Cardano Technical Analysis: ADA Finds Crucial Support At $1.05
Daily Cardano ADA Price Analysis
- The Cardano price volatility is on the rise.
- The nearest resistance is at the 200-day SMA.
Prior to this Wednesday, the Cardano price has been on a continuous slide. Between July 5 and July 20, ADA fell from $1.45 to $1.05 – dropping by almost $0.40. During this drop, Cardano flipped the 20-day and 200-day SMAs from support to resistance. Along with that, ADA also dropped below the Bollinger Band.
$1.05 Support Rescues Cardano Price
Due to the aforementioned drop, the MACD flipped from green to red. The Bollinger Band has also been expanding to indicate increasing volatility, so a further drop was expected. However, the $1.05 support line has prevented a further downtrend.
Image: ADA/USD daily
The Cardano price has the nearest resistance at $1.05. Previously, at this level, over 24,500 addresses had purchased nearly 195 million ADA tokens.
Cardano (ADA) Native Assets Will Be Supported On Bitrue
Singapore-based crypto exchange Bitrue recently announced that it aims to become the first exchange to offer support for native assets on the Cardano blockchain. The firm plans to do so by the end of July.
Unlike Ethereum, which requires smart contracts for the creation of user-defined tokens, Cardano offers native support for user-defined tokens. The platform introduced this feature with the “Mary” protocol upgrade, which went live on Cardano’s mainnet on March 1.
As IOHK (the firm behind Cardano) explained earlier, “native support grants distinct advantages for developers as there is no need to create smart contracts to handle custom token creation or transactions." This means that “the accounting ledger will track the ownership and transfer of assets instead, removing extra complexity and potential for manual errors, while ensuring significant cost efficiency.”
Bitrue recently said that the first user-defined Cardano token to be supported would be $OCC, the utility token of OccamFi, which is “a suite of DeFi solutions tailored for Cardano.” This support will be added by Bitrue “before the end of July 2021.”
According to the OccamFi team, $OCC token holders may “participate in liquidity mining through OccamRazer pools” and stake $OCC tokens to gain access to private OccamRazer pools. Bitrue added:
“Users will be able to deposit and withdraw both the ERC20 and Cardano forms of OCC to Bitrue as they wish, and trade them in a unified market for OCC. In this way Bitrue will also be acting as the pioneering location for users worldwide to trade for and hold a Cardano native asset.“
Cardano Price Is Expected To Reach These Levels
The buyers will need to push the Cardano price towards the 200-day SMA, having bounced up from the $1.05 support wall.