ADA, the native coin of the high-performance, smart-contract enabled Cardano blockchain, gained almost 2% on Tuesday and was last trading around $0.26. On Monday, amid the crypto market sell-off due to hawkish central bank/recession concerns, it briefly fell below $0.25.
Despite yet another hawkish central bank surprise, this time from the Bank of Japan, who unexpectedly changed their so-called “yield curve control” policy, enabling a nearly 20 basis point increase in Japanese 10-year government bond yields, ADA’s rise on Tuesday coincides with a broader recovery in the cryptocurrency markets (similar to the effect of a rate hike).
Prices, though, are still expected to decline. Despite ADA’s Tuesday comeback, the cryptocurrency is still down more than 3.0% on the week and around 19% on the month. In the meantime, ADA has lost almost 40% of its value since the beginning of the quarter, and many bears are certain that the cryptocurrency will continue to decline in value.
The fact that Charles Hoskinson, the creator of Cardano and CEO of Input Output Hong Kong (IOHK), has a dispute with the Ripple community has mostly gone unnoticed by ADA traders. The non-profit organization responsible for the creation of Cardano and other cryptocurrency initiatives is called IOHK.
Today’s Cardano Price
| DATE | ADA | USD |
|---|---|---|
| Today | 01 | 0.25056 |
Cardano Price Prediction
The rate of ADA’s recent decrease has some traders hoping that the cryptocurrency’s price will soon stabilise. Since ADA’s 14-day Relative Strength Index (RSI) score has been below 30 for the past five days, it is considered to be “over-sold.” When the RSI has indicated that ADA is oversold recently, its price has typically stabilised or even experienced a slight short-term recovery in the days and weeks that follow.
A downward trend channel that has been in effect since August was also broken by the most recent decline in ADA over the past several weeks. Traders have interpreted this as another indication that the value of the cryptocurrency is declining at a rate that is probably unsustainable.
Although there are technical signs suggesting some short-term stabilisation for ADA, the price of ADA appears vulnerable to sizable additional losses in the medium run. This is due to the fact that the longer-term downturn from the record high of about $3.16 in September 2021 is still very much intact. The 21-Day Moving Average has recently served as a critical region of resistance for the cryptocurrency, which also continues to trade below all of its major moving averages, all of which are heading lower. Many bears predict that support under $0.20 will be tested early in 2023.
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