Cardano Technical Analysis: ADA Must Conquer Crucial Resistance At $2.06

Daily Cardano ADA Price Analysis

2 Min Read
Last Updated July 23rd 2021
  • Cardano price reverses 20-day and 50-day SMAs from resistance to support.
  • MACD has reversed from bearish to bullish.
  • Over the last five days, the Cardano price has had four bullish sessions out of the last five, during which it jumped from $1.40 to $1.82. Prior to this, ADA had crashed from 20-day SMA to $1.40 between May 27 and May 29.

    Cardano Price Creeps Below 20-day SMA

    Over the last four days, the Cardano price has flipped the 20-day and 50-day SMAs from resistance to support. Due to this bullish jump, the market momentum in the MACD has flipped from red to green. Cardano now needs to overcome the $2.06 resistance barriers to flip the parabolic SAR from negative to positive.

    Image: ADA/USD daily

    ada/usd daily chart 060421

    Looking at the IOMAP, we can see that Cardano price must overcome the $2.05 resistance barrier. Previously, at this level, almost 22,500 addresses had purchased over 215 million ADA tokens.

    Image: IntoTheBlock

    ada/usd volume chart 060421

    Cardano-Nervos Cross-Chain Bridge Is Now Live

    Nervos, a public blockchain platform, and IOHK, the firm behind Cardano, recently announced a cross-chain "bridge" to connect the two networks.

    This is Cardano’s first cross-chain bridge, interconnecting two ecosystems worth billions of dollars. The bridge promotes Nervos and Cardano’s shared purpose of finding the blockchain industry’s "Bluetooth moment," where users have a seamless experience while using blockchain networks, regardless of which chain they are using.

    The bridge will allow users to interchangeably transact with Nervos and Cardano’s native currencies (CKB and ADA, respectively) and create their tokens across both blockchains, done through a technique called token wrapping. It will also enable developers from both chains to access services and features to expand their decentralized applications (dApps) and user bases.

    With the bridge, developers using the Nervos platform will have access to IOHK’s industry-leading token solution for Cardano and DeFi apps built on top of the Plutus smart contract in addition to other features deployed through sidechains and state channels on Cardano.

    The bridge also enables users to create assets that enjoy all the operational benefits of Cardano’s native currency, ADA, allowing projects to access the blockchain’s market-leading levels of speed and security, with no prohibitive costs.

    Cardano Price Is Expected To Reach These Levels

    As things stand, the Cardano price will need to take down the resistance at $2.06. If the buyers manage to do so, they will reverse the parabolic SAR from negative to positive.

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