Cardano Price Forecast: ADA traders position price action at key crossroads just hours before Fed speech


  • Cardano price keeps trading near $0.38 for the sixth day in a row.
  • ADA has received numerous rejections and false breaks to the upside.
  • Bulls keep buying and supporting price action as a breakout trade is signalled.

Cardano (ADA) price is in rough territory as bears dig trenches to defend the last line of bearishness that is still left over from the crypto winter. With a big pivotal level and a technical moving indicator, bulls are facing a very hard patch to go through. The white knight in shining armour that could help ADA bulls take the bearish fortress could well be Fed Chair Jerome Powell if he delivers a light dovish tone with a 25-basis-point hike this Wednesday evening near 19:00 GMT.

Cardano price is set to pop 10% in the last trading hours of Wednesday

Cardano price looks like a famous episode from the HBO hit Game of Thrones called the “Battle of the Bastards.” To spare any more comparisons for those who are not yet familiar with the series or the episode: Bulls are being smashed against a massive bearish castle wall that exists out of the historic pivot level near $0.388, the 200-day Simple Moving Average (SMA) at $0.396 and the monthly pivot level from January. Although bulls received plenty of rejections and false breaks that normally bears would use to run price action into the ground, that has not happened.

ADA bulls are sticking to their belief that 2023 is a turnaround year and the crypto winter is long due for a defrosting period. To break the bearish castle and its defences, a daily close above the 200-day SMA needs to unfold. Then, and only then, can bulls advance toward $0.421 in the near term and to $0.524 in the longer term. Luckily for the bulls, markets expect that Jerome Powell, the chairman of the Fed, will be the white knight to create a much-needed breakthrough with a less restrictive monetary policy and to underlie the good elements that are helping inflation lower. 

ADA/USD daily chart

ADA/USD daily chart

A big systemic risk is another rejection this Wednesday due to a hawkish Powell. This would disappoint the markets and could pour cold water on the hopes for a Goldilocks scenario. The Relative Strength Index (RSI) seems to be pointing in that direction, while the price action is not selling off and the RSI is trending down as selling occurs. In case the positive mood dissipates after the Fed, ADA will drop back to $0.324 in search of support and lose roughly half of its gains for 2023.


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

Bitcoin Weekly Forecast: BTC shows weakness, bears aiming for $90,000 mark

Bitcoin Weekly Forecast: BTC shows weakness, bears aiming for $90,000 mark

Bitcoin (BTC) price hovers around $97,000 on Friday after losing nearly 5% in the last three days. CryptoQuant weekly report shows that activity on the Bitcoin network has declined to its lowest level in a year. 

More Bitcoin News
ONDO Price Forecast: Ondo Chain launched while TVL rises to $654 million

ONDO Price Forecast: Ondo Chain launched while TVL rises to $654 million

Ondo price is nearing its key weekly resistance of $1.38 on Friday, and a firm close above this level hints at a rally ahead. Ondo launches its Ondo Chain, a new Layer 1 blockchain purpose-built for institutional-grade RWAs.

More Ondo News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP are at risk of for further declines

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP are at risk of for further declines

Bitcoin (BTC) hovers around $97,400 on Friday after losing nearly 5% in the last three days. Ethereum (ETH) and Ripple (XRP) fail to recover and face rejection from their key levels, hinting at further corrections.

More Cryptocurrencies News
XRP ETF gains traction as SEC acknowledges Grayscale filing for Solana and Litecoin funds

XRP ETF gains traction as SEC acknowledges Grayscale filing for Solana and Litecoin funds

Ripple's XRP was in the limelight on Thursday following the Chicago Board Options Exchange (Cboe) 19b-4 filing to the SEC to list and begin trading XRP exchange-traded funds (ETFs) for asset managers Canary Capital, WisdomTree, 21Shares and Bitwise. 

More Ripple News
Bitcoin: BTC shows weakness, bears aiming for $90,000 mark

Bitcoin: BTC shows weakness, bears aiming for $90,000 mark

Bitcoin (BTC) price hovers around $97,000 on Friday after losing nearly 5% in the last three days. CryptoQuant weekly report shows that activity on the Bitcoin network has declined to its lowest level in a year. Traders should watch FTX's upcoming repayments to creditors starting on February 18, which could bring in volatility for Bitcoin prices.

Read full analysis
The Best Brokers of the Year

The Best Brokers of the Year

SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.

Read More

BTC

ETH

XRP