Cardano price remained strong against the US Dollar, exchanging hands at $0.374. ADA, the token powering the Cardano ecosystem, is up 52% in 30 days and has managed to maintain a 7% increase in value over the past 14 days.
Despite this bullish report, the launch of Jade, the first stablecoin on the Cardano blockchain, failed to lead to a positive price move. Nevertheless, its impact may not be taken away immediately and could eventually trigger a rally as investors slowly adopt Djed.
Cardano is a $12.9 billion crypto ecosystem, currently ranked eighth and commanding over $400 billion in trading volume. Although the price of ADA has remained relatively unchanged over the past 24 hours, its bullish outlook remains intact.
Therefore, the bulls only need to break above $0.40, where they are likely to unlock bullish potential and open the door for the coming weeks, possibly months, and the first target for $3 by the end of 2023. Huh.
Why Cardano price is close to validating a long-term uptrend
Cardano price has been facing resistance at $0.40 for a few days, however it is faltering at $0.374 at the time of writing. The smart contract token has maintained an uptrend for more than three weeks in January, with only one in the red this week.
ADA is not the only coin that lacks the momentum to continue its uptrend, with all top ten cryptocurrencies in the red on Tuesday apart from Dogecoin, which gained 7.4% in price.
Investors around the world are waiting with bated breath for the outcome of the United States Federal Open Market Committee (FOMC) meeting starting today. Market watchers expect an interest rate hike of 25 basis points, down from the previous 50 basis points. The change reflects an overall sentiment that inflation is easing in the greenback nation.
The US Consumer Price Index (CPI) reported a drop in inflation from 7.1% posted for November to 6.5% in December – the most monitored on an annual basis. While this data is not exactly positive for the global economy, it does show that things are starting to move in the right direction – a situation that could result in a nominal rate hike.
The reduction in rate hikes is a positive sign for investors to start directing more money to riskier assets like cryptocurrencies. Therefore, crypto assets like Cardano could experience a drop in liquidity ahead of the Fed’s decision on interest rates later on Wednesday.
Evaluating the Short-Term Profitability Aspect of the ADA Price
The Moving Average Convergence Divergence (MACD) indicator is giving a buy signal on the weekly time frame charts. This call for investors to buy ADA came into the picture after the MACD line flipped blue above the red signal line at the beginning of the year. The move with a close at 0.00 on the mean line strengthens the bullish hold on Cardano price.
Traders should also be on the lookout for further movements in the positive territory of the MACD. Such a move would be highly bullish for Cardano price as it would tap the renewed momentum for gains of $1 in the medium term and $3 in the longer term.
Similarly, Cardano price is trading above its first multi-month high, plotted on the daily time chart, as shown below. A break above this resistance line allowed the bulls to take full control of the reins, helping them sustain the rally from the December lows of $0.24 to $0.40.
Failure to break and hold above the seller’s rush at $0.4 prematurely halted the Cardano price rally. ADA is trading at $0.374 while looking for a suitable support area, preferably above $0.35.
It is important for investors not to lose sight of the bigger picture as a move above $1 is still in the cards in the coming weeks. Focus on placing the Money Flow Index (MFI) at the lower boundary of the overbought region. This situation shows that the buyers still have the upper hand despite the minor pullback from $0.40.
If investors hold their positions and continue with mundane activities in the crypto market for the next few days, there could be a breakout towards the end of the week, with Cardano price likely to reach $0.50.
Traders should also watch for two things: a clear break and sustain above $0.40 and the second above an upper declining trend line. ADA price will gain further momentum if the 50-day exponential moving average (EMA) (in red) breaks above the 100-day EMA (in blue) in the next few days.
On the other side of the fence, a sell signal from the MACD on the daily time frame chart could help investors in the ongoing pullback. However, if the MACD line in blue continues to stay below the red signal line, the decline could extend further, causing Cardano price to seek support at $0.30.
cardano options to buy today
investors are waiting buy cardano As it consolidates, may want to consider other high-potential crypto projects alongside ADA.
Here are the top 15 cryptocurrencies for 2023, as analyzed by crypto news Industry Talk Team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
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