Cardano’s layer-1 blockchain architecture, which enables smart contracts, is driven by the ADA coin, which, like other cryptocurrency markets, is under selling pressure. The US dollar and rates climbed following a stronger-than-expected US inflation report, weighing on the price of the ADA/USD, which was last trading in the $0.37s and down about 1.5% on the day.
Earlier on Friday, the January PCE Price Index report was published, showing a larger-than-expected rise in MoM core inflation to 0.6% from 0.4% in December, which was also revised higher from the previous estimate of 0.3%. The most recent data has raised concerns that the Fed may need to raise interest rates for a prolonged length of time, causing a risk-off response in traditional and emerging markets.
Cardano Price Prediction
| DATE | ADA | USD |
|---|---|---|
| Today | 01 | 0.3379886 |
With the most recent drop, ADA has fallen below its 200-Day Moving Average of $0.3815 and is now more than 10% below previous monthly highs in the $0.42s. With Cardano at a technical split, today’s closing is critical.
The ADA is presently experiencing an uptrend that started at the close of 2022. If it falls to a recent double bottom in the $0.35 area, it is likely to break below this trend line and its 50DMA, which is just under $0.37. A retest of recent highs in the $0.42 region, on the other hand, would become more probable if the crypto bulls retake the initiative and push ADA to end Friday’s session back above the 200DMA.
The Cardano ecosystem will surely continue to grow in 2023, thanks to its large and dedicated developer and supporter base, which is constantly releasing useful new blockchain protocols, most recently the overcollaterated algorithmic stablecoin Djed. ADA is likely to rise further if cryptocurrency markets continue their sluggish climb from last year’s highly oversold levels.
Today’s Cardano Price
However, the prognosis for a significant easing of financial conditions is not promising because US inflation remains persistently high and the economy remains strong. In other words, the Fed is expected to raise rates three more times in 2023, with no rate cuts until the close of the year. A few rate cuts are expected to be needed before the crypto craze returns.
In this regard, it looks like ADA will not hit $3 this year (almost a 10x increase from current prices). The bulls, on the other hand, should not lose ground. Cardano has a strong chance of retaining its place as the industry’s top blockchain, and as more people begin to use cryptocurrencies in the future years and decades, a rise to $3.0 is very possible. On the other hand, bulls must be patient.
