Cardano Price Prediction: ADA cues south, next stop at $0.21


  • Cardano price closed December’s auction at a 22% loss of market value.
  • ADA has strong confluence zones near the $0.21 level.
  • Invalidation of the bearish thesis is a flip of the $0.29 barrier into support. 

Cardano price shows strong bearish signals to start the new year. ADA could fall below $0.20 if market conditions persist. 

Cardano price struggles to find support

Cardano price is facing a persistent bearish force that has yet to show signs of waning.

ADA closed December’s auction at a 22% loss of market value on the month, more than five times of Bitcoin’s 4% decline. As of January 2, the smart-contract token is up 3% since breaching the $0.24 price zone. While the three days of bullish price action are optimistic, the ADA price still shows more evidence to suggest that the downtrend will continue. 

Cardano price currently auctions at $0.253. The current pullback finds resistance at Cardano’s previous support zone during December’s 22% downswing. Additionally, the bulls are finding resistance from the 21-day simple moving average. 

A Fibonacci retracement tool surrounding the pandemic lows at $0.01 and the all-time highs at $2.82 shows the current price hovering just above the 50% Fib level at $0.21. The aforementioned level is likely where smart-money bears are considering to relieve their positions

A daily closing candlestick below $0.21 would create a strong possibility for a retracement into the “Golden Pocket” 61.8% Fib level at $0.11. ADA would decline by 53% under the bearish scenario.

tm/ada.1/2/23

ADA/USDT 1-Day Chart 

Invalidation of the bearish thesis could occur, but the bulls will need first to conquer November’s broken support zone at $0.29. In doing so, the ADA price could rally back towards the 38.2% Fib level at $0.39, resulting in a 63% increase from the current Cardano price. 

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP