Cardano Price Analysis: ADA Flips 200-day SMA From Resistance To Support

Daily Cardano ADA Price Forecast

Last Updated July 23rd 2021
2 Min Read
  • Cardano price has two straight bullish days.
  • The MACD is on the verge of reversing from bearish to bullish.
  • Between July 5 and July 20, the Cardano price dropped from $1.45 to $1.05. Due to this fall, ADA managed to:

    • Flip the 20-day and 200-day SMAs from support to resistance. 
    • Reverse the MACD from green to red.

    Let’s see how the buyers took control following this drop.

    Cardano Price Looks To Enter The $1.20 Psychological Level

    The Cardano price jumped from $1.05 to $1.20 over the last two days, during which it reversed the 200-day SMA from resistance to support. Due to this jump, the MACD is on the verge of flipping from bearish to bullish.

    Image: ADA/USD daily

    ADA/USD daily chart 072321

    The Cardano price has the nearest resistance at the 20-day SMA ($1.25). Previously, at this level, over 120,000 addresses had purchased nearly 2.7 billion ADA tokens.

    Image: IntoTheBlock

    ADA/USD volume chart 072321

    What Cardano Needs To Do Now

    Charles Hoskinson, the CEO of IOHK, recently said that work on Alonzo’s update is “going smooth,” and the community will receive an update about it soon. Alonzo is expected to bring smart contract capabilities to the Cardano ecosystem.

    Many believe that recent updates have further strengthened the arguments of those who see it as an alternative to Ethereum. This was the expectation highlighted by the Foundation recently, with Hoskinson recently outlining the progress of Alonzo. 

    “Application backend integration is on schedule, the wallet backend integration is on schedule….. Now, we’re in the white era and right now we are mass onboarding people and pushing out the new node version 1.2.8, that coming soon.”

    The Alonzo update is taking place in phases and with its launch. The team just completed the blue era recently, moving on to the White era. These sub-stages of launch will be followed by a mainnet launch on the Cardano network in September. According to Hoskinson, however, as this closes in, his priority will lie with getting Cardano into the browser.

    While talking about Mithril, Cardano’s light client protocol, the CEO noted that it would enable complete security to assure clients and fast bootstrapping – where there can be certificates created for each epic while allowing the ability for parallel validation of the epics.

    Though these features can be added easily, Hoskinson argued that it needs a new crypto-primitive. To find the same would be a high priority as it would spur growth for Cardano, he added.

    “Getting Cardano into the browser and making sure that that’s a great experience… getting Cardano on cell phone and tap ecosystem on the cell phone is a high priority. As we march towards Goguen, it’s very important that we also have a strategy to make sure that light client experience gets where it needs to go.”

    Cardano Price Is Expected To Reach These Levels

    Crossing the 20-day SMA will cause the parabolic SAR to reverse from negative to positive. The Cardano price will need to carry on with this momentum and touch the 50-day SMA ($1.40).