Cardano Price Prediction: ADA Creeps Above $0.35 As Low Volatility Sets In
Daily Cardano ADA Technical Analysis
- Cardano price managed to bounce up from the 20-day SMA.
- The Bollinger band in the 4-hour chart has started narrowing.
On January 21, Cardano price fell from $0.38 to $0.305 and dropped to the 20-day SMA. Since then, ADA bounced up from this level and reached up to $0.347. The price has entered a consolidation phase as it goes through a period of low volatility.
Cardano Price Has Managed To Flip Key Resistance
Cardano price has managed to flip the $0.35 technical level from resistance to support, but the buyers haven't really managed to do any severe damage. The latest candlestick reached an intraday low of $0.33 before it found support at the 20-day SMA.
Image: ADA/USD daily
On the other hand, the Cardano price reached an intraday high of $0.385 before getting rejected at the $0.37 resistance barrier. IntoTheBlock’s IOMAP shows us that Cardano price faces a moderate resistance at $0.37, where 20,500 addresses had previously purchased 774 million ADA tokens. If the buyers somehow conquer this zone, they should push ADA up to $0.40.
The 4-hour chart tells us that the Bollinger band is squeezing considerably. This tells us that the ADA is presently going through a period of low volatility. As such, wild price movements aren't expected.
Image: ADA/USD 4-hour
Cardano Daily New Addresses Decreasing
Along with low volatility, it also looks like the number of daily active addresses entering the Cardano network is getting increasingly lower. On January 17, 26,4000 addresses had entered the protocol. This number has been reduced to 14,500 as of writing. This isn’t a positive sign, as it tells us that the network is getting comparatively weaker.
Cardano Treasury Crosses $100M
The total value of assets locked in Cardano’s treasury recently surpassed $100 million, making it one of the largest decentralized blockchain treasuries.
Cardano Treasury aims to provide funds to develop the Cardano blockchain via a voting process. It comprises a decision-making system, which lets the community members collectively reach decisions that help run the network.
The treasury is funded through various channels. This includes taking a percentage of stake pool rewards and transaction fees, holding back a portion of newly-minted coins, and accepting donations (occasionally).
The Cardano Treasury holds over 261 million ADA. This will act as a safety net for the Cardano community, allowing them to explore different projects and ideas related to the network. With the amount of ADA in the treasury steadily increasing, developers will consistently access funding for their projects.
Cardano Price Is Expected To Reach These Levels
Cardano price is hovering above healthy support levels, so a drop is not expected. However, the low volatility tells us that the ADA isn’t going to reach new highs either. As such, a horizontal trend is probably in the cards.