Cardano price gets underpinned, could move 10% north before New Year

Cardano (ADA) price action is trading in more quiet waters as the spillover effects and aftermath of FTX and BlockFi bankruptcies are finally easing into the background. No real dominoes are  likely to be added to the mix before year-end, and these more placid waters could attract back traders into the cryptocurrency. Desks and individual traders are looking to position themselves for 2023. With several tail risks deflating and the US Dollar off the highs, ADAcould be the trade for 2023.

ADA is a cheap bargain at these levels

Cardano price is currently moving away from $0.30, the low in 2022, and is even seeing its price action becoming underpinned. No real bullish breakout has arrived just yet, but rather some small signs are emerging that bulls are slowly but surely flocking into the much-battered cryptocurrency that has received one punch after another ever since FTX collapsed. Trust seems to be getting restored, and the Relative Strength Index (RSI) is still close to the oversold barrier. 

SOL thus has room for upside, with the red descending trend line and the new monthly pivot for December coming in around $0.350. It is no coincidence that the 55-day Simple Moving Average is nearly coming in on that same level. A bullish breakout above here would be perfect, but traders must stay focused on the 10% gain they could book if SOL tests resistance in the coming weeks and leave the breakout for next year.

ADA/USD weekly chart

Defining that underpinning and that lowest level for 2022 at $0.296 becomes a target on the back of ADA bulls. Bears will gladly try to use some surprises in economic data numbers that could point to higher inflation to run price action back into the ground. Should $0.296 break and print fresh lows for 2022, expect to see possibly a full meltdown toward $0.200, a pivotal level for November of 2021 and bearing a 35% devaluation.