The price of Cardano (ADA) has seen a strong trend over the past few weeks. The XRP News caused another bullish increase in the last few days. What can investors expect from Cardano now and how high will the price go now?
It’s been a little over a month since Cardano’s price hit its all-time low of $0.215. The prices were being pushed down by some bad news for the crypto market. Lawsuits have been filed against well-known crypto exchanges such as Coinbase and Binance.
In addition, the US financial supervisory authority SEC emphasized that it considers not only XRP, but also Cardano, for example, as a security. There are even reports of trading bans on altcoins in general spreading around the web, causing panic. ADA/USD hit its lowest level since January 2021.
“Well done XRP. One small step for the XRP Community, one giant step for cryptocurrencies!” https://t.co/b547rNPMMb
— Michael Branch (@Michael63140627) July 14, 2023
The Cardano course has already exploded by more than 50 percent
But now, investors buying altcoins have seen a sharp reversal. Cardano’s price has recovered more than 50 percent from its lows and is trading at around $0.33 at the time of publication. The reason for the recent increase is mainly due to the good news in the case of XRP vs SEC. A US court ruled that XRP is not a security.
Not only XRP itself, but also other altcoins can benefit hugely from the news. Because if XRP is not to be considered as a security, this could also apply to other tokens like Cardano, is the conclusion of many investors. If Cardano does not fall under the securities regulatory guidelines, this would significantly limit the SEC’s ability to act. Your efforts to have the purchase of unregistered stock punished and banned by the courts may be coming to an end.
XRP news is also good for Cardano’s course
Therefore, the XRP news can be considered as research for all altcoins and the entire crypto market and could further fuel the course. However, the rally has already lost momentum and the price of ADA has recently fallen again slightly. From just below $ 0.38 yesterday, it fell again more than 15 percent. XRP and other altcoins like Stellar, which were parabolic recently, are now experiencing the correction.
Investors are wondering whether buying Cardano will bring huge profits after the XRP news. Just looking at the news, it seems too early to make a clear statement. Because if you take a closer look at the court decision in the XRP case, you will find that the victory for all altcoins may not have the lasting effect as expected. On the one hand, the SEC was also partially successful in which the court decided that XRP would be considered a security when sold to institutional investors.
And on the other hand, the verdict only applies to XRP and the US market. Other countries may make different determinations as to whether XRP is a security. Furthermore, the judges only ruled in this single case. It is by no means certain that judges in the Cardano case will reach the same decision. In addition, the SEC still has the option to appeal XRP and go to a higher court. It goes without saying at this point that Altcoins are not generally considered securities.
An important chart indicator no longer sees Cardano overbought
If you still want to buy Cardano now, you should take a look at the technical indicators, which can give hints as to whether the ADA/USD rate may rise more now. The chart analysis can also be used to make the Cardano forecast for 2023.
The Relative Strength Index is a useful first indicator. This chart instrument, popular with analysts, assesses whether an asset is overbought, oversold or in a neutral buying zone.
The daily chart shows that after the hype of the XRP news, Cardano left the overbought area again and is now at around 60/100. Cardano is now exactly in the neutral zone and the interest of buyers and sellers is roughly balanced.
The weekly chart looks similar. With a score of 46/100, Cardano is also in neutral territory. At least the Relative Strength Index is not giving a warning sign that ADA is now an overbought asset.
Bearish signs for Cardano’s forecast
Another popular indicator is the EMA Hash Ribbons. The bands describe the moving average price for different time periods. In general, a good time to buy altcoins is usually when the current price is above the EMAs.
Investors should be careful here. Although Cardano has broken above the EMA ribbons on the daily chart, it is still below the lower average price line on the more important weekly chart. This is a bearish sign. As long as ADA/USD fails to break the bands, which currently calls for a move up to $0.48, it looks like the bears will remain in control of the market.
The moving average price indicator of the last 200 days and last 50 days also does not show a bullish sign. The lines can cross in two directions and then analysts speak of a golden cross or a death cross. While the Golden Cross is considered a bullish sign, the Death Cross is more indicative of a bearish trend. The ADA/USD rate last recorded a death cross in June 2023 and no bullish golden cross is yet to be seen.
Will this formation take Cardano to $0.87?
Chart formations are also often used by traders to predict price developments. This is a possible bullish pattern for Cardano. Therefore, Ada/USD may have made a double bottom and is climbing in this formation to a technical price target around 87 cents.
However, ADA/USD would have to first break the high between the two lows in April 2023 at around $0.46. The course is still far from that. In addition, analysts do not agree on whether to include the so-called candle wick on the chart or only the closing price. If you choose the first perspective, the price in June 2023 was lower than in January of this year. However, a bullish double bottom actually assumes that the second low of the pattern is higher than the first.
Overall, from a technical perspective, there are currently few signs to suggest that a bull run is imminent. The question of whether Cardano is secure is still unresolved.
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