Cardano immediately swung into recovery following the massive dip to $1. The upswing was sharp and consistent but hit a barrier at $1.8, which curtailed the planned strike past $2. ADA had traded all-time high highs around $2.5 in mid-May.
In the meantime, the upcoming smart contract token is trading at $1.66. Marginally beneath the prevailing market value, ADA holds onto crucial confluence support at $1.6 created by the 50 Simple Moving Average (SMA) and the 200 SMA on the four-hour chart.
Keeping this anchor zone protected is critical for sustaining the uptrend; otherwise, if lost, massive declines would come into the picture, forcing Cardano to explore the rabbit hole back to $1.
Cardano’s journey to smart contract capability nears the end
Input Output Global (IOG), Cardano’s developer, has announced the final steps that would lead to the beginning of smart contract support on the platform. A hard fork combinatory event referred to as “Alonzo” will be used to implement the features starting in June and leading to full deployment in September 2021.
In addition to the typical smart contracts that require technical knowledge, IOG plans to introduce an app that nearly anyone with an interest in blockchain can use.
What next for ADA as the price stabilizes?
Cardano is teetering between two key levels; the confluence support at $1.6 and the resistance at $1.8, as highlighted by the 100 SMA. The technical outlook in the four-hour timeframe hints at the trend flipping bearish in the near term.
For instance, the Moving Average Convergence Divergence (MACD) has hit a snag in the positive region and appears to be retreating toward the mean line. If the MACD line crosses under the signal line, a sell signal will be triggered. The downtrend has been reinforced by the Relative Strength Index (RSI) correction toward the mean line.
ADA/USD four-hour chart
However, the support at $1.5 can hold and may see the resumption of the uptrend. If the breakout above $1.8. Trading past this hurdle may trigger massive buy orders as bulls speculate the rise back to $2.5.
Cardano intraday levels
Spot rate: $1.63
Trend: Short-term bearish bias
Support: 1.6 and $1.4
Resistance: 1.8 and $2