- 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
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
Editors’ Picks
Bitcoin likely to remain in red through the next quarter if history is any indication
Bitcoin (BTC) price produced a monthly close at $27,210, noting a -6.92% return for May. The last-minute slide in BTC put an end to the four-month bullish streak that kickstarted the 2023 rally.
Ethereum vs. SEC: Implications of Wahis’ insider trading settlement on ETH
Ethereum (ETH) is the subject of a new controversy, with the second-largest crypto finding itself in the rut after the United States Securities and Exchange Commission (SEC) settled its insider trading case against the Wahi brothers.
Justin Sun’s TRON hits all-time high of 10.9M daily transactions, braving crypto winter
Justin Sun, the founder of TRON – one of the largest decentralized blockchain DAO ecosystems in crypto – shared a new milestone for the token on Thursday. TRON processed 10.9 million in daily transactions, hitting a record high.
Ethereum fees decline by 70% from 2023 highs as top DeFi protocols lose users
Ethereum is currently facing trouble in the spot market due to the broader market bearishness as well as investors' skepticism. But while the spot market only recently took a turn for the worse, the DeFi space has been only negative for a long time.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.