The ADA coin, which is under selling pressure along with other cryptocurrency markets, powers Cardano’s layer-1 blockchain architecture, which enables smart contracts. The US dollar and rates increased following a stronger-than-anticipated US inflation report, which had a negative impact on the price of ADA/USD, which was last dealing in the $0.37 range and down roughly 1.5% on the day.
Today’s Cardano Price
The MoM core inflation rate increased to 0.6% from 0.4% in December, which was also revised higher from the initial estimate of 0.3%, according to the January PCE Price Index report, which was published earlier on Friday. Recent data has prompted worries that the Fed may need to raise interest rates higher for a longer period of time, which has triggered a risk-off response in traditional and crypto asset classes.
Today’s ADA Price
With the most recent decline, ADA is once again trading below its 200-Day Moving Average at $0.3815 and is currently trading more than 10% below prior monthly highs in the $0.42 range. The closure of today will be significant because Cardano is at a technological crossroads.
The rise that started at the end of 2022 is being tested by the ADA right now. It appears probable that it will break below this trend line and its 50 DMA just under $0.37 if it declines down to a recent double bottom in the $0.35 region. However, if the crypto bulls retake the initiative and manage to push ADA to end Friday’s session back above the 200DMA, a retest of recent highs in the $0.42 region would become more likely.