- ADA’s which is ranked eighth by market cap has risen its price by 5% over the last 24 hours.
- The Ethereum-killer’s price is currently resting on a key price level.
- A positive trend line on ADA’s charts suggest that its price will rise in the medium term.
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 by the infrastructure burden of growing costs, energy use, and 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 5% – taking its price up to $0.4023 at press time. The Ethereum-killer’s market cap currently stands at $13.917 billion.
Meanwhile, ADA’s 24-hour trading volume currently stands at $586,277 million. Furthermore, the price of ADA is nearer to its 24-hour high at $0.4094. The altcoin’s daily low stands at $0.3727.
The 24-hour gain that ADA’s price printed has added to the positive weekly price movement for the crypto. At press time, the price of ADA is up 6.58% over the last 7 days.
Cardano (ADA) Technical Overview
ADA’s price has consistently printed higher lows since January 18 this year. As a result, a positive trend line has formed for the altcoin’s price. In addition to this, ADA’s price has been able to break the resistance level at $0.3990 over the last 12 hours after tapping the level 3 times in the last week.
The first time that ADA’s price tapped this resistance level was on January 28, 2023. Thereafter, ADA’s price attempted to breach the level on January 29, 2023, and January 31, 2023. All of these attempts resulted in a retracement in ADA’s price.
The most recent attempt at testing the level may result in a retracement. Traders may look to lower their exposure in their ADA long positions at this point. This can be seen by the current red daily candle.
A technical indicator that suggests that ADA’s price will retrace is the RSI indicator on the 4-hour chart. Currently, the RSI line is sloped negatively towards oversold territory.
This bearishness, however, is weakened by the fact that the RSI line is positioned above the RSI SMA line. In addition to this, the 9 EMA on the 4-hour chart has crossed above the 20 EMA line on the 4-hour chart.
The positive trendline can also be seen on the daily chart for ADA/USDT. Similar to the 4-hour chart, the 9 EMA on the daily chart is bullishly positioned above the 20 EMA on the daily chart. The 9-day EMA line is also offering ADA’s price some support.
The daily RSI indicator is showing early bullish signs as the daily RSI line is sloped positively towards overbought territory. The resistance level at $0.3990 and the positive trend line on the daily chart have formed an ascending wedge chart pattern. This could be a major bullish sign for ADA’s price. If this bullish signal plays out, then ADA will look to target $0.4349.
Furthermore, if the daily RSI line crosses above the daily RSI SMA line in the next 24-48 hours it will add to the confirmation of the bullish thesis.
On the other hand, if the bullish signal does not play out then ADA’s price will either consolidate or drop. The window of opportunity for the bullish move exists until ADA’s price reaches the apex of the ascending chart pattern, which should happen on February 6, 2023.
If ADA’s price drops, then it will first drop to the positive trend line. If this level fails to hold, then ADA’s price will look to target the next support level at approximately $0.3617.
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.