Cardano Technical Analysis: ADA Fails To Break Above 20-day SMA
Daily Cardano ADA Price Analysis
- The Cardano price drops after five straight bullish days.
- The MACD has reversed from bearish to bullish.
The Cardano price crashed by $0.40, having dropped from $1.45 to $1.05 between July 5 and July 20. During this drop, ADA managed to:
- Flip the 20-day and 200-day SMAs from support to resistance.
- Reverse the MACD from green to red.
Let’s see how the buyers took control following this drop.
Cardano Price Faces Resistance At 20-day SMA
Between July 21 and July 24, the Cardano price had jumped from $1.05 to $1.24 – flipping the 200-day SMA from resistance to support. However, the 20-day SMA has prevented ADA from jumping further up. Regardless, due to this rise, Cardano managed to flip MACD from bearish to bullish.
Image: ADA/USD daily
The Cardano price has the nearest resistance at the 20-day SMA ($1.25). Previously, at this level, over 135,000 addresses had purchased nearly 2.4 billion ADA tokens.
Cardano’s New Upgrade Makes It Compatible With Browsers
Hoskinson described this as a major update that’s part of the network’s progress to roll out smart contracts and compete with networks, such as Ethereum and the Binance Smart Chain. He added the team would keep optimizing the application to improve Plutus smart contracts’ compatibility with web browsers.
The team behind the project is also looking to implement the Mithril protocol, which is critical to launching lightweight clients of Cardano. These lightweight clients will allow users to verify transactions on a device without downloading the entire blockchain.
IOHK (the firm behind Cardano) announced the launch of Alonzo Blue 2.0’s testnet for the cryptocurrency’s blockchain last month. Alonzo Blue is part of a series of upgrades that will bring smart contracts to the Cardano network and allow developers to create decentralized applications on it, bringing the decentralized finance ecosystem to ADA.
The Alonzo hard fork is part of the network’s “Goguen” era, named after Joseph Goguen, an American professor of computer science from the University of California and the University of Oxford. The Goguen era comes after the Shelley phase, in which Cardano became a decentralized blockchain and community members became validators.
Alonzo will roll out in three phases: blue, white, and purple. Each opens up more to the public until the upgrade’s full integration is complete, with the process taking 90 days.
Cardano Price Is Expected To Reach These Levels
Crossing the 20-day SMA will cause the parabolic SAR to reverse from negative to positive. The Cardano price will need to carry on with this momentum and touch the 50-day SMA ($1.40).