Cardano Technical Analysis: Bears Step In To Correct ADA

Last Updated July 23rd 2021
3 Min Read

Daily Cardano ADA Price Analysis
  • The MACD has reversed from bearish to bullish.
  • Cardano price in the 4-hour chart crashed from $1.45 to $1.26 in one candlestick.

Over the last two days, the Cardano price rose from $1.02 to $1.38, gaining $0.36 in its overall valuation. This rise in price happened because of ADA’s Coinbase Pro and Bloomberg Terminal listing. However, the bears soon stepped back in to correct the price.

Cardano Price Kept In Check By Bollinger Band

Over the last two days, the market momentum has reversed from bearish to bullish as seen in the MACD. However, ADA has met resistance at the upper Bollinger band, which has pushed the Cardano price back down to $1.28, nearly negating yesterday’s gains.

ada/usd daily chart 031921

Image: ADA/USD daily

On the downside, there is a healthy support around the $1.15 zone, wherein, 130,500 addresses had purchased almost 3.78 billion ADA tokens.

ada/usd volume chart 031921

Image: IntoTheBlock

The 4-hour Cardano price shows that in one single session, ADA dropped from $1.45 to $1.26. In the same time, the relative strength index (RSI) has dropped from the overbought zone to the neutral territory.

ada/usd 4-hour chart 031921

Image: ADA/USD 4-hour

Hoskinson Threatens YouTube And Twitter With Lawsuits Over Crypto Scams

Charles Hoskinson, the CEO of IOHK (the firm behind Cardano), recently blamed social media platforms like Twitter and YouTube for inaction regarding crypto giveaway scams. 

Crypto giveaway scams have risen in number over the past several years. Typically, bad actors impersonate a famous individual or a company on social media. Then, they ask followers/viewers to send a certain amount of a particular cryptocurrency to their address, promising to double it.

In a recent video, Hoskinson highlighted the dangers these scams present for victims and the impersonated party. The CEO noted that several scam victims have contacted him and IOHK repeatedly to ask for an explanation and reimbursement. In some extreme cases, victims have sent him pictures of his pets, house, or parents and threatened to hurt them if he doesn’t compensate for their losses, Hoskinson added.

Hoskinson believes that getting his profile verified (adding a blue tick next to his name) can enhance his legitimacy and make fake profiles less trustworthy. However, social media platforms have refused to do so. He said that IOHK would hire a former FBI agent or lawyer whose sole purpose would be to fight such scams involving Cardano and ADA.

Additionally, Hoskinson promised that his team is going to conduct an investigation, which could result in a lawsuit if they discover that firms like Twitter and YouTube are financially benefiting from the scams in any way.

If the potential lawsuit fails, Hoskinson is prepared to leave some social media platforms. He said: 

Maybe the solution for me is to simply leave all social media, to begin with. And then we can broadcast through our official accounts that every single Charles Hoskinson Facebook page, Instagram page, Twitter feed, YouTube channel is simply fake. Maybe that’s the solution that we are forced to do – self de-platforming.

Cardano Price Is Expected To Reach These Levels

The Cardano price may drop till the 20-day SMA ($1.18) and will then bounce back up.

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