Cardano has made a strong comeback in the last week. On the 20th of July, ADA was trading at a one-month low of $1.05, but it jumped by more than 16% in the week that followed. After a bullish breakout, ADA is now struggling to maintain an uptrend.
The token opened the day at $1.27 and rose to an intraday high of $1.31. However, ADA failed to find a footing above the key resistance level at $1.31 and started a retreat right after.
At the time of writing, it is trading at $1.28 down by 1.5% in the last 24 hours.
In order to break above $1.31 and make a clear close, buyers need to step in to maintain the uptrend. The crucial 50 Day SMA is also in the same range at $1.33. A break and further sustenance above these levels will bring $1.42 to play.
However, if bulls fail to hold up, ADA will retrace back to $1.20 which looks likely for now. further, $1.15 could be put back to the test in case of an extended downtrend
However, the indicators for ADA price are still neutral with very less indicators point out a sell signal. While the RSI is neutral on the four-hour chart, the MACD is flashing a buy signal.
On the other hand, the Trading volume has dropped 18.22% to $1.66 billion, with a total market capitalization of roughly $40.85 billion.
The Cardano network has reached a pivotal moment in its development and updates. The Goguen phase of the protocol’s roadmap is now in progress, and it involves introducing smart contracts to the network. The Goguen phase is in its final stage i.e Alonzo.
The community has been excited to see Alonzo’s much-anticipated smart contract feature in action, as it enables the creation of decentralized apps (DApps) on the blockchain. Hence, a big breakout can be expected as soon as the update is launched on the mainnet.