Cardano Technical Analysis: ADA Trends In Narrow $0.17 Channel
Daily Cardano ADA Price Analysis
- Cardano price is hovering between $1.68 and $1.85 lines
- MACD shows sustained bullish market momentum.
Between April 26 and May 8, the Cardano price jumped from $1.09 to $1.77. During this jump, the Bollinger Band had started expanding, to indicate this increasing price volatility. However, since then, ADA has been hovering horizontally.
Cardano Price Stuck Between Strong Levels
The Cardano price has been trending horizontally around $1.70 stuck between the $1.85 resistance and the $1.68 support. Due to this movement, ADA has managed to move back into the Bollinger Band, indicating that it is no longer overpriced. The MACD shows sustained bullish market momentum, which tells us that the current sentiment is positive. However, do note that the Band has started narrowing, which shows decreasing price volatility.
Image: ADA/USD daily
Cardano price has a robust support barrier at $1.70. Previously, at this level, nearly ~92,000 addresses had purchased a little over 2.6 billion ADA tokens.
Cardano To Focus On Decentralized Stake Pool Operator (SPO) Launch
Cardano is planning to launch the decentralization of the network’s stake pool operator (SPO). This comes just weeks after the firm gave the community complete control of block production. IOHK (the firm behind Cardano) announced the SPO development. The company stated that SPO decentralization aims to set up a reliable and effective connection between distributed nodes.
IOHK added that before the decentralization of the SPO, there is a need to improve the Cardano network software. The first phase involved activating the peer-to-peer (P2P) governor and the deployment of the connection manager.
Currently, the Cardano team is testing the engineering testnet before deploying a semi-public P2P testnet for a selected class of SPOs. Furthermore, before the decentralization process began, the SPOs have been operating on relay nodes globally to generate their configuration for linking with peers.
Upon achieving complete decentralization, SPO will also heighten efficiency to support automatic node communication without relay nodes. IOHK said:
To provide better efficiency, it is essential to enable automated node communication without reliance on IO-run relay nodes. Thus, the networking team is now deploying the automated P2P code, which will allow pool operators to create and run a more decentralized network.
A month ago, Cardano announced that block production had attained 100% decentralization. According to IOHK, decentralization was gradual, and it is the first step of creating an independent protocol-free from central entities.
Cardano Price Is Expected To Reach These Levels
The Cardano price needs to overcome the $1.86 resistance barrier for it to reach the $2 psychological level for the first time.