• ADA’s price has climbed over the last 24 hours as the crypto market enters a relief rally.

 

    • The altcoin’s price broke out of a steep descending price channel over the weekend.

 

  • US inflation data will be released later today which will impact prices in the crypto market.

Cardano is a proof-of-stake (PoS) blockchain platform designed to act as an efficient alternative to proof-of-work (PoW) networks. Recently, accusations have been made on Twitter that Cardano is too centralized, with its parent company Input Output Hong Kong (IOHK) set up in such a way that it will always have control over the network.

The founder and CEO of Cardano, Charles Hoskinson, recently snapped back at critics following the collapse of the recent crypto bank failure. In a tweet, Hoskinson made a comparison between the operations of crypto firms such as Circle, Paxos, and Tether with those of traditional banks.

He emphasized that these firms have endured under conditions that have largely caused traditional banks to fail. Hoskinson also inferred that despite the resilience of these crypto companies, the general public’s perception of crypto has not changed a bit.

 

Cardano (ADA) Current Market Standing

Cardano (ADA) is ranked as the seventh biggest project in terms of market cap, according to CoinMarketCap. It experienced a 24-hour price gain of 1.58%, taking its price up to $0.3447 at press time. The Ethereum-killer’s market cap currently stands at $11.957 billion.

Meanwhile, ADA’s 24-hour trading volume currently stands at $535.545 million following a 24-hour increase of 3.73%. Furthermore, the price of ADA is nearer to its 24-hour high at $0.3521. The altcoin’s daily low stands at $0.3287.

The 24-hour rise in ADA’s price has added to the altcoin’s positive weekly price performance. At press time, ADA’s price is up 3.84% over the last 7 days.

 

Cardano (ADA) Technical Overview

4-hour chart for ADA/USDT (Source: TradingView)

ADA’s price consolidated around the support zone between $0.3048 and $0.3102 after breaking out of a descending price channel on 10 March 2023. It continued to consolidate within this zone until the evening of this past Sunday, when it entered into a 24-hour rally.

This rally took its price up from a low of $0.3021 to a high of $0.3517. In this move, ADA’s price was also able to flip the 9 and 20 EMA lines on the 4-hour chart into support. A short-term bullish cycle was also triggered for the altcoin’s price during this move as signaled by the shorter EMA line on the 4-hour chart crossing above the longer EMA line.

ADA’s price then retraced 1.01% on Monday evening and has consolidated between the parallel price channel of $0.3395 and $0.3479. The RSI indicator on the 4-hour chart also shows that ADA is currently oversold. As a result, ADA’s price may decline in the coming 24 hours as traders and investors may seize the opportunity to recover some of their 2022 losses.

A confirmation of the bearish thesis will be if the price of ADA closes below the 9 EMA line on the 4-hour chart in the next 24 hours. Should this happen, ADA’s price will likely target the support at $0.3165.

Daily chart for ADA/USDT (Source: TradingView)

ADA’s break out of the steep descending price channel can be seen more clearly on the daily timeframe. This break came after the support level at around $0.3050 was able to hold its own this past weekend.

Sellers were unable to close the altcoin’s price below the level which ultimately granted bulls an opportunity to purchase ADA at a premium and boost its price with minimal resistance.

Similar to the 4-hour chart, ADA’s price was able to break above the 9 and 20 EMA lines on the daily timeframe – flipping the two key EMA lines into some much-needed support.

At press time, ADA’s price is resting on the 20-day EMA line after some sell pressure entered ADA’s charts today. The market may be taking profit before the US inflation data is released later today which has historically impacted the crypto market quite severely.

Risk-averse traders seem to be maintaining their long positions for the Ethereum-killer, however. This may have something to do with rumors that the US inflation data will come out better than expected later today.

A key level that traders and investors will want to watch is the 20-day EMA line. Should ADA’s price close today’s trading session below the level, then ADA’s price will likely fall in the next 24-48 hours. The inflation rate announcement which will take place later today will also be a key event that traders will want to pay attention to.

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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