Cardano Price Analysis: ADA Drops Below Key Levels

Daily Cardano ADA Price Forecast

Last Updated July 23rd 2021
2 Min Read
  • Cardano price MACD has flipped from bullish to bearish.
  • The 20-day and 50-day SMAs have flipped from support to resistance. 
  • Since April 16, the Cardano price crashed from $1.48 to $1.23, losing around $0.25 in its overall valuation. In the process, ADA bears completely negated the gains that the buyers made over six days between April 10 and April 15.

    Cardano Price Has Dropped By $0.25

    Looking at the Cardano price daily chart, ADA has flashed the following sell signals:

    • The MACD has flipped from bullish to bearish.
    • The 20-day and 50-day SMAs have flipped from support to resistance.
    • The parabolic SAR has reversed from positive to negative.

    Image: ADA/USD daily

    Cardano ADA Daily Chart

    Looking at the IOMAP, the strong support lies at the 50-day SMA ($1.20), wherein 178,000 addresses had purchased over 3 billion ADA tokens.

    Image: IntoTheBlock

    Cardano ADA Volume Chart

    Cardano’s Hoskinson: Proof-of-Work Is A Road To Nowhere

    Charles Hoskinson, the CEO of IOHK (the firm behind Cardado), recently commented on the Bitcoin hashrate drop that took place after a blackout struck some small counties in the province of Xinjiang. Although the hashrate has been quickly climbing back up in the past day, the incident has been used to highlight what some consider a “Bitcoin problem”. 

    Hoskinson took to Twitter to comment on the incident. 

    Proof of stake doesn’t suffer from this problem wake up people! Nakamoto consensus is a road to nowhere.

    In 2020, Cardano transitioned from a Proof-of-Work consensus algorithm to a Proof-of-Stake. This kickstarted Cardano’s Shelley era. In an earlier interview, Hoskinson said that the latter has more advantages than the former. 

    The issue is it can never get better by design. The more successful bitcoin gets, the higher the price goes; the higher the price goes, the more competition for bitcoin; and thus, the more energy is expended to mine. 

    However, Castle Island Ventures’ Nic Carter said a daily 40% down on Bitcoin’s hashrate should be a percentage to be handled carefully. 

    Whole decline is not statistically significant (HR variance extremely high). Need to look at longer timeframes (ideally 7d) to determine effect on hashrate. 

    Cardano Price Is Expected To Reach These Levels

    The buyers will need to push Cardano price over the 20-day SMA to reach the $1.35 resistance barrier.

Top Brokers in
    All Regulated Brokers
    67% of retail clients lose money when trading CFDs with this provider.