Cardano Price Analysis: ADA Is Sandwiched Between Crucial Levels
Daily Cardano ADA Price Forecast
- Cardano price had four straight bearish days between April 16 and April 19.
- ADA has been hovering horizontally over the last 3 days.
Cardano price had four straight bearish sessions wherein ADA dropped from $1.48 to $1.19, losing almost $0.30 in overall valuation. During this dip, the price flipped the 20-day SMA from support to resistance and has found strong support on the 50-day SMA.
Overall Sentiment For Cardano Price Remains Bearish
The Cardano price is now sandwiched between the 20-day and 50-day SMAs and hovering around $1.20. The overall sentiment for ADA is negative since the MACD shows increasing bearish market momentum and the parabolic SAR indicates bearish outlook.
Image: ADA/USD daily
Looking at the IOMAP, we can tell that the strong resistance barrier for Cardano price is at the 20-day SMA ($1.25) wherein 160,000 addresses had purchased 3.6 billion ADA tokens.
Developers To Ditch Ethereum For Cardano?
Cardano (ADA) has scored impressive gains over the last ten weeks. The asset recorded an impressive 3,800% gain over the past year. The blockchain network is currently preparing to run Alonzo, a key upgrade, which is the last part of the Goguen phase. Cardano’s director of marketing and communications, Tim Harrison, said that the Alonzo update would make Cardano a serious competitor against the Ethereum network. The outcome would lead to a mass exodus of developers from Ethereum to Cardano.
The Alonzo update is expected to lead the era of smart contracts on Cardano and support DeFi protocols. As expected, this possibility has generated a boost in developer interest in the network. The Cardano network is known for its efficiency and cost-effectiveness. While devs are paying huge network fees on the Ethereum network, Cardano offers a far cheaper option.
So far, the only limitation of Cardano is the lack of support for DeFi and scalability. This will drastically change once the Alonzo update goes live. Cardano founder Charles Hoskinson said that he is thrilled that the network is finally developing a capability to affect real change and impact the lives of numerous people across the world.
According to Hoskinson, the update will open the door for billions of dollars to be injected into the crypto ecosystem running on the Cardano network, especially concerning DeFi protocols. This economic balancing could have the potential to “change the lives of a billion people.”
Cardano Price Is Expected To Reach These Levels
The Cardano price will keep hovering between the 20-day and 50-day SMAs.