Cardano Technical Analysis: ADA Jumpers Up After Flashing Buy Signal

Daily Cardano ADA Price Analysis

Last Updated July 23rd 2021
3 Min Read
  • Cardano price faces major resistance at $1.60
  • ADA has immediate resistance at 20-day and 50-day SMAs.
  • Between June 4 and June 11, the Cardano price crashed from $1.85 to $1.43 and flipped the 20-day and 50-day SMAs from support to resistance. Prior to this crash, ADA jumped up from $1.43 to $1.84 between May 30 to June 3.

    Cardano Price Falls After Encountering Resistance At $1.60

    The buyers tried to make a mini resurgence after the Cardano price flashed the buy signal in the form of a red-nine candlestick and push it up to $1.58 till June 14. On the upside, Cardano faces a major resistance wall at $1.60 which sees a confluence of 20-day and 50-day SMAs. The MACD indicates bearish market momentum s a further drop is expected.

    Image: ADA/USD daily

    ADA/USD daily chart 061721

    As per the IOMAP, the Cardano price has a healthy support wall at $1.50. Previously, at this level, almost 83,000 addresses had purchased over 1.25 billion ADA tokens.

    Image: IntoTheBlock

    ADA/USD volume chart 061721

    Cardano surpasses Coinbase, Roblox in market cap

    A Finbold report indicated that Cardano (ADA) recently recorded a market capitalization of $50.42 billion, higher than Coinbase $49.43 billion. However, the ADA market cap slightly trailed Vodafone by $0.94 billion among the selected 11 publicly traded assets. Online gaming company Roblox’s market cap of $49.05 billion also fell behind Cardano. 

    Notably, ADA and the selected assets are from different backgrounds. Besides Coinbase, ADA is a relatively new asset. However, the market cap figure highlighted the cryptocurrency’s tremendous journey since launching. Although ADA has a significant market compared to the selected companies, some institutions have an upper as they manage assets equivalent to trillions of dollars. Notably, like traditional stocks, ADA holders can benefit when the asset’s price surges. 

    ADA’s market capitalization results from the recent cryptocurrency bull run and the ongoing activity on the network. On a year-to-date basis, ADA has surged by over 750%. ADA’s ability to match up to traditional asset classes in the market cap also relates to the bullish momentum throughout the year. 

    The cryptocurrency has attracted attention and inflow of capital from investors seeking to profit. The growth has resulted in several millionaire investors. As per earlier reports, between January 1 and May 17, 2021, wallets holding ADA with a value of at least $1 million surged 1,231% from 504 to 6,710.

    Furthermore, the Cardano network development continues to boost investor confidence in the digital currency. For instance, the Cardano blockchain recently attained 100% decentralization in block production, a notable milestone in the crypto community.

    Top Trader Unveils Giant 2021 Targets for ADA

    Pseudonymous crypto trader, known as Capo, revealed their giant targets for Cardano (ADA), Bitcoin (BTC), and Ether (ETH). They took to Twitter to say:

    $BTC > $100k, $ETH > $10k and $ADA > $10 are still very likely this year.

    Based on current prices, Capo’s predictions imply a 156% rally for BTC, a 302% increase for Ethereum, and a 557% surge for Cardano. The trader predicted that the Bitcoin Dominance Index, which compares BTC’s market capitalization to the rest of the crypto space, would continue to fall until October. The downtrend suggests that altcoins could be poised to make big moves in the coming months.

    Though altcoins have massively corrected against Bitcoin in the last few weeks, Capo says the pullback offers the chance to buy at lower prices.

    Yes, ALTS/BTC charts look like sh*t right now. But instead of complaining, try looking for opportunities. The best opportunities arise at times like this.

    As for BTC, Capo highlighted that BTC bulls are in control above $42,000 while bears have more influence on the market below $30,000.

    Source: Twitter

    ADA/USD twitter chart 061721

    All in all, Capo is bullish on the crypto markets and expects parabolic rallies into 2022. He said that things would not turn out well for traders who try to short the market.

    Shorters will be destroyed.

    Cardano Price Is Expected To Reach These Levels

    The sellers are currently testing the $1.50 support wall continually. A break below will take the Cardano price to the $1.35 line.

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