Cardano Price Analysis: ADA Falls After Getting Rejected At $1.10 Resistance Barrier

Last Updated July 23rd 2021
2 Min Read

Daily Cardano ADA Price Forecast
  • Cardano price faces multiple strong resistance barriers upfront.
  • ADA has dropped below the 20-bar SMA in the 4-hour chart.

Since March 10, the Cardano price has broken below key levels, falling from $1.19 to $1.08. With strong resistance barriers upfront, any upward movement for now seems pretty unlikely. Let’s take a closer look with technical analysis.

Cardano Price Under Bearish Influence

This Saturday, the Cardano price went up from $1.03 to $1.10. However, the resistance at this level has remained strong, which has caused ADA to go down to $1.085. The relative strength index (RSI) is hovering in the neutral zone, which shows that the bulls and bears have cancel each other out.

ada/usd daily chart 031521

Image: ADA/USD daily

On the downside, there are moderate support levels at $1 and $0.92 The $1 level is particularly important since many buyers are potentially looking to enter the market at this zone. Previously, 17,500 addresses have looked to buy 315 million ADA tokens at this zone.

ada/usd volume chart 031521

Image: IntoTheBlock

Looking at the 4-hour Cardano price chart, we can see that ADA dropped from $1.37 to $1.08 over five straight sessions. During this drop, the price fell below 50-bar and 20-bar SMAs. The MACD still tells us that the overall market sentiment is positive, despite this recent drop.

ada/usd 4-hour chart 031521

Image: ADA/USD 4-hour

Survey: Retail Investors More Bullish on ADA Than BTC, 

A recent survey by Voyager Digital has shown that US-based retail investors are currently more bullish on Cardano’s ADA than they are on Bitcoin. According to a Decrypt report, the survey revealed that 31.9% of polled investors are the “most bullish” on Cardano, while 22.2% chose BTC over ADA. The results come after Cardano hit an all-time high last month, briefly becoming the fourth-largest crypto asset by market capitalization. 

Steve Ehrlich, CEO of Voyager Digital, said: 

Of course, everyone is talking about Bitcoin these days, but seeing Cardano coming ahead of it was a really big surprise for us. 

After BTC, investors were “most bullish” on Ethereum (12.2%), followed by Polkadot (6.3%). According to Ehrlich, the results show that the crypto ecosystem’s diversity has grown in recent times as investors have more assets to choose from. 

Voyager Digital surveyed 1,385 investors in the US and discovered that the majority expected Bitcoin’s price to trade between $51,000 and $60,000 by the end of March. Around 80% of respondents said that they’re planning to buy more BTC over the month. 

60% of the survey participants are reportedly confident Bitcoin and other digital assets represent the greatest store of value, above gold (8%), equities (6%) and top-tier government bonds (1%). Google searches for cryptocurrency surpassed their 2017 high last month, and have kept on increasing since. Google searches in the crypto space are often used to measure retail investor interest. 

Cardano Price Is Expected To Reach These Levels

The Cardano price is going to hover between the $1.10 and $1 levels.

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