Cardano Price Prediction: Early bulls taking on big risks in 2023

Cardano price has been a troublesome digital currency for long-term investors as the smart contract token continues to pack on negative returns. Although the larger time frame narrative portrays a bearish trajectory, the technicals have kept short-term bulls from attempting to make gains. 

Cardano price is in a steep downtrend

Cardano price settled December’s auction In the red, withdrawing 22% of market value from the hands of long-term investors. Since January 1, the ADA price has risen by 10%, prompting a vital question for the smart contract token. Are the early bulls correct in their outlook on Cardano, or is it likely to experience further decline?

Cardano price currently auctions at $0.2693. The bulls have successfully breached both the 8-day exponential and 21-day simple moving averages, which suggests Cardano has more upside potential, at least in the short term. A Fibonacci retracement tool surrounding December’s trading range shows ADA’s current price movement as a 38.2% correction. The move north could rally as high as the 61.8% Fib level near $0.2900 without voiding the larger bearish narrative. Thus, the correction could yield an additional 8% before bears attempt to push the downtrend further.

ADA/USDT 2-Week Chart 

Since the countertrend is still amidst a larger downtrend, traders should keep a tight stop loss to mitigate risk. Invalidation of the countertrend bullish rally idea would occur if the bears can produce a daily candlestick close beneath the recently breached 8-day exponential moving average at $0.2500. A breach of the barrier could prompt a challenge of the 2020 liquidity level at $0.2290, resulting in a 13% decrease from the current Cardano price.