Cardano Price Prediction: ADA Tests The $1.16 Support Level

Daily Cardano ADA Technical Analysis

Last Updated July 23rd 2021
2 Min Read
  • Cardano price on the verge of flashing red-nine candlestick
  • MACD shows increasing bearish market momentum.
  • The Cardano price has crashed from $1.575 to $1.16 between June 15 and June 22, losing almost $0.15 in its overall valuation. Prior to that, ADA had dropped from $1.85 to $1.43 between June 4 and June 11, flipping the 20-day and 50-day SMAs from support to resistance. 

    Cardano Price Bounces Up From $1.16 Support

    The Cardano price bounced up from the $1.16 support wall and is currently valued at around $1.23. Despite this drop, the MACD shows sustained negative momentum so a further drop is expected. As per the TD sequential detector, Cardano could drop for two more sessions before flashing the buy signal in the form of a red-nine candlestick.

    Image: ADA/USD daily

    ADA/USD daily chart 062321

    As per the IOMAP, the Cardano price has crucial support at $1.16. Previously, at this level, over 70,000 addresses had purchased nearly 1.45 billion ADA tokens.

    Image: IntoTheBlock

    ADA/USD volume chart 062321

    More From Cardano Africa

    John O'Connor, the Director of African Operations at IOHK (the firm behind Cardano), recently said that a significant deal is in the works. Like the earlier Tanzania tie-up, this will likely feature cooperation between a local government and the private sector, with the Cardano technology bridging the partnership.

    Although O’Connor has not disclosed the specifics of the new deal, he said that it relates to payments and open finance. On June 9th, the executive tweeted about bringing on board an additional one million users to the Cardano ecosystem. He had said:

    Today I wrote a letter to a president, found a million users to bring onto #Cardano, and had a damned good cup of coffee. It's only midday, looking forwards to the afternoon. 

    In a recent interview, O’Connor mentioned the up-and-coming Alonzo smart contract rollout and how the new deal will make use of this feature. He went on to say that this particularly relates to microloans and collateralized loans.

    Open finance relates to the use of open APIs enabling third-party developers to build applications and services around a financial framework. O’Connor touched on a common belief about the mass adoption of blockchain technology that the tipping point will come when people do not even know they are using it. He said:

    A year down the line, you not even realize it, but Cardano could be the back-end financial rails for these huge businesses, and the customer won’t even know.

    Commenting on the new Africa deal, O’Connor revealed that it is still early days, with the practical side of the deal in the research phase.

    A lot of my deal flow is around trying to make sure we that we understand these setters and these industries by working with top-tier marque partners who we can do a pilot with, learn the ropes, learn what’s missing from the Cardano solution at the moment and bake it in.

    Cardano Price Is Expected To Reach These Levels

    The Cardano price will again retest the $1.16 support wall. A further break will take ADA to the $1.10 line.

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