Cardano Technical Analysis: ADA Creeps Below 50-day SMA
Daily Cardano ADA Price Analysis
- Cardano price shows increasing bearish market momentum.
- Healthy support for ADA lies at $1.24.
Since May 17, the Cardano price has sunk from $2.30 to $1.45. During this downward surge, ADA had flipped the 20-day SMA from support to resistance. Over the last two days, Cardano has dropped below the $1.50 psychological level. Let’s take a closer look with technical analysis.
Cardano Price Bearish Sentiment On The Rise
Today, the Cardano price has dropped below the 50-day SMA and sank below the $1.50 psychological level. The MACD shows increasing bearish momentum, so a further drop could be in the cards. The relative strength index is nowhere near the oversold territory so expect ADA to drop to the $1.24 support line.
Image: ADA/USD daily
Looking at the IOMAP, we can see that the most robust line of support is down at $1.24. Previously, at this level, >105,000 addresses had purchased close to 1.75 billion ADA tokens.
Cardano Close to Launching Smart Contracts
In a recent interview with Crypto Briefing, Cardano creator Charles Hoskinson outlined the company's plans to host oracles, stablecoins, DEXs, and NFT marketplaces on the upcoming Plutus smart contract platform.
Hoskinson said that the team is soon launching the Pioneer Testnet and run that for two months and feature freeze by the end of June. He noted that it would take about four to six weeks to "do the hard fork and turn on smart contracts for the mainnet." Cardano has also started the Plutus Pioneer Program, where it is training more than 1,000 developers who expressed interest in writing decentralized applications (dApps) on Cardano.
The CEO also mentioned that Cardano is soon going to support NFT marketplaces, DEXs, stablecoins, and oracles, etc. According to Hoskinson, it is "better, faster, cheaper, and more predictable on our system versus Ethereum." Another advantage that Cardano has over Ethereum is a built-in decentralized VC–Catalyst, which has over $250 million available for funding dApps. He added that the firm plans to fund 100 to 200 ventures in the next three months. These include new dApps as well as migrations to Cardano.
Commenting on the projects jumping to Cardano from Ethereum, Hoskinson said that the team is finalizing arrangements with two dozen different dApps or platforms to migrate over the next 180 days.
Projects usually want to ask questions like whether they can have a testnet they can run on. Those will start when Alonzo Testnet comes over. Usually, the conversation is not explicit migration from Ethereum to Cardano. Instead, what we have seen industry-wide is that projects want to become multi-chain. Having said that, some have already expressed interest in fully migrating to Cardano. SingularityNet is one such migration.
Commenting on Cardano's decentralization levels, the CEO said that in Bitcoin, ten major mining operations produce more than 50% of the blocks. In comparison, Cardano has over 2,000 stake pools, and about 200 to 400 of the stake pools produce 80% of the blocks. So Cardano is about 20 to 40 times more decentralized in terms of block production.
The system is elastic and is designed to get more stake pools over time. Eventually, we will have tens of thousands of state pool operators.
Cardano Price Is Expected To Reach These Levels
The Cardano price will likely continue to crash towards the $1.24 support wall. If this level doesn’t hold, then expect a crash to the $1 psychological level.