Cardano Technical Analysis: ADA Hurries Towards $0.70 Level Following Mary Upgrade
Daily Cardano ADA Price Analysis
- Bulls have been in control of Cardano price for five straight days.
- IntoTheBlock shows a lack of resistance levels upfront.
The bulls have been in control of Cardano price for five straight days, as ADA went up from $0.44 to $0.687. That’s a $0.257 increase in total valuation. Let’s take a closer look with technical analysis.
Cardano Price Faces Repeated Rejections At Key Level
On February 1, the Cardano price found support at the 20-day SMA and has since risen from $0.34 to $0.687, more than doubling its price. As of now, ADA presently faces a strong barrier at $0.71 which has repeatedly kept it down. However, do note that the relative strength index (RSI) is hovering in the overbought zone. This could potentially trigger a bearish correction.
Image: ADA/USD daily
IntoTheBlock’s IOMAP shows a lack of strong resistance upfront. The price is sitting on top of a strong support wall at $0.67. Previously, at this level, 28,000 addresses had purchased 2.8b ADA tokens. This line is strong enough to absorb a lot of selling pressure.
The MACD in the 4-hour Cardan price chart shows increasing bearish momentum. This, along with the RSI in the daily chart, could hint at an upcoming bearish correction.
Image: ADA/USD 4-hour
Cardano Price Boosts After Smart Contract Implementation
The price of Cardano’s native token, ADA, has surged by over 100% since the beginning of this month as excitement around the addition of smart contract functionality is driving the token’s price action.
According to Cointelegraph Markets and TradingView, the asset’s upward price movement from $0.35 on February 1 to its current price levels has helped Cardano (ADA) become the fourth-largest cryptocurrency by market cap.
The first surge started after the Cardano team upgraded its delegation interface on Daedalus. Another significant uptick in buying volume started on February 4 after Cardano announced the launch of a smart contract on its testnet.
IOHK, the company behind Cardano, said:
“MISSION ACCOMPLISHED: delighted to report that since c.10 minutes ago, the #Cardano Testnet is officially in the multi-asset era. At 20:20:16 UTC, we successfully forked & applied the #Goguen 'Mary' native token upgrade. Next stop mainnet, by the end of the month? @cardano”
Data from TheTIE reveals that Cardano’s social media mentions have been increasing since the beginning of 2021. Additionally, the company’s recent announcements have been followed by surges in price and tweet volume.
The amount of ADA staked on the network continued to rise throughout January and now record 22.6 billion tokens staked (72% of the total supply). There are currently 1,602 active validators on the network serving 176,696 total delegators.
Once smart contract functionality is brought to Cardano’s mainnet, the platform will successfully host a range of dApps, including decentralized finance (DeFi) protocols. While projects like Cardano (equipped to stake) are steadily attracting more attention, the Ethereum network is still struggling with heavy congestion and high gas fees.
Cardano Price Is Expected To Reach These Levels
The Cardano price will probably retest the $0.71 resistance barrier. However, ADA will likely face a correction soon, as indicated by the RSI. The $0.67 support should stop any drastic downflow.