The ADA token, which is under selling pressure along with other cryptocurrency markets, powers Cardano’s layer-1 blockchain architecture, which permits smart contracts. The US dollar and rates increased following a stronger-than-anticipated US inflation report, which had a negative impact on the price of ADA/USD, which was last trading in the $0.37 range and down roughly 1.5% on the day.

The MoM core inflation rate increased to 0.6% from 0.4% in December, which was also revised higher from the initial estimate of 0.3%, according to the January PCE Price Index report, which was released earlier on Friday. Recent data has raised worries that the Fed may need to raise interest rates higher for a longer length of time, which has triggered a risk-off response 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 light of it, it seems unlikely that ADA will reach $3 this year (almost to a 10x increase from current prices). But bulls shouldn’t give up. When more people begin utilizing cryptocurrencies in the coming years and decades, Cardano has a strong chance of keeping its position as the market’s leading blockchain, and a rise to $3.0 is highly likely to happen at some point. Nonetheless, bulls need to practice patience.

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