Cardano Technical Analysis: ADA Has Flipped The Parabolic SAR From Bullish To Bearish
Daily Cardano ADA Price Analysis
- The RSI is trending horizontally along 76.
- The 4-hour Cardano price has flipped the 50-bar SMA from support to resistance.
Between February 11 and February 14, the Cardano price dropped from $0.94 to $0.84. Since then, the price managed to recover and is presently trending around the $0.87 mark.
Current Market Sentiment For Cardano Price Is Bearish
Prior to the bearish correction, the RSI was trending around 90, as the underlying asset was extremely overvalued. Since then, the RSI has dipped 76, where it is currently trending. During this drop, the parabolic SAR has flipped from bullish to bearish, which shows that the overall market sentiment is currently negative.
Image: ADA/USD daliy
The buyers have a stiff resistance at $0.88. Previously, at this level, 67,500 addresses had purchased a whopping 4.25 billion ADA tokens. This is a very strong level that can absorb a lot of buying pressure.
Looking at the 4-hour Cardano price chart, there are two very negative signs:
- ADA has flipped the 50-bar SMA from support to resistance.
- The MACD shows sustained bearish momentum.
Image: ADA/USD 4-hour
Cardano Founder: ETH First-Mover Advantage ‘Means Nothing’
Charles Hoskinson, the CEO of IOHK (the firm behind Cardano) recently said that Ethereum’s first-mover advantage is not a threat to Cardano. In a recent YouTube video, Hoskinson noted that in 2020, only 31% of all new dApps deployed were on Ethereum.
In his opinion, Ethereum’s first-mover advantage in capturing a monopoly “means nothing” in the crypto industry. Hoskinson’s comments appear to come as a response to Anthony Sassono, who earlier claimed that when blockchains position themselves as “ETH killers,” they are only further bolstering Ethereum’s network effects. Sassono is the VP of BMO Capital Markets.
Despite record-high gas fees, Ethereum remains very popular among users in the space. Ethereum co-founder Vitalik Buterin recently shared a proposal outlining the much-needed upgrades to the network that are underway.
Meanwhile, decentralized finance (DeFi) applications are still yet to take shape on the Cardano blockchain. After a few successful Hard Fork Combinator (HFC) events, Cardano’s network has added numerous functionalities that intend to make the network more attractive to DeFi developers.
We have a lot of great news coming. There’s new markets opening up, tonnes of progress on the smart contract side and tokens are coming.
The IOHK exec concluded by saying that Cardano’s technology is “significantly better” than all of the other blockchains because they took the time to develop the right code for the protocol.
Cardano Price Is Expected Reach These Levels
If the Cardano price manages to break above the $88 resistance barrier, ADA will easily reach the $0.90 psychological line.