Cardano price suddenly looks not that dire after all 25% gains possible by New Year


  • Cardano price jumped over 1.5% on Thursday as only late in the US session a tailwind emerged that lifted cryptocurrencies higher.
  • ADA could be popping higher toward $0.324 and possibly breaking out of the range trade.
  • Expect to see a volatile US session on Friday after PPI, with data expected to confirm diminishing inflation.

Cardano (ADA) price is advancing in the wake of important US data coming out throughout the US trading session. First up, at the start of the US session on Friday is the Producer Price Index numbers (PPI), which analysts forecast to be tilting to the downside. This would mean that overall inflation is cooling down further.

Later in the US session, the University of Michigan comes out with expectations and forecast inflation numbers. Confirming a drop similar to PPI could trigger a massive wave of tailwinds and breakouts in equities and cryptocurrencies.

ADA traders see it is time to face their fears

Cardano price has been trading against the low of 2021 for most of November, as the whole of 2022 got dictated by two main elements: inflation and the crypto winter. Today more signs will be seen regarding the first and biggest issue for 2022: inflation. The market tentatively expects that inflation will be shown decreasing further. With the PPI numbers today and US inflation figures next Tuesday, the roadmap is being made for the Fed and its statement on Wednesday, where the base case scenario is that more hikes will come but at a much less and more digestible pace and size. 

Thus, ADA will see many bulls gearing up to be part of this rally as this would mean that finally some bearish pressures are fading. Expect first to see a test at $0.324 before breaking out and popping up toward the monthly pivot at $0.35, which falls in line with the 55-day Simple Moving Average (SMA). That level to get tested by the end of this week would be ideal for advancing into the coming weeks. Then look for $0.40 as the cherry on the cake by Christmas, printing a 25% ADA price increase. 

 ADA/USD daily chart

 ADA/USD daily chart

The risk with data points is that numbers are always up for interpretation. It depends whether the new number comes out higher than expectations or if the revision from last month triggers a drop and comes out lower than the current number. This kind of number could trigger a knee-jerk reaction and accelerate the downside toward $0.300 for a test or even break its low for 2022 at $0.297. The road would be open for another leg lower toward $0.280 in that case.


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

IRS says crypto staking should be taxed in response to lawsuit

IRS says crypto staking should be taxed in response to lawsuit

The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.

More Cryptocurrencies News
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.

More Solana News
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.

More Ethereum News
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election. 

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

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