Cardano Price Analysis: ADA Stuck Between Two Heavy Levels

Daily Cardano ADA Price Forecast

Last Updated July 23rd 2021
2 Min Read
  • Cardano price had two straight bearish sessions.
  • Healthy support for ADA lies at $1.55.
  • Between May 17 and May 23, the Cardano price dropped by $1 as it crashed from $2.30 to $1.30. This preceded a hattrick of bullish days wherein ADA went up from $1.30 to $1.70. However, Cardano met resistance at the 20-day SMA and then went down with three straight bearish days, as it flipped the 50-day SMA from support to resistance.

    Cardano Price Flashes Bullish Engulfing Pattern

    This Sunday, the Cardano price jumped from $1.40 to $1.64 and reversed the 50-day SMA from resistance to support. In the process, the two latest candlesticks have formed the bullish engulfing pattern. ADA faces resistance at the 20-day SMA. However, the MACD shows sustained bearish market momentum, so it is unlikely that ADA will overcome this line any time soon.

    Image: ADA/USD daily

    Cardano ADA Daily Chart

    Looking at the IOMAP, we can see that Cardano price faces resistance at the 20-day SMA. Previously, at this level, over 130,000 addresses had purchased almost 2.5 billion ADA tokes.

    Image: IntoTheBlock

    Cardano ADA Volume Chart

    Cardano Successfully Launches Testnet For Smart Contract Integration Approaches

    IOHK, the firm behind Cardano, revealed that it has rolled out a testnet that is important in the smart contract integration of ADA. IOHK noted that Alonzo Blue is up and running. Alonzo Blue is the first of three development stages aimed toward the launch of smart contract capabilities for Cardano

    Alonzo Blue is our early alpha network, providing core Alonzo-node networking capability. We’ve now started the process of onboarding a small, select group of SPOs (stake pool operators) & Plutus Pioneers to help lay the foundations.

    Cardano’s roadmap to the launch of smart contract capabilities will be followed by Alonzo White and Alonzo Purple. 

    We move on to [Alonzo] White where we now cast a little bit wider net and we bring in more partners and now you start running more performance benchmarks and things of that nature. The White rolls into Purple which is now fully public. We’re talking about every pioneer. We’re talking about most SPOs, if not all SPOs. We’re talking about exchanges.

    Cardano creator and IOHK CEO Charles Hoskinson said that he expects the Alonzo upgrade to bring a lot of activity to the company and the wider Cardano community in the next three months. Alonzo will integrate smart contract functionalities into the platform by August. 

    He said:

    “So this is probably going to be the busiest 90 days in my company’s history and in the ecosystem’s history.”

    Cardano Price Is Expected To Reach These Levels

    The Cardano price will need to take down the 20-day SMA ($1.72) to reach the $2 psychological level.

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