Cardano Technical Analysis: ADA Retreats From $1.60 Level
Daily Cardano ADA Price Analysis
- The Cardano price is trending in an upwards channel formation.
- The RSI is hovering at the edge of the overbought zone.
Over the last two days, the Cardano price jumped from $1.42 to $1.55, entering the $1.50 psychological level. ADA touched the $1.60 psychological level and dropped to $1.55. The relative strength index (RSI) is on the verge of being
Cardano Price In Upward Channel
Between July 21 and August 7, the Cardano price jumped from $1.05 to $1.48. During this jump, ADA managed to:
- Flip the 20-day, 50-day, and 200-day SMAs from resistance to support.
- Reverse the MACD from red to green.
Due to this jump, the relative strength index (RSI) crept into the overbought zone, which incited an immediate bearish correction on August 8 wherein ADA dropped to $1.42. However, since then, the buyers have taken back control of the Cardano price.
Image: ADA/USD daily
The Cardano price faces a massive resistance at $1.60. Previously, at this level, more than 68,300 addresses had purchased nearly ~950 million ADA tokens.
Alonzo Purple Gives Cardano Its First-Ever Smart Contracts
IOHK, the firm behind Cardano, recently announced that the Alonzo Purple testnet is up and running. Following the first two Alonzo updates, dubbed Blue and White, the Alonzo Purple update commences as the first fully public Cardano testnet to support smart contracts.
The development team took to Twitter to say:
"This is an exciting and important next step in the #Alonzo journey. In fact, the #Cardano journey. With the support of our OG community testers on the Blue & White phases, #AlonzoPurple will be the first fully public Cardano testnet to support #smartcontracts."
As the upgrade introduces smart contract functionality to Cardano, the developer team proceeds with the systematic onboarding of crypto exchanges.
“We want to ensure as many exchanges as possible are ‘[Alonzo hard-fork-ready]’ when we hard fork the network, to ensure that their customers maintain uninterrupted deposit/withdrawal access to their ADA and do not have to wait for this to be sorted out afterwards."
The Cardano team plans to launch full smart contract compatibility in the coming weeks. But, following the initial onboarding phase, IOHK will hard fork the network and open Alonzo Purple testnet to any developer who wishes to join.
Cardano is still on schedule for the HFC event announcement, planned for August 12-13, said Hoskinson, who continues with regular updates about the rollout progress as the developer team prepares for the “huge wave of smart contracts” that is going to hit the network soon.
Cardano Price Is Expected To Reach These Levels
If the buyers do manage to push the Cardano price above the $1.55 resistance barrier, ADA should reach $1.60. However, this will make the asset overpriced, which will incite a bearish correction.