Cardano Price Prediction: ADA Struggles To Break Above 20-day SMA
Daily Cardano ADA Technical Analysis
- The Cardano price dropped below $1.40 yesterday.
- ADA will flip the parabolic SAR to positive by taking down 50-day SMA.
Between June 23 and July 4, the Cardano price climbed from $1.15 to $1.45 and flipped the 20-day SMA from resistance to support. During this jump, ADA reversed the MACD from bearish to bullish. This is what happened after that.
Cardano Price Drops Below $1.40
Since July 5, the Cardano price entered a bearish trend during which ADA dropped from $1.46 to $1.34. The price managed to flip the 20-day SMA from support to resistance this Thursday as ADA fell below $1.40. The MACD still indicates sustained bullish momentum.
Image: ADA/USD daily
The Cardano price faces crucial resistance at the 20-day SMA ($1.35). Previously, at this level, over 143,500 addresses had purchased nearly 2.85 billion ADA tokens.
eToro Report: Cardano Overtakes Bitcoin as the Most-Held Crypto
Cardano (ADA) recently overtook Bitcoin as the most-held cryptocurrency on the popular eToro trading platform during the second quarter of the year after seeing a 51% rise compared to the previous quarter. Meanwhile, Bitcoin saw demand for it move up 42% during the same period, according to CityAM.
Simon Peters, a crypto market analyst at eToro, reportedly said the growth and use case potential for Cardano’s native ADA token attracted investors.
Cardano added the ability for developers to launch native tokens on its blockchain earlier this year after the launch of the much-anticipated Mary hard fork. It would allow devs to build and deploy smart contracts on its network through a major upgrade called Alonzo, which will permit DeFi applications to be deployed on the blockchain.
"This upgrade will be significant as it will enable developers to build projects on the network, helping Cardano to position itself as a real ‘competitor’ to the likes of Ethereum.
The recent milestone comes when 70% of ADA’s circulating supply is staked and after the cryptocurrency moved up exponentially over the last few months. On the other hand, Ethereum saw its popularity rise 79% ahead of the London hard fork, which would alter the fee structure on the network.
The London hard fork is another step towards Ethereum 2.0 and will make Ethereum a less inflationary asset. To some, if demand gets sufficiently high, it could even become deflationary, as transaction fees will be burned. Peters noted:
"Cryptoassets have had an exciting year, with big milestones achieved in terms of price movements and increased institutional investment signaling more adoption by the traditional financial services ecosystem."
In Q2 2021, other crypto-assets also saw their popularity explode on eToro. TRON’s TRX and Ethereum Classic (ETC) moved up 163% and 161% respectively, compared to the first quarter of the year.
Cardano Price Is Expected To Reach These Levels
Te Cardano price needs to flip the 20-day SMA from resistance to support to prevent immediate drops. Following that, ADA must take down the 50-day SMA and flip the parabolic SAR from negative to positive in the process.