Cardano Price Analysis: ADA Flips 50-day SMA From Resistance To Support

Daily Cardano ADA Price Forecast

Last Updated August 2nd 2021
2 Min Read
  • The Cardano price has crossed the $1.35 psychological level.
  • ADA keeps going up despite flashing a sell signal.

The Cardano price has been going through a bullish rally and jumped to $1.40 before retreating to $1.36. Previously, Cardano dropped from $1.45 to $1.05 between July 5 and July 20, flipping the 20-day and 200-day SMAs from support to resistance.

Cardano Price Flips Crucial Level To Support

The Cardano price has been on a continuous upward surge. Between July 21 and August 1, ADA managed to have 10 bullish days out of the last 12 and jumped from $1.05 to $1.36. Due to this jump, ADA managed to:

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

Image: ADA/USD daily

ADA/USD daily chart 080221

As mentioned, the Cardano price faces resistance at the 50-day SMA ($1.40). Previously, at this level, around 106,000 addresses had purchased nearly 884 million ADA tokens.

Image: IntoTheBlock

ADA/USD volume chart 080221

Cardano’s First Decentralized Exchange Raises $1.5M

Cardax, the first decentralized exchange set to launch on the Cardano network, has raised $1.5 million from its first community sale, ahead of the trading platform’s launch in the third quarter of the year, when smart contracts are available on Cardano.

According to a statement from Cardax, the exchange will operate on the Extended Automated Market Maker (EAMM) protocol and will aim to serve as the native trading platform for the Cardano ecosystem. The project is led by Ryan Morrison and his team and raised $50,000 earlier this year to finance its development.

The team behind it is formed by “crypto enthusiasts” with experience on several projects. Cardax “aims to provide liquidity to projects that issue native tokens on Cardano." Cardano founder Charles Hoskinson recognized the project after it won a proposal via Project Catalyst.

Cardax said:

"Thanks @IOHK_Charles for your congratulations! We are very happy to have won #ProjectCatalyst! The fact that the #CardanoCommunity has given us this prize means a lot to us. We will keep on working hard to deliver the best #DEX on #Cardano. Looking forward to the go live!"

Cardax is looking to implement key features that go beyond native support for native tokens on Cardano. It would also allow users to earn as liquidity providers from the fees the exchange collects, to trade ADA with any native token through the Yoroi Cardano wallet. They can also trade in single transactions.

It will leverage a centralized order book along with the automated market maker (AMM) model. Its features are set to let market makers earn with minimum slippage and risk of impermanent loss.

Cardano Price Is Expected To Reach These Levels

If the buyers push the Cardano price above the 50-day SMA, ADA should reach the $1.40 psychological level. The next strong obstacle is the $1.45 barrier.

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