The crypto market has seen a slight increase in the last 24 hours. Inflation figures published yesterday for the US at 6.4 percent in January 2023 were below analysts’ expectations, who issued a forecast of 6.2 percent. Apparently, however, investors still viewed the development as positive, since the trend of the last few months has been confirmed and the inflation rate is decreasing at least slightly (-0.1 percent compared to the previous month ).
While the Bitcoin price was able to rise above $22,000 again and thus recorded an increase of about 2 percent, top altcoins such as Ethereum or XRP (each about + 3 percent) were able to grow even more. However, among the top 10 cryptocurrencies by market cap, another coin stands out. The Cardano course rose almost 7 percent within 24 hours, recording the strongest growth among the top 10.
Cardano token on par with XRP
ADA/USD is currently trading at more than $0.38. Interestingly, buying ADA tokens costs almost as much as buying XRP tokens. In the crypto ranking, the two coins are also in 7th and 8th place, one behind the other. However, XRP is still clearly ahead in terms of market capitalization. XRP is worth more than $19 billion in total, while Cardano’s market cap is just over $13 billion.
With the current increase, Cardano confirms the upward trend of the last few weeks. From the lows below $0.24 hit at the end of December 2022, ADA/USD is already up more than 58 percent. However, the current price is still below the high for the year of a good 0.41 dollars, reached on February 2nd. Can Cardano clear this hurdle now and continue the rally towards $0.5? Or is there a threat of a sell-off with a major correction?
Cardano could be up 25 percent in chart patterns
Krypotszene.de analyzes current chart developments and technical indicators to obtain information on possible short-term price targets. Also, see the latest predictions for the price of Cardano in 2023.
Looking at the 4-hour mini chart of ADA/USD, the price is continuing to move higher in a rising wedge formation. ADA last successfully tested the ascending support line as support around $0.345 on Monday and there is now potential to move higher in the gel. In theory, Cardano can still reach prices of around $0.475 in the chart pattern. Compared to the current price, there is potential for a further rally of almost 25 percent.
However, according to technical analysis, the falling wedge is a bearish pattern and a downward correction is considered more likely. The technical price target would be at the base of the formation, which could allow ADA/USD to retest the 2022 annual low around $0.24. However, if ADA/USD on the upside strongly breaks the resistance currently located around $0.42, the rally could take ADA to technical price targets in the $0.6 region.
A 60 percent return is possible with the purchase of Cardano
This means that investors who buy Cardano now could, at best, achieve returns of around 60 percent based on the current price. Of course, experienced traders who trade with leverage on crypto exchanges have even higher return opportunities. With 10X leverage, a 600 percent profit could be achieved in the best case scenario. However, trading with Altcoins is very risky due to the high volatility and is not recommended for inexperienced investors. Finally, the most likely scenario for this chart pattern is a breakout to the upside. In the worst case scenario, poorly placed trades or over leverage can lead to a total loss if you do not protect your position with a stop loss.
A stronger rally from Cardano could also slow as there is some relevant resistance on the way to $0.6. Therefore, ADA would have to break the resistance levels at $0.40, $0.44, $0.48, $0.52, and $0.55 to reach $0.6. Because Cardano has tested these zones several times in the past as resistance and support zones.
However, the daily chart for Cardano looks good. The altcoin managed to break out of a falling wedge – a bullish chart pattern – and could continue this rally for a long time. Because the technical price target of the formation is around $1.5 for the ADA/USD rate. That represents almost 300 percent growth at the current rate.
Worst case scenario: Falling to $0.15 for Cardano
However, the falling resistance line was not retested as new support as a cause for caution. So there is a risk that ADA/USD will correct again in the coming weeks. In theory, this confirmation of the breakout can still happen until the end of July 2023. During this time, however, Cardano could also fall to lower prices of up to 15 cents. Clearly this would still fall below the annual low of 2022 and ADA would correct 60 percent in this bearish scenario.
What do the chart indicators say about the current price of Cardano? The Relative Strength Index shows that Cardano is currently in a neutral zone with a value of around 56 so it is not currently under high buying or selling pressure. This could argue that the price would consolidate at current levels before the market makes a directional decision.
Additional technical signals look positive overall for the ADA/USD rate. So, on January 14, the Hash Ribbons showed a buy signal for ADA. Also, the price is above the EMA ribbons on the daily chart and could now be used as support for further increases, as is usual in a bull market. However, no Golden Cross can be seen yet, which is considered as another bullish indicator.
The Digital Coin Price 2023 forecast remains bullish. The analysts are expecting prices up to 0.84 dollars for ADA this year. However, the price is rising to a maximum of $0.47 this year. The financial blog changelly.com estimates the maximum price for Cardano in 2023 at around $0.56. According to all 3 analyst opinions, Cardano buyers can still expect rising prices this year.
Buy fight tokens out in the presale
A profitable investment in 2023 could be the new crypto project Fight Out. The developers are picking up on the Metaverse trend and want to take advantage of the potential of the fitness market in the virtual space. To do this, they work together with fitness experts. FGHT, the native token of the new platform, can currently be purchased in the pre-sale until March 31st.