Cardano Price Prediction: ADA Sandwiched Between Two Key Levels
Daily Cardano ADA Technical Analysis
- Cardano price MACD shows increased bearish momentum.
- The 20-day and 50-day SMAs sandwich the Cardano price.
Since April 16, the Cardano price crashed from $1.48 to $1.23, losing around $0.25 in its overall valuation. In the process, ADA bears completely negated the gains that the buyers made over six days between April 10 and April 15. However, the buyers attempted a comeback this Tuesday.
Cardano Price Negates Monday’s Losses
Looking at the Cardano price daily chart, ADA jumped from $1.185 to $1.27, after bouncing up from the 50-day SMA. In the process it completely negated the losses that Cardano endured this Monday. However, the ADA faced resistance at the 20-day SMA and dropped to $1.24. The MACD still shows increasing bearish momentum and the parabolic SAR has flipped from positive to negative.
Image: ADA/USD daily
Looking at the IOMAP, the strong support lies at the 50-day SMA ($1.20), wherein 178,000 addresses had purchased over 3 billion ADA tokens.
Cardano Staked Count Exceeds Polkadot (DOT) With $29 billion staked
According to CryptoDiffer, Cardano users have staked $28.95 billion on the platform, exceeding that of Polkadot (DOT), which comes in at $25.43 billion.
While the hype around ICOs, the high cost of Ethereum DeFi, and non-fungible tokens (NFT) dying down, staking appears to be the only viable long-term future. Proof-of-Stake (PoS) is an alternative, energy-efficient consensus mechanism to Proof-of-Work (PoW). PoS uses a definitive algorithm to select nodes based on the number of taken holds instead of depending on energy-dependent mining.
Staking rewards are given to users who stake their tokens, making it the easiest way to earn passive income. Compared to trading and DeFi liquidity positions, staking is a safer way to earn. In July 2020, the Shelley phase brought staking to the Cardano network.
The initial number of pools was 700 and the number of active pools has tripled to over 2,300 at the moment. The total percentage of ADA stake is also on an upward trend, which is beneficial for its long-term future.
Cardano Price Is Expected To Reach These Levels
The buyers will need to push Cardano price over the 20-day SMA to reach the $1.35 resistance barrier.