Cardano (ADA) has been on the decline for more than a year now, ever since it reached its all-time high back in September of last year at $3.10. Throughout 2022, the price of ADA has declined by around 80%. More recently, the price of ADA reached as low as $0.33, which was the lowest in 20 months. Nonetheless, despite ADA being bearish and on the decline, ADA has been trending and trading volume has been relatively high, despite the current state of the market.
Following the recent trending nature of ADA, there has been a slight increase in the price in the last few days. ADA increased by 10%, but it is still not enough to suggest a potential reversal in the price of ADA.
Nonetheless, this article goes through the technical and fundamental factors of ADA that could have an impact on the price of ADA for the coming days/weeks.
Cardano (ADA) Technical Analysis
As seen in the ADA/USDT 1-day chart, Cardano is quite bearish. Recent price movement suggests that ADA recently found resistance at the lower trendline, meaning that the recent correction was kind of expected. Nonetheless, the price remains bearish and we could expect the price to keep declining in the coming days.
Indicators
The fear and greed index suggests that there is extreme fear in the current market, especially for ADA, whose price has been on the decline for more than a year now. Though extreme fear often leads to reversals, that might not be the case in the short run for ADA.
The MACD line of a 1-day chart is currently slightly above the signal line but quite below the baseline. Hence, even though the shorter run momentum is slightly on the bullish end, that could easily change.
The RSI of a 1-day chart was recently below 30 and in the oversold region. This then saw ADA have a slight increase in price in the last few days. Though we could assume that since the RSI is now above 30, the price could keep declining.Â
The 20-day MA line is currently above the price of ADA, meaning that the trend remains bearish for Cardano. This MA line could act as resistance to the price of ADA if the latter attempts an increase.
Cardano (ADA) Fundamental Analysis
Perhaps one reason why Cardano (ADA) has been trending recently is that it was announced that Algorand is now in the Cardano ecosystem. Given the magnitude that Algorand has, it could have a huge impact on the development of Cardano as well. Though it’s essential to point out that as much as Algorand is in Cardano, Cardano is in Algorand, given that the two are interoperable. This comes as a result of the deployment of Milkomeda L2.
Charles Hoskinson, the founder of Cardano, was quick enough to make the announcement on Twitter.
And by the power of blockchain transitivity, Algorand is now on Cardano https://t.co/wpKDNB6LFW pic.twitter.com/1N6SlyRRdz
— Charles Hoskinson (@IOHK_Charles) October 19, 2022
Though Sebastian Guillemot, who is a contributor to both Cardano and Algorand, was also quick enough to correct Hoskinson on the correct way to phrase the announcement.
Hoskinson then comically replied through a GIF that that’s the way he wants it phrased
— Charles Hoskinson (@IOHK_Charles) October 19, 2022
Community engagement has slightly increased for Cardano as well due to the yearly Cardano Summit that will be held in November. Additionally, Hoskinson recently stated on his Twitter account that something of major significance will be announced in November. No matter what that is, ADA bulls are eagerly waiting for this announcement that could potentially be a pretext for a reversal in the long-term trend.
Something special is coming in November pic.twitter.com/arqIPdt8yT
— Charles Hoskinson (@IOHK_Charles) October 22, 2022
In other news, Cardano is also rumored to soon be listed on FTX. If that happens in the coming months, then it could do wonders to the price of ADA.
Read more: Cardano Listing Implied by Sam Bankman-Fried
ADA Price Prediction
Based on this analysis of Cardano, it is unlikely for ADA to have a sudden surge in price. Currently, ADA may initially face resistance at $0.38. Assuming the bullish momentum increases soon, then ADA could break this resistance and aim higher. However, as it stands, ADA is likely to keep declining in the coming weeks. Though there is strong support at around $0.30, bears may likely continue to have control of ADA.
Takeaways
- Cardano has been trending recently, despite being quite bearish.
- Technical indicators suggest that ADA is unlikely to be bullish any time soon.
- Recent teases by Charles Hoskinson have increased Cardano’s community engagement.
- If support at $0.31 fails, ADA could be heading further down.
