Cardano Technical Analysis: ADA In The Midst Of Bearish Correction
Daily Cardano ADA Price Analysis
- The $0.82 support wall has repeatedly stopped Cardano price from going down.
- ADA falls for five straight days.
The Cardano price faced massive rejection at the $0.94 resistance barrier and has since dropped to $0.84 over the last five days. ADA has repeatedly tried to break below the $0.82 support wall, but the latter has managed to stay strong.
Cardano On The Verge Of Flashing Major Sell Signs
Over the last five days, the Cardano price has dipped from $0.94, to $0.84, breaking below key support levels. There are two strong sell signs that we want you to ideally focus on.
- Firstly, it has flipped the $0.88 line from support to resistance, Previously at this level, 30,000 addresses had purchased 2.75 ADA tokens.
- The parabolic SAR in the daily chart has reversed from bullish to bearish, which shows that overall market sentiment is negative.
Image: ADA/USD daily
As per the IOMAP from IntoTheBlock, there is a moderate support wall at the $0.83. If the Cardano price breaks below it, it could potentially drop to the 20-day SMA ($0.60).
Looking at the 4-hour Cardano price chart, we can see increasing bearish momentum. The 20-bar SMA has provided consistent resistance which has prevented ADA from goi going any higher.
Image: ADA/USD 4-hour
Cardano (ADA) Announces Upgrades To Daedalus Wallet And Project Catalyst
IOHK (the company behind Cardano) has recently revealed details about the Project Catalyst Fund4 - “the most accessible & ambitious round yet.” Project Catalyst is a unique community-driven initiative launched to promote the growth of the Cardano ecosystem. The company noted that the number of enthusiasts involved in the project is surging by 10% weekly.
“Project Catalyst Fund4 will be our most accessible & ambitious round yet – with $1 million in $ADA available for building on #Cardano and full voting integration in #Daedalus to bring more of the community onboard than ever before.”
Starting from Fund4, voting for the most valuable projects will be fully integrated with the Daedalus wallet. The minimum amount of ADA for a voter is fixed at 3,000 ADA to prevent the system from congesting with spam messages.
Additionally, the net sum of funding has surged to $1,000,000 in ADA tokens. 20% of Project Catalyst treasury funds will be distributed among referrers, community advisers and participating voters.
As reported earlier, IOHK recently revealed that the first three stages (funds) of Cardano's Project Catalyst allowed it to emerge as the world's largest decentralized organization. Cardano developers also released the new version of the ADA wallet - Daedalus Flight. The new version supports all of the specifications introduced by the recent Mary hardfork, which aims to pave the way to Goguen's post-Shelley era with smart contracts and dApps.
Cardano Price Is Expected To Reach These Levels
If the Cardano price continues to fall, it may drop to the 20-day SMA ($0.60). As such, the bulls will hope that the $0.80 and $0.70 psychological levels stay strong to prevent downward movement.