Cardano Price Prediction: ADA Faces Immediate Resistance At $1.12
Daily Cardano ADA Technical Analysis
- The Cardano price has flashed the buy signal in the TD sequential detector.
- The MACD shows increasing bearish market momentum.
The Cardano price dropped from $1.48 to $1.10 between April 16 and April 24. During this downward surge, ADA flipped the 20-day and 50-day SMAs from support to resistance. Let’s take a closed look with technical analysis.
Cardano Price Flashes Buy Signal In TD Sequential Detector
The MACD in the Cardano daily price chart shows increasing bearish market momentum so a further drop is expected. However, the TD sequential detector has already flashed the buy signal in the form of a red-nine candlestick. As such, the buyers may take control of the market soon.
Image: ADA/USD daily
As per the IOMAP, Cardano price has a strong resistance at $1.12. Previously, at this level, nearly 117,500 addresses had purchased a little over 3.4 billion ADA tokens. If ADA conquers this line, it still has the opportunity to make a break for the $1.20 barrier.
Charles Hoskinson: Biden Capital Gains Tax Plan Could Be Seriously Bearish for Crypto Markets
Charles Hoskinson, the creator of Cardano and CEO of IOHK, recently warned that the Biden administration’s plan to increase the tax rate on capital gains might negatively impact the cryptocurrency market.
In an Ask Me Anything (AMA) session, Hoskinson noted that the cryptocurrency markets could cave in if the current administration decides to levy additional taxes on capital gains.
You can’t predict these prices and there’s too many moving factors. Especially if capital gains doubles, it is going to be devastating for the markets. They are going to collapse.
Currently, the long-term capital gains tax rate is 23.8%, and with Biden’s proposal, the number could surge as high as 43.4%. Hoskinson revealed that he would be personally affected by the proposed tax hikes.
It looks like my personal taxes are going to double as well. The latest tax proposal on capital gains is going from 20% to 43.5%.
In the AMA session, Hoskinson also mentioned that he has never owned ETH except for the proceeds of a tweet he sold as a non-fungible token (NFT) earlier. Notably, Hoskinson was a co-founder of Ethereum. The Cardano creator added that he gave away his allocation of the pre-mined Ether that was meant for founders and developers at the launch of the blockchain platform half a decade ago.
Cardano Price Is Expected To Reach These Levels
The Cardano price will likely approach the $1.12 resistance barrier if the bullish tendency continues.