Cardano Technical Analysis: Can ADA Push Back Above $1.10 

Daily Cardano ADA Price Analysis

Last Updated January 31st 2022
4 Min Read
  • The Cardano price has registered a gradual increase over the past few sessions and pushed above $1.07 during the current session. 
  • ADA had been quite bearish during the previous week but has managed to stem the drop in price. 

The Cardano price managed to push above $1.07 during the ongoing session, as buyers gradually push the price higher. ADA had registered a significant increase on Wednesday but dropped back on Thursday, falling by over 3% and settling at $1.04. However, the price recovered on Friday, rising by 0.48% and then rising by 1.05% on Saturday, moving to $1.06. The current session sees ADA up by over 1%, as it moved above $1.07. 

Cardano Price Chart Indicates Buyers Looking To Push Price Higher 

The Cardano price was extremely bearish over the previous weekend and had registered a drop of over 11% on Friday, falling to $1.12. The price continued to drop on Saturday, falling by 4.46%, before recovering on Sunday and rising over 5% to end the weekend at $1.12. ADA was back in the red on Monday, as it dropped by 5.24%, falling to $1.06, before dropping further on Tuesday and settling at $1.04, after falling by over 2%.

Image: ADA/USD daily  

ADA/USD daily chart 013122

After dropping to $1.04 on Tuesday, the Cardano price managed to recover on Wednesday, rising by 3.36% and moving to $1.07. However, ADA was back in the red on Thursday, falling by over 3% and settling at $1.04, before registering a marginal increase on Friday, rising by 0.48%. ADA remained in the green over the weekend, registering an increase of 1.05% on Saturday and moving to $1.06, and is presently up by 1,13% in the ongoing session, as buyers look to push the price higher.

We can see that the MACD is currently bearish, but if the price continues to push higher, we could see it flip to bullish.

Looking at IntoTheBlock’s IOMAP for the Cardano price, we can see that ADA has strong support at around $1.05. At this price level, over 162,000 addresses have bought more than 4.4 billion ADA.

Image: IntoTheBlock 

ADA/USD volume chart 013122

The 4-hour Cardano price chart indicates that ADA had dropped to $0.98 on the 24th, after a fairly significant drop. The price pushed up from this level and rose to $1.06, where the 20-bar SMA was acting as resistance. As a result, ADA could move past this level only on the 26th, when it moved past the 20-bar SMA and rose to $1.12 on the 26th. However, ADA fell back after reaching this level and fell back below the 20-bar SMA to $1.01. ADA was able to register a marginal recovery from here, rising to $1.05, where the 20-bar SMA acted as resistance. ADA dropped back to $1.02 on the 28th before recovering, pushing above the 20-bar SMA to $1.07. After a marginal drop from this level, ADA pushed above the 50-bar SMA and moved to its current level of $1.07.

We can see that the MACD is currently bullish, and if ADA can push higher from this level, we could see the Parabolic SAR also flip to bullish.

Image: ADA/USD 4-hour 

ADA/USD 4-hour chart 013122

Cardano (ADA) Network Load Surpasses 90% As DeFi Gains Steam

The average blockchain load on the Cardano (ADA) network has consistently been above 90% over the last few days as decentralized finance (DeFi) applications on the cryptocurrency’s network keep gaining steam.

According to Cardano blockchain insights shared on Google’s Data Studio, the network load started surging between January 14 and 15. This was weeks after the launch of the network’s first usable DeFi application MuesliSwap, which went live after conducting an under-the-radar offering and got to over $1 million in total value locked in two days.

The network’s blockchain load seemingly started surging ahead of the launch of SundawSwap, a “native, scalable decentralized exchange and automated liquidity provision protocol.” The exchange is backed by cFund, Alameda Research, and Double Peak Group.

Per earlier reports, as Cardano’s blockchain load surged the transaction volume on its network surged to briefly surpass the Ethereum blockchain. Cardano’s transaction volume was accompanied by a notable price rise at the time. 

Since its launch, SundaeSwap has seen the total value locked on its platform explode to surpass the $72 million mark, while MuesliSwap’s total value locked has since swollen to exceed $2.6 million.

In total, DeFiLlama data shows DeFi on Cardano is currently close to having $75 million of total value locked. In comparison, $117 billion is locked on Ethereum and $7.7 billion on Solana. 

CryptoCompare’s recent report showed that in December, the number of addresses holding ADA grew to a new all-time high of four million. The report detailed the 4 million figure includes a significant decline in the number of traders holding the asset, which plunged 29.4% from 981,000 to 692,000. Long-term holders, the report adds, grew 5.78% to 279,000 last month.

Cardano Price Is Expected To Reach These Levels

Looking at the Cardano price chart, we see that ADA has managed to recover over the past few sessions. If the current sentiment persists, we could see ADA push above $1.07 and settle at around $1.08.