Cardano Price Prediction: ADA Bulls Press The Brakes At The 20-day SMA

Daily Cardano ADA Technical Analysis

Last Updated July 23rd 2021
3 Min Read
  • Bears take control of Cardano price after two bullish days.
  • Strong support walls on the downside for IOMAP.
  • Prior to this Tuesday, the Cardano price had jumped from $1.39 to $1.74 over two days, crossing the $1.50 psychological and the 20-day SMA. However it seems like after climbing up to $1.85, the bears have taken control of ADA.

    Cardano Price Creeps Below 20-day SMA

    The sellers have so far pushed the Cadano price down to $1.72 and has currently slipped below the 20-day SMA. The MACD shows us that the current market momentum is still bearish, so a further negative drop is in the cards.

    Image: ADA/USD daily

    ADA/USD daily chart 060221

    Looking at the IOMAP, we can see that Cardano price faces resistance at the 20-day SMA. Previously, at this level, almost 25,000 addresses had purchased over 301.5 million ADA tokens.

    Image: IntoTheBlock

    ADA/USD volume chart 060221

    Charles Hoskinson: Crypto Space Will Replace the Traditional Financial System

    Charles Hoskinson, the creator of Cardano, revealed that he believes the crypto space will take over the traditional finance system and change the world shortly. In a YouTube video, Hoskinson explained that the industry is the “antidote to the excesses, corruption, and nepotism that we found.”

    Per Hoskinson, the traditional financial system has now been replaced by an industry of creativity and innovation. He added that "there are simply too many people for the crypto space to be forgotten now." He noted that the “markets are too large while the innovation is simply too vast.” 

    Hoskinson also said that while cryptocurrencies may still be in their infancy, he sees the industry mature quickly. In his opinion, over the next ten years, “there’s going to be more advancement in monetary policy from our industry than the last 100 years of central banks.” 

    The co-creator of Cardano added that in the next decade, he sees the cryptocurrency space become more advanced in financial engineering and the construction of financial products than there was in the last 100 years on Wall Street. Similarly, he sees more progress being made on the constant movement of wealth in crypto than through the Bank of International Settlements (BIS) and other fixed protocols. He said:

    Unlike the past cycles in 2017 and 2018 compared to today where we’re at, we’re now in a situation where we’ve decoupled from Bitcoin, and people are starting to realize that while [Bitcoin] was a great experiment, it’s not the end-all-be-all and that there’s more to the story.

    According to earlier reports, Hoskinson has revealed in an ask me anything (AMA) session that he is now a cryptocurrency billionaire.

    Vast Majority Of Cardano Holders Remain In Profit

    Cardano Historical Break Even Price

    According to Into The Block, almost >80% of the Cardano addresses are currently in profit, which is a very good sign.

    Cardano Price Is Expected To Reach These Levels

    As things stand, the Cardano price will need to take down the resistance at the 20-day SMA ($1.72), again. However, the market sentiment is leaning on the bearish side. However, the IOMAP shows several strong support walls on the downside so further drop could be expected.