Cardano Technical Analysis: ADA Drops Towards $1 Psychological Level
Daily Cardano ADA Price Analysis
- Cardano price has moderate support walls on the downside.
- Businesses are moving over from Ethereum to Cardano.
From March 1 to March 12, the Cardano price dropped from $1.31 to $1.03, losing nearly $0.28 in its overall valuation. As things stand, ADA is dropping towards the $1 psychological level. Let’s take a closer look with technical analysis.
Cardano Price Drops From $1.10 To $1.02 Over The Last Two Days
On March 10, the Cardano price broke below the 20-day SMA and fell from $1.19 to $1.025. The relative strength index (RSI) was hovering along the overbought zone and is diving towards the underpriced area.
Image: ADA/USD daily
On the down side, there is a lack of strong support levels, with three moderate support walls at $0.96 and the 50-day SMA ($0.88). Previously at $0.96, a little less than 30,000 addresses had purchased around 500 million ADA tokens.
Charles Hoskinson: >100 Companies To Shift From Ethereum To Cardano
In a recent Bloomberg interview, Charles Hoskinson, the CEO of IOHK (the firm behind Cardano) recently revealed that more than 100 companies are in the process of moving from Ethereum and Cardano.
According to earlier reports, SingularityNET, the AI firm behind social humanoid robot Sophia, was “seriously discussing” migrating to Cardano. However, despite ADA recently becoming the third-largest cryptocurrency, its parent blockchain is often dismissed as vaporware.
Coin Metrics’s Nic Carter pointed out that Cardano doesn’t have a single notable application:
I am not aware of a single popular application deployed on Cardano, nor have I seen any enthusiasm for the platform among developers.
Hoskinson, however, believes that Cardano is infinitely more efficient than the current leader. He said:
You can take your DeFi and you can run it on my system for 1/100 to 1/1000 of the cost.
The CEO also criticized Uniswap (the largest DEX) and CryptoKitties, comparing them to Beanie Babies.
I don’t care about Uniswap and CryptoKitties and other things. It’s a bubble, and it comes and it goes, like Pet Rocks and Beanie Babies.
While Cardano is still far from becoming the most popular blockchain, Hoskinson appears to have achieved celebrity status. He claimed that he’s now getting recognized at airports and receiving fan mails. He said:
That’s the most surreal part of all of it.
Cardano Price Is Expected To Reach These Levels
Cardano price will likely drop to the $1 psychological level. What happens after that will depend on how the buyers and sellers act there.