Cardano Technical Analysis: The 20-day SMA Has Prevented Further Downflow, Mike Novogratz Shows Interest

Last Updated July 23rd 2021
2 Min Read

Daily Cardano ADA Price Analysis
  • The Bollinger band has started contracting in the daily chart, showing decreasing price volatility.
  • The parabolic SAR in the 4-hour timeframe shows that current market sentiment is positive.

Between February 28 and March 4, the Cardano price dropped from $1.32 to $1.11. After trending horizontally for a bit before jumping up to $1.12. However, the bears then stepped back into the market and dropped it to $1.17.

Cardano Price Volatility About To Decrease

Looking at the daily Cardano price chart, there are two negative signs that you need to keep n mind:

  1. The Bollinger band has started contracting, which shows that the market volatility is decreasing.
  2. The MACD shows increasing bearish market momentum.

ada/usd daily chart 031121

Image: ADA/USD daily

On the downside, there is a healthy support wall at $1.15. Previously, at this level, 96,000 addresses had purchased over 4 billion ADA tokens. This support zone is robust enough to absorb a lot of selling pressure.

ada/usd volume chart 031121

Image: IntoTheBlock

Billionaire Mike Novogratz Takes Interest in Cardano (ADA) Amid Price Rally

Popular investor Mike Novogratz has recently displayed an interest in Cardano’s ADA amid its ongoing price rally. He took to Twitter to ask if anyone could make a “rel bull case for ADA,” whether anyone is building on it or using it. He also asked why ADA’s market capitalization is as high as it currently is. 

“Last question before I go shower, can anyone make a real bull case for $ADA?    Does anyone build on it? Use it?  Why is the market cap so high?  Should it be a funding asset?  It’s one of the few cryptos I haven’t traded in my life.”

Cardano founder Charles Hoskinson responded to Novogratz’s tweet saying he would be happy to chat with the investor. In 2018, Novogratz founded Galaxy Digital - a digital asset merchant bank that offers multiple crypto services. He was also one of the first Wall Street analysts to embrace the cryptocurrency space. 

Novogratz’s questions about ADA come when retail interest for the cryptocurrency has hit a new all-time high amid an ongoing price rally. ADA’s price has moved up over 500% year-to-date. Cardano’s long-awaited “Mary” protocol upgrade went live earlier this month. The upgrade enhanced the crypto asset’s security while enabling multi-asset compatibility in the network and the development of decentralized applications.

Cardano Price Is Expected To Reach These Levels

The Cardano price will likely keep hovering between the 20-day SMA and the $1.24 line.