coming in August. The firm is also preparing to launch a converter that will enable users to swap supported Ethereum tokens (ERC-20) to special Cardano-based assets.
Cardano Price Is Expected To Reach These Levels
So, far, the $1.30 support wall has remained strong and prevented a further drop. However, if this level does break, the Cardano price will fall to the $1.15 line. Now, if the bulls suddenly regain control and manage to break past 20-day SMA, they will need to take down the 50-day SMA as well to reverse the parabolic SAR from positive to negative.