Cardano Price Prediction: ADA Bulls Retreat From $1.50 Level

Daily Cardano ADA Technical Analysis

Last Updated July 23rd 2021
2 Min Read
  • Prior to Friday, Cardano price had six straight bullish sessions.
  • Cardano’s nearest healthy support is at $1.36.
  • Prior to this Friday, the Cardano price jumped from $1.20 to $1.48, gaining almost $0.28 in six days. Following that, the buyers faced rejection around the $1.50 psychological level before it faced a slight correction.

    Cardano Price Sits On Robust Support At $1.36

    Cardano price faced a slight correction and is currently priced at $1.38. The MACD shows increasing bullish market momentum, while the relative strength index (RSI) is creeping along the edge of the overbought zone. It seemed like the ADA may drop a little more to take RSI into the neutral zone.

    Image: ADA/USD daily

    ada/usd daily chart 041621

    Looking at the IOMAP, we can see that Cardano price has a robust support line at $1.36. Previously, at this level, 56,600 addresses had purchased 1.82 billion ADA tokens.

    Image: IntoTheBlock

    ada/usd volume chart 041621

    Cardano To Soon Have Plutus-Powered Smart Contracts

    Cardano has recently shared details on Plutus - the platform’s native programming language used to write smart contracts once the Alonzo upgrade is live. In a blog post, IOHK (the firm behind Cardano), explained that Plutus contracts consist of parts that run on-chain and parts that run on the user’s machine off-chain.

    The company added that both parts are written in the Haskell programming language but are compiled by Plutus, which provides the framework for smart contracts on Cardano. Similar to Bitcoin, Cardano uses the UTXO (unspent transaction output) model, where the inputs are unspent outputs from previous transactions. Notably, Cardano has employed an extended UTXO model (EUTXO) that offers unique advantages compared to other accounting models.

    The EUTXO model essentially allows the validity of transactions to be checked off-chain before the transaction is sent to the blockchain. Ethereum Layer 1, on the other hand, processes transactions all on-chain. Transaction execution costs can be also determined off-chain before transmission, which is another unique feature.

    To define the parameters of these EUTXO transactions and compile the code developed for smart contracts, the platform will use Plutus Core. A Plutus Application Framework (PAF) will provide easy access to services and applications running on the network with full web browser interoperability. 

    Applications written on top of the PAF automatically provide an HTTP and WebSocket interface that can be used to interact with the application from the web browser.

    Cardano Price Is Expected To Reach These Levels

    The Cardano price may drop to the $1.36 support wall before it bounced up and retests the $1.50 psychological level once again.

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