Cardano Technical Analysis: ADA On The Verge Of Break Past 20-day SMA

Daily Cardano ADA Price Analysis

3 Min Read
Last Updated July 23rd 2021
  • Bulls in control of Cardano price for two straight days.
  • Healthy support for ADA lies at $1.55.
  • Over the last two days, the buyers have been in control of the Cardano price as ADA jumped from $1.39 to $1.67. Prior to that, ADA had three straight bearish sessions wherein it fell from $1.77 to $1.39. Let’s take a closer look with technical analysis.

    Cardano Price Must Overcome 20-day SMA Resistance

    This Sunday, the Cardano price jumped from $1.40 to $1.64 and reversed the 50-day SMA from resistance to support. While the MACD shows sustained bearish momentum, the fact is that ADA still has some legs to run. The relative strength index is just hovering along the neutral zone, which indicates that ADA still has room to grow before it gets overpriced.

    Image: ADA/USD daily

    ada/usd daily chart 060121

    Looking at the IOMAP, we can see that Cardano price faces resistance at the 20-day SMA. Previously, at this level, almost 125,000 addresses had purchased over 1.75 billion ADA tokes.

    Image: IntoTheBlock

    ada/usd volume chart 060121

    Cardano CEO: We will process billions of transactions yearly

    In a recent YouTube video, Cardano creator Charles Hoskinson shared his thoughts on the current situation in the cryptocurrency market. 

    Hoskinson noted that those in the space are building something better. The distributions in the markets and volatility in them represent that, he added.

    We’re gonna get it done as an industry. We’re all neck-and-neck, building those amazing engines that are going to process billions of transactions every year, if not more, containing collectively trillions of dollars of value. We’re future-proofing programmable finance, and this financial operating system is going to be social, and it’s going to be institutional, and it’s going to be Fortune 500. And it’s gonna run nation-states at some point. It’s inevitable. This is a reality.

    Hoskinson said that the cryptocurrency market had seen an influx of money in recent months. People who believe in the technology, traders looking to make a quick buck, and those who came out of frustration and anger fueled by the corruption, hyperinflation, and nepotism created by the financial systems, banks, and policymakers are involved in the market, he added.

    According to Hoskinson, altcoins and meme coins have increased their share of the cryptocurrency market dominance in 2021, which has seen Bitcoin lose its established market dominance. The exec shared his reflections on the influence of Bitcoin on the market. In his opinion, the influence was more apparent during the 2017/2018 cycle, as opposed to 2020/2021.

    He added that in 2020/2021, it has been interesting to note that this is the first time a significant counter-cyclic movement was noticed where both Bitcoin dominance has fallen tremendously going down to 43% and that the institutional preferences have not been unilaterally Bitcoin.

    Cardano has seen unparalleled growth in recent months, attaining 100% decentralization for block production in addition to signing agreements with the Ethiopian government regarding blockchains capable of tracking student performance.

    Cardano Price Is Expected To Reach These Levels

    As things stand, the Cardano price will need to take down the resistance at the 20-day SMA ($1.72). If they manage to do that, ADA will reach the $2 psychological level. However, if they fail to do so, ADA could drop to the $1.55 support wall.

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