Cardano Price Prediction – ADA Moonshot?

Cardano price appears to have triggered a large number of selling positions after failing to break the resistance at $0.4400. Smart contract platforms succumb to mounting overhead pressure as investors lock in profits. ADA must reclaim the $0.4000 support immediately; otherwise, its legs could extend to $0.3730 before the bulls have another chance to push the price higher again.

Cardano price volume explodes ahead of Fed rate decision

The Federal Reserve will announce its long-awaited interest rate decision on Wednesday at 6 p.m. UTC. Market participants are waiting with bated breath to see if regulators will continue the multi-month rally this year amid calls to rein in inflation.

A 0.75% hike in interest rates means a tougher future ahead, with investors likely to stay away from riskier assets like cryptocurrencies. While the market has become more resilient in recent months, it may be a sign that the worst is over.

Cardano Price Prediction

Technical insights from the eight-hour time frame show that sellers are in control, at least for now.

The outlook for Cardano turned bearish immediately after the price bounced off the $0.4400 resistance – an area reinforced by the 200-day EMA (Exponential Moving Average) (purple).

The rising wedge pattern has worsened the situation for the bulls, who appear to be waiting for lower price levels. A break below the lower trendline of the pattern confirms the bearish move, and ADA appears to be pulling back towards support near $0.37.

ADA/USD 8-hour chartADA/USD 8-hour chart

ADA is now trading below the 100-day SMA (blue) and the 50-day SMA (red). Below the breakout point is expected to rise by 9.06% to $0.3730.

Judging by other indicators such as MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index), the price of Cardano is likely to remain bearish over the next few sessions, especially on Wednesday.

The MACD confirmed a sell signal on Monday as the 12-day EMA (blue) crossed below the 26-day EMA (red). As observed, both lines are trending towards the moving averages, indicating rising selling pressure.

Likewise, the RSI confirms the bears’ grip on negative price divergences. The index’s movement below its midline suggests that sellers have the upper hand.

Key Fundamentals Affecting Cardano’s Price Retracement

Most ADA addresses have been profitable since October 25th, when the MVRV (Market Value Realized Value) climbed above 1, as shown in the chart below. This metric from Santiment tracks the gains and losses of ADA holders by comparing the price of the token’s last move with their current market value.

An MVRV ratio above 1 suggests that most holders are realizing profits and likely selling, which explains the immediate pullback in Cardano price when it broke above 8.8 on October 29. At the time of writing, the MVRV is holding at 3.65, suggesting a further downward extension of the bearish leg.

Cardano MVRV Ratio | Trading View

Given the 2022 bear market, a segment of Cardano whales remains unconvinced that Cardano is ready to change its upward direction. After falling from a 30-day peak of 20,777, the number of addresses with 100,000 to 1,000,000 ADA tokens has now dropped to 20,600. Despite the bulls’ efforts to push the price of Cardano higher, the sell-off from this group is likely to dampen the price action to the upside.

Cardano Supply Distribution | SentimentCardano Supply Distribution | Sentiment

The price of Cardano has hit a stumbling block and is inclined to retreat before another attempt to rise again.

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Source of information: Compiled from CRYPTONEWS by 0x information.The copyright belongs to the author and may not be reproduced without permission

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