• ADA’s price has dropped 0.51% over the last 24 hours according to CoinMarketCap.

 

    • The altcoin’s weekly price performance now stands at approximately -10.79%.

 

  • Traders will want to take note of the three financial announcements that will be made by the US this week.

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.

Recently, analysis performed by the blockchain intelligence firm, Santiment, revealed that there has been a massive spike in whale activity for Cardano’s native cryptocurrency, ADA.

 

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 increase of 0.51%, taking its price up to $0.3637 at press time. The Ethereum-killer’s market cap currently stands at $12.604 billion.

Meanwhile, ADA’s 24-hour trading volume currently stands at $206.461 million. Furthermore, the price of ADA is nearer to its 24-hour low at $0.3596. The altcoin’s daily high stands at $0.3698.

Despite the 24-hour increase in ADA’s price, the altcoin’s weekly price performance remains in the red at -10.79%.

 

Cardano (ADA) Technical Overview

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

ADA’s price movement has been relatively flat going into the new week. This mediocre price movement comes after a 24-48 hour period that saw the altcoin’s price drop below the two support levels at $0.3835 and $0.3720. As a result, the price of ADA also dropped below the 9 and 20 EMA lines on the 4-hour chart as well, where they continue to trade at press time.

In the last 4-12 hours, ADA’s price was able to break above the 9 EMA line on the 4-hour chart. However, it received rejection from the 20 EMA line not long thereafter – causing the altcoin’s price to drop back down below the 9 EMA line.

Technical indicators on ADA’s 4 hour chart are currently in favor of bears as the 9 EMA line is trading below the 20 EMA line. This suggests that ADA’s price is in a short-term bearish cycle. In addition to this, the RSI line on the 4-hour chart is sloped bearishly towards oversold territory. However, the RSI line is currently positioned above the RSI SMA line on ADA’s 4-hour chart. This may be an early indication of a bullish trend reversal for ADA on its 4-hour chart.

Daily chart for ADA/USDT (Source: TradingView)

ADA’s price is attempting to break out of a bearish descending price channel which was established on 17 February, 2023. Thereafter, ADA’s price proceeded to print lower lows and lower highs up until 26 February, 2023.

The 9-day EMA line did cross bearishly below the 20-day EMA line on ADA’s chart while the altcoin’s price traded within the downward-sloped price channel. Currently, the 9-day EMA line remains positioned below the 20-day EMA line – suggesting that the bearish cycle is not over yet.

In addition to this, the bearish thesis is supported by the fact that the daily RSI line is positioned below the RSI SMA line – nearing oversold territory. In addition to this, the daily RSI line is sloped negatively at press time.

The current position of the 9-day EMA line relative to the 20-day EMA line, as well as the daily RSI line’s position relative to the RSI SMA line, both suggest that ADA’s price will continue to fall in the next 24-48 hours.

Should ADA’s price continue to fall, it will break below the key support level at around $0.3567 and look to target the next support level at $0.3367.

This bearish thesis will be invalidated if ADA’s price is able to close today’s and tomorrow’s trading sessions above the aforementioned support level. Should this happen, ADA’s price will likely rebound from the level and set its scope on the upside target at $0.3830 – the closest key resistance level.

Traders may want to wait for the outcomes of the U.S. Durable Goods Orders MoM announcement that will be made later today.

Other key announcements that traders and investors will want to keep note of are the ISM Manufacturing PMI announcement which will be made on 1 March, 2023, and the ISM Non-Manufacturing PMI announcement which will be made on 3 March, 2023.

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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