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- ADA’s price has dropped 1.86% over the last 24 hours according to CoinMarketCap.
- A bearish chart pattern on ADA’s daily and 4-hour charts suggest that ADA’s price will continue to drop.
- Today’s Interest Rate announcements may cause ADA;s price to pump briefly.
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 drop of 1.86%, taking its price down to $0.356 at press time. The Ethereum-killer’s market cap currently stands at $12,330 billion.
Meanwhile, ADA’s 24-hour trading volume currently stands at $337,097 million. Furthermore, the price of ADA is nearer to its 24-hour low at $0.3469. The altcoin’s daily high stands at $0.3642.
ADA’s drop in price over the last 24 hours has added to its negative weekly performance. At press time, the price of ADA is down 7.97% over the last 7 days.
Cardano (ADA) Technical Overview
4-hour chart for ADA/USDT (Source: TradingView)
The price of ADA has bounced off of the support level at $0.3508 on its 4-hour chart. This bounce in ADA’s price may be short-lived, given the current bearish descending triangle chart pattern present on ADA’s 4-hour chart.
This retracement seems to have started after ADA’s price was rejected by the 9 EMA line on its 4-hour chart.
The U.S. Core Inflation Rate YoY and the U.S. Inflation Rate YoY announcements that will be made later today may have a positive impact on crypto prices this afternoon.
According to TradingView, the Core Inflation Rate YoY is forecasted to be 5.5 after previously being announced as 5.7. Meanwhile, the Inflation Rate YoY is forecasted to be 6.2 after previously being 6.5.
Lower than expected Core Inflation Rate and Inflation Rate figures will be bearish for the U.S. Dollar and will help crypto strengthen against the Dollar.
Daily chart for ADA/USDT (Source: TradingView)
The bearish descending triangle chart pattern can also be seen on the daily chart for ADA/USDT. Similar to the 4-hour chart, ADA’s price is trading below the 9 and 20 EMA lines on ADA’s daily chart.
Technical indicators on the altcoin’s daily chart show that ADA’s price is in a bearish cycle, with the 9-day EMA line crossing bearishly below the 20-day EMA line on 9 February, 2023.
In addition to this, the daily RSI indicator also suggests bearish sentiment. At press time, the daily RSI line is sloped negatively towards oversold territory and is also positioned bearishly below the daily RSI SMA line.
With the impending Interest Rates announcements forecasted to be negative for the U.S. Dollar, it’s fair to say that ADA’s price will rise in the next 12-24 hours. However, the bearishness indicated by the technical indicators on ADA’s 4-hour and daily charts suggests that any increase in ADA’s price will meet a bearish fate.
Therefore, the price of ADA may drop in the next 24-48 hours. Traders will also likely take profit from any upside moves that ADA’s price will undergo for the next few months as the fight to tame global inflation continues – resulting in an inevitable retracement in ADA’s price during the ongoing bear market.
Should ADA’s price drop in the coming 24-48 hours it will look to target the $0.3505 support level. If this level fails to hold, then the downside target will be the next support level at $0.3381.
On the other hand, if ADA’s price is able to break out of the current bearish chart pattern towards the upside then ADA’s price will rise to $0.3701. The price of ADA will still fall victim to a profit-taking process as traders will look to recover losses from the terrible year that ADA had in 2022.
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.
The post Cardano (ADA) Price Prediction: What to Expect in the Next 48 Hours appeared first on Coin Edition.