- ADA’s price has risen more than 6% over the last 24 hours according to CoinMarketCap.
- The positive CPI data resulted in a market-wide uproar in prices over the last 24 hours.
- ADA’s price may receive one more pump from the PPI data before dropping in the next 24-48 hours.
Cardano is a third-generation, decentralized proof-of-stake (PoS) blockchain platform designed to be a more efficient alternative to proof-of-work (PoW) networks. Scalability, interoperability, and sustainability on PoW networks like Bitcoin are limited in terms of scale because of the high amounts of energy they use as well as the slow transaction times.
Cardano (ADA) Current Market Standing
Cardano (ADA) is ranked as the eighth biggest project in terms of market cap, according to CoinMarketCap. It experienced a 24-hour price gain of 6.51%, taking its price up to $0.4105 at press time. The Ethereum-killer’s market cap currently stands at $14.22 billion.
Meanwhile, ADA’s 24-hour trading volume currently stands at $529,498 million. Furthermore, the price of ADA is nearer to its 24-hour high at $0.4192. The altcoin’s daily low stands at $0.3826.
ADA’s 24-hour price gain has added to its positive weekly performance, which currently stands at +6.97% at press time.
Cardano (ADA) Technical Overview
4-hour chart for ADA/USDT (Source: TradingView)
The price of ADA retraced slightly over the last 4-8 hours after rampaging through the resistance levels at $0.4017 and $0.4080 over the last 24 hours with an upward move that saw ADA’s price rise from $0.3819 to reach $0.4200.
The price of ADA did retrace down to the former resistance, but now support level at $0.4080 in the last 4-hour cycle but bounced off of the level to trade at its current price.
The bullish momentum which propelled ADA’s price over the last 24 hours seems to be losing strength as indicated by the RSI indicator on ADA’s 4-hour chart. At press time, the RSI is in overbought territory which suggests that traders will begin to sell their ADA holdings in the next 24-48 hours.
In addition to this, the RSI line on the 4-hour chart is already sloped negatively as traders begin to take profit from ADA’s recent price surge.
Confirmation of the bearish thesis will be if ADA breaks below the support levels at $0.4017 and $0.4080 in the next 12-24 hours.
On the other hand, if ADA’s price breaks below the support level at $0.4080 and remains above the $0.4017 support level, then it may be just a temporary retracement before another leg up which will likely attempt to break through the resistance level at $0.4200.
Daily chart for ADA/USDT (Source: TradingView)
A noteworthy bullish flag has recently triggered on ADA’s daily chart, as the 9-day EMA line crossed above the 20-day EMA line over the last 48 hours. In addition to this, the daily RSI line crossed bullishly above the daily RSI SMA line recently.
However, similar to the 4-hour chart, the RSI line is sloped negatively – suggesting that the price of ADA will drop in the next 24 hours. Whether or not this drop will be a slight retracement before another leg up will be indicated by ADA’s price movement relative to the support levels at $0.4017 and $0.4080.
If ADA’s price drops below the two support levels then it may look to drop to $0.3717 thereafter. However, a drop between the two levels will most likely be a liquidity building move before another leg up.
Should another leg up be initiated, ADA”s price will likely target the resistance level at $0.4377. Investors and traders will just need to be cautious as the crypto market is not out of its bearish cycle yet.
Furthermore, traders will exploit any profit taking opportunities that present themselves in the coming weeks to recover losses from the terrible year the crypto market had in 2022.
The slower momentum oscillator, the RSI indicator, on both charts suggests that ADA’s price will drop in the coming 24-48 hours. However, there is still the PPI data coming out later today that may pump crypto prices one more time before the inevitable drop in prices market-wide.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
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