Cardano Technical Analysis: ADA On Course To Taking Down 50-day SMA
Daily Cardano ADA Price Analysis
- The Cardano price has flipped 20-day SMA from resistance to support.
- MACD indicates sustained bullish market momentum.
The Cardano price is in the midst of a bullish rally. Since June 23, ADA had jumped from $1.15 to $1.55, flipping the 20-day SMA from resistance to support in the process. Prior to this jump, ADA had crashed from $1.84 to $1.15 between June 4 and June 22. Here is what Cardano needs to do next to continue this rally.
Cardano Price Must Take Down 50-day SMA To Flip Parabolic SAR
Due to this recent rise, the Cardano price, the MACD shows increasing bullish market momentum, so a further rise is in the cards. This Sunday, the buyers managed to remain in control for three straight days. The bulls will need to break past the 50-day SMA to reverse the parabolic SAR from negative to positive and flash yet another bullish signal.
Image: ADA/USD daily
As mentioned above, the Cardano price faces crucial resistance at the 50-day SMA ($1.55). Previously, at this level, over 80,000 addresses had purchased nearly 1.3 billion ADA tokens.
Cardano Catching Wall Street’s Eye?
Grayscale recently announced that it added Cardano to its large-cap fund alongside Bitcoin and Ethereum. The asset is now the third-largest holding in the fund, with a 4.26% allocation. The Grayscale development is a milestone for ADA as it opens up direct access for accredited investors trying to invest in the project. Grayscale had filed for a Cardano Trust back in January 2021.
While the sustainability debate was raging around Bitcoin, one of the possible reasons which caused the market dump, investors were turning their attention to proof-of-stake assets. Notably, Coinshares found that post the 19 Mary crash, Cardano recorded $11 million in capital inflows from institutional assets.
During the same time, Bitcoin’s market saw significant capital outflows of $115 million. It appears that institutions have been taking notice of the project before Grayscale even made its accessibility clear, but Cardano’s upcoming development would possibly push its value even higher.
Cardano recently released its first-ever Plutus smart contract on its Alonzo testnet, and further developments will be taking place in July. Adding the functionality of smart contracts and their eventual implementation would mean that creation of dApps will be possible on the Cardano network.
Wall Street is already flocking into the crypto space, and it wouldn’t be long before they are publically vocal about their allocation on Cardano.
Cardano Price Is Expected To Reach These Levels
The buyers have a very straightforward goal. Flip the 50-day SMA from resistance to support ASAP and reverse the parabolic SAR from negative to positive in the process.