Cardano price prediction: The crypto market is yet to find relief following the deep dive that commenced late last week. Cardano (ADA) recovered alongside other cryptocurrency majors including Bitcoin (BTC).
Although the bullish outlook was bolstered by news surrounding the Federal Reserve’s plan to implement at least three rate cuts in 2024 while keeping interest rates unchanged at 5.25 to 5.5%, the force backing the bullish outlook weakened soon after.
Cardano price briefly surged to $0.68 but sellers swept in, leading to sudden trend correction. The smart contracts token, whose decentralized finance (DeFi) TVL continues to rise, nosedived to trade at $0.56 on Monday during the US session.
Recommended for you: Cardano Founder Charles Hoskinson Denies Partnership With XRP
Cardano Price Prediction: ADA At Crossroads
Cardano is holding below the 23.6% Fibonacci retracement — a price level if not reclaimed may trigger a bigger sell-off as holders rush to protect their capital.
The Relative Strength Index (RSI) shows that sellers have the upper hand, hence the likelihood of declines increasing this week. If Fibonacci levels are considered, ADA may drop another 18% to $0.46 before bulls can swoop in and contain the bearish situation.
An incoming sell signal from the Moving Average Convergence Divergence (MACD) indicator could worsen the situation for bulls, especially if traders decide it is time to short Cardano. This sell signal will manifest with the blue MACD line crossing below the red signal line.
The 20-day Exponential Moving Average (EMA) (blue) will try to stop the ongoing correction. However, if its current support at $0.443 weakens, a major breakdown will follow, paving the way for losses to the 50% Fibo.
However, two factors may help ADA sidestep the implied 18% drop to $0.46, starting with Cardano immediately rebounding and reclaiming the 23.6% Fibo as support.
If the down leg extends but respects the 20-day EMA, the path with the least resistance could quickly flip upwards.
Movement above the 23.6% Fibo could go a long way to change the traders’ perception of the market from bearish to bullish going forward. In that case, investors may start acclimatizing to a major upswing aiming for $1.
Investors may want to know that Cardano emerged as a better performer compared to XRP from January 2023, with a growth of 212% and 170%, respectively.
In other words, an equal investment in ADA and XRP would have given a better return when put into the smart contracts token as opposed to the international money remittance token.
Related Articles
Read More: Can ADA Dodge 18% Death Dive or Succumb to Bearish Onslaught?