- Cardano price has been hovering horizontally below $1.20 for the last six days.
- The MACD shows sustained bearish momentum,
On March 25 and March 26, the Cardano price jumped from $1.07 to $1.21, gaining almost $0.14, However, since then, ADA has found major resistance at the $1.20 line. Let’s take a closer look with technical analysis.
Cardano Price Moves Horizontally Around $1.19
As things stand, the Cardano price has been sandwiched between the 20-day SMA and the $1.20 resistance line. It has been trending around this zone for the last six days. However, it looks like the 20-day SMA is going to be tested soon as the MACD shows increasing bearish momentum.
Image: ADA/USD daily
The $1.20 line is a significant point of resistance for Cardano price as seen in the IOMAP. Previously, 130,000 addresses had purchased 3.45 billion ADA tokens at this zone. On the downside, both 20-day and 50-day SMAs provide healthy support.
Cardano Decentralizes Block Production
IOHK (the firm behind Cardano) has successfully decentralized block production as of yesterday. In other words, IOHK will no longer produce blocks on Cardano as the responsibility is now entirely in the hands of the Cardano community.
The move marks an important milestone for Cardano, which will eventually achieve complete decentralization of governance and network. That is, the community will control every aspect of the development and health of the blockchain.
IOHK’s block production handover has been a gradual process, carried out over the past seven months. This steady pace has allowed the team to ensure the platform was optimized throughout the process. Control over block production has now been handed over to Cardano’s network of over 2,000 community stake pools.
Aparna Jue, Product Director at IOHK, said:
Since the Shelley update in July last year, we’ve been working with our stake pool operator community to ensure that the steady transfer of responsibility for block production in Cardano is predictable and smooth. This is a key milestone in Cardano’s development, as it is the first component of the handover of control to the community.
When it comes to decentralization, IOHK defines this as requiring three distinct elements: block production, governance, and network. IOHK has now achieved decentralization of block production. Governance helps manage update and improvement proposals in a fair, inclusive manner. The network, as in the infrastructure and protocols, must also decentralize. The network would be entirely decentralized after all three elements are achieved.
Cardano Price Is Expected To Reach These Levels
The Cardano price will likely keep trending around the $1.20-level.