Cardano Technical Analysis: ADA Market Sentiment Remains Negative
Daily Cardano ADA Price Analysis
- Cardano price daily chart fires off multiple sell signals.
- ADA has found healthy support at $1.09.
On March 18, the Cardano price reached an intra-month high of $1.50 before it dropped to $1.13. During this crash, ADA managed to flash three separate sell signals:
- Flipping the 20-day SMA from support to resistance.
- The MACD shows increasing bearish momentum.
- Parabolic SAR has flipped from positive to negative.
Cardano Price Finds Much Needed Support At $1.09
This downward slide for Cardano price has met strong support at the $1.09 line. It seems that the bulls bounced up from this support and is sandwiched between this line and the 20-day SMA.
Image: ADA/USD daily
Speaking of which, the immediate resistance is at the 20-day SMA ($1.15), wherein 142,000 addresses had previously purchased 4.34 billion ADA tokens.
Cardano Founder Talks About Ethereum dApps
Charles Hoskinson, the CEO of IOHK (the firm behind Cardano), recently shared his thoughts on dApps and Cardano’s future. In a YouTube video, Hoskinson said that there are 3800 dApps on the Ethereum network. However, only a few hundred have handled financial transactions. He noted the rest are ghost chains.
The CEO said that in 2020, only 31% of newly developed dApps were built on Ethereum, in part due to its high gas fees. Commenting on the sustainability of decentralized applications, he said:
If the goal is just random speculation, Ponzi schemes, and no real use and utility and no ability to scale millions and billions of people, I want nothing to do with that if the goal is to build things that people use long term and have sustainable economics, okay sign me up.
Hoskinson also said that we are still far from creating dApps that could make a difference in the crypto space. He added the issue of operating with high gas fees has to get addressed.
The Cardano founder noted that the inexistence of dApps in Bitcoin indicates there is no correlation between these applications and the token pricing. He highlighted Cardano’s progress, stating that the network currently has similar economic value to Ethereum despite having a market capitalization five times smaller than the latter.
Charles Hoskinson said Cardano is still under development with three phases: metadata, tokens and smart contract platforms such as Plutus. Cardano devs are working to create side-chains and converters to transfer tokens from the Ethereum network to Cardano seamlessly.
Cardano Price Is Expected To Reach These Levels
Cardano price will likely keep trending horizontally around $1.10.