Cardano Price Prediction: Strong US PPI Dragging ADA/USD to $1.7030 

• Bureau of Labor Statistics has released the PPI data in favor of the US dollar as the Producer Price Index grew 1.0% in July.
• Unemployment claims were 375K, a drop of 12,000 from the prior week’s updated level.
• Forex trading participants may look for a sell trade below the $1.8000 level to the target of $1.7031 and $1.6500. 

The ADA/USD is trading with a bearish bias at the 1.7463 level. Yesterday, the pair closed at $1.797860 after placing a high of $1.891673 and a low of $1.670299. ADA/USD rose and extended its gains for the third consecutive session on Wednesday and reached its highest since the ending week of May. On Thursday, Cardano price prediction remains bearish as the major double top resistance attracts around 1.79000. 

Yesterday, the ADA/USD surged over 20% in a single day and reached its highest in two months near the $1.90 level. All this happened after its founder Charles Hoskinson said that the date for the much-anticipated update would be announced on Friday.

Alzono Purple update will incorporate advanced smart contracts

The new Alzono Purple update will incorporate advanced smart contracts and decentralized finance applications on the blockchain. The said upgrade will be the final step in a multi-stage process to help Cardano compete against the biggest Ethereum network in incorporating smart contracts.

Last Friday, the developers of Cardano Network IOHK said that it had begun onboarding users to Alzono Purple and had started testing the update. The first stage Alzono Blue enabled users on Cardano Network to process simple, smart contracts. In the second stage, Alzono White made the demo Dapps to run on the network as well. 

Now, after the successful launch of Alzono White, Alzono Purple took flight this month, and after this, the last two stages will be Alzono Red and Alzono Black. After all the stages are complete, the final Alzono mainnet will go live in a short period.

Final Alzono Mainnet Hard Fork to be Confirmed on Friday 

According to Charles Hoskinson, the date of the final Alzono mainnet hard fork is expected to be confirmed on Friday. The team was on board and discussed the schedule, which they will reveal to the public once all partners agree. This news added strength to Cardano’s token ADA, and the cryptocurrency ADA/USD moved higher to its 2-month highest level. The hope is that it will match the bigger Ethereum network after incorporating smart contracts.

The Bureau of Labor Statistics has released the PPI data in favor of the US dollar. The Producer Price Index grew 1.0% in July, seasonally adjusted. Whereas, the final demand prices expanded 1.0% in June and 0.8% in May.

Furthermore, the Department of Labor released the Unemployment claims figures, which are almost neutral. The unemployment claims were 375K, a drop of 12,000 from the prior week’s updated level. The last week’s level was changed up by 2K from 385K to 387K. Hence, the US dollar is gaining bullish momentum and driving a bearish trend in Cardano price prediction. 

Cardano Price Prediction – Technical Levels

Support Resistance

1.681547 1.902921

1.565236 2.007984

1.460173 2.124295

Pivot Point: 1.786610

Cardano Price Prediction – Technical Outlook: Is It Going For 38.2% Retracement? 

Cardano price prediction is strongly bearish below an intraday pivot point level of 1.7866 level. On the 2 hour timeframe, the 50 days EMA (Exponential Moving Average – Red Line) is extending resistance at 1.8000. Since the ADA/USD has crossed below this level, the chances of a bearish trend remain pretty solid. 

On the 2 hour chart, the Fibonacci retracement tool is likely to provide support at the $1.7030 level. This level marks the 38.2% Fibonacci retracement level for ADA/USD. The breakout below this level can drive additional selling until 50% and 61.8% retracement levels of 1.6405 and 1.5823.   

The ADA/USD is facing immediate resistance at 1.8000, and a bullish breakout of this level can extend buying trend until the next resistance level of 1.8835 level. Since the ADA/USD price is closing below 50 EMA, the bearish bias remains potent. 

Cardano has also closed a bearish engulfing candle below 50 EMA, while the Stochastic RSI is entering the oversold zone. Both of the indicators are supporting a selling bias in the ADA/USD pair.  

On Tuesday, the ADA/USD price prediction remains bearish below the $1.7866 level. Therefore, the forex trading participants may look for a sell trade below the $1.8000 level to the target of $1.7031 and $1.6500. Alternatively, we may see a buying trend upon testing of $1.64050 level with a target of $1.7500. All the best.  

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