Cardano’s layer-1 blockchain architecture, which supports smart contracts, is powered by the ADA coin, which is under selling pressure along with other cryptocurrency markets. After a hotter-than-expected US inflation report, the US dollar and rates rose, which weighed on the price of ADA/USD, which was last trading in the $0.37s and down about 1.5% on the day.

The January PCE Price Index report was released earlier on Friday, revealing a larger-than-expected increase in MoM core inflation to 0.6% from 0.4% in December, which was also revised higher from the previous estimate of 0.3%. The most recent data has sparked concerns that the Fed may need to hike interest rates higher for a longer period of time, which has caused a risk-off reaction in traditional and crypto asset classes.

With the most recent dip, ADA is back under its 200-Day Moving Average at $0.3815 and is now over 10% below former monthly highs in the $0.42s. With Cardano being at a technical fork, today’s closure will be crucial.

Today’s Cardano Price

Cardano Price Prediction

ADA is currently testing an uptrend that began at the end of 2022. If it declines down to a recent double bottom in the $0.35 region, it looks likely that it will break below this trend line and its 50DMA just under $0.37. However, a retest of recent highs in the $0.42 region would become more likely if the crypto bulls retake the initiative and manage to drive ADA to close Friday’s session back above the 200DMA.

The Cardano ecosystem will undoubtedly keep expanding in 2023, thanks to its sizable and devoted developer and fan base that keeps launching helpful new blockchain protocols, most recently the overcollaterized algorithmic stablecoin Djed. ADA can probably continue to increase, assuming that cryptocurrency markets continue their slow ascent from last year’s severely oversold levels.

But, the outlook for a big easing of financial conditions isn’t fantastic because US inflation is still stubbornly high and the economy is still doing well. In other words, the Fed will likely increase rates by three more times in 2023 and there may not be any rate cuts until the year’s end. A few of rate decreases will likely be required for the crypto enthusiasm to truly return.

In that regard, it appears doubtful that ADA will reach $3.0 this year (almost to a 10x increase from current prices). Bulls, however, shouldn’t give up. Cardano has a great possibility of maintaining its position as the industry’s leading blockchain, and as more people start using cryptocurrencies in the upcoming years and decades, a rally to $3.0 is very likely to occur at some point. Bulls must, however, exercise patience.

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