• Cardano (ADA) is coming under selling pressure as broader cryptocurrency markets are weighed down by US inflation and stock market data.
• ADA/USD is currently testing an uptrend that has been in play since the end of 2022, while its 200-Day Moving Average remains at $0.3815.
• The outlook for a significant easing of financial conditions doesn’t look great, so Cardano hitting $3.00 this year seems unlikely unless there is a series of Fed rate cuts.
Cardano Price Forecast
The cryptocurrency that powers Cardano’s smart-contract-enabled layer-1 blockchain protocol, ADA/USD was last changing hands in the $0.37s, down around 1.5% on the day, with crypto weighed by downside in US stocks and upside in the US dollar and yields in the wake of a hotter-than-expected US inflation report.
ADA’s latest decline means it is now over 10% below earlier monthly highs in the $0.42s and is back under its 200-Day Moving Average at $0.3815. Cardano is now at a technical crossroads and today’s close will be key – currently testing an uptrend that has been in play since the end of 2022 if it breaks below this trend line and its 50DMA just under $0.37, then a drop back to a recent double bottom in the $0.35 area seems likely
The Cardano ecosystem will almost certainly continue to grow in 2023 thanks to its large community of supporters and developers who continue to launch useful new protocols on the blockchain such as Djed overcollaterized algorithmic stablecoin .
With US inflation remaining sticky at elevated levels and the economy still humming along nicely, the outlook for a significant easing of financial conditions isn’t great – which means 2023 will probably see at least three more Fed rate hikes, and might not see any rate cuts before the end of the year..
Assuming cryptocurrency markets continue their gradual recovery from last year’s highly oversold levels, ADA can certainly continue to appreciate – but only with a series of rate cuts could Cardano hit $3 this year.