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Cardano Enters 2023 With A Bang, But ADA Still Bearish In The Short Term 

Cardano (ADA) started 2023 with an upward trend that retested the $0.2522 resistance level but has since failed to gather any meaningful momentum to sustain the run.

As of writing, Coingecko notes an increase of a measly 0.2%. This might be small gains, but is a great indicator that investor sentiment has reversed by the start of this fiscal year. 

Can ADA Bounce Back?

Cardano in 2022 has been very bearish in terms of its native token ADA. Even after its Vasil hard fork, an event likened to the Ethereum Merge, the token still continued its downward spiral to its current price of $0.2491. 

One reason that pushed ADA’s price down is the current macroeconomic situation. During the first quarter of 2022, the U.S. Federal Reserve raised rates until last month which is the seventh rate increase in 2022. 

This in turn had adverse effects on the market, pushing the price of both traditional finance instruments and digital assets down. But 2023 seems to have a new effect on the struggling ecosystem. 

Cardano Fared Better Vs. Competitors

The recent FTX debacle dealt a blow to any protocol or ecosystem affiliated with the failed exchange. Solana, a touted “Sam coin”, fell in value tremendously. According to recent news, Solana’s native token SOL has fallen so much that some are saying they are nearing collapse. 

According to Santiment, ADA is undervalued at the moment, showing extreme exhaustion of the bears. Twitter users who are very bullish on Cardano share metrics that are increasing. With the upcoming on-chain upgrade bringing more features on the platform, investors on ADA might see more bullish action in the coming weeks. 

With Solana down, the NFT market is shifting from Solana to Cardano. However, Cardano still has a long way to go to be even on par with Solana’s trade volume and value. ADA investors and traders could see the token break through the $0.2522 price resistance. 

A break on this price resistance level could be a new sign of life to the struggling ecosystem. In the long term, investors and traders should watch for macroeconomic developments as this has a strong effect on the crypto markets. 

As markets recover, ADA’s current price movement could be a catalyst to a stronger bullish movement. However, ADA’s volatility is increasing which, if the $0.2522 resistance holds, can lead to drops as low as $0.2397.

-Featured image: The Independent

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Why Cardano (ADA) Could Be Registering Another Decline, Analyst Explains

Cardano faces a new obstacle with the impending Vasil update. Analyst and futures trader Peter Brandt predicts poor performance for the coin based on current trends and projections.

He recently tweeted on the present state of affairs for Cardano.

“This is a fractal chart pattern called a descending triangle. If the construction continues in the fractal, $ADA should have one more significant retreat.” 

The keywords are “should,” and not “must,” Brandt tweeted.

The analyst pointed out the coin’s current trend. Although Cardano has been doing poorly as of late, the market still seems to be anticipating the worse for the currency based on the current downward angle.

Expectations and conjecture are not a guarantee, but they do help to outline the paths the asset could take in the future.

A Crash In The Offing For Cardano?

And as a result of the crypto market’s recent performance, this research may cause investors to worry about a possible impending crash.

The coin’s value has fallen from its recent high of $0.5043 at the market’s closing to its current level of $0.4574. This is a 90% discount, which is huge.

In spite of this, the value of the coin has remained relatively unchanged.

Cardano’s current price has been attempting to extricate from the 78.60 Fib level, which is now located at $0.5025. However, the bulls have not gained sufficient aggressiveness for this, making the price extremely volatile.

This inability to barrel upwards, together with the analysis, may indicate that the larger decline has already begun.

This decline may also be associated with the underperformance of other crypto assets. According to Coingecko, the 10 leading cryptocurrencies have been on a downward trend, with Ethereum losing 10% of its value in just a week.

Broader Market Seen To Experience More Pain

This linkage with leading cryptocurrencies can further push Cardano’s price towards the bottom. As a result of Bitcoin’s decline following the release of the latest CPI report and expectations of a 1% increase in interest rates, the broader market will continue to suffer greatly.

Latest headlines of the Vasil upgrade may not be sufficient to prevent a broad market decline. If Cardano’s future is to be bright, the crypto market as a whole must perform better.

This is extremely unlikely, though, considering Bitcoin closely follows the S&P 500 Index. In light of this, Cardano investors should prepare for another crypto market crash. If investor sentiment is resilient, a catastrophic scenario such as the one we just outlined can still be reversed.

As Cardano’s upgrade nears, additional information should become available over the next few days.

ADA total market cap at $15.5 billion on the daily chart | Source: TradingView.com

Featured image from Cryptocurrency News, chart from TradingView.com