Cardano’s trend is clearly falling right now. In the last seven trading days, the ADA / USD rate has fallen more than 11 percent. Cardano’s correction is therefore much stronger than, for example, with Bitcoin and top altcoins such as Ethereum. So, is now the time to sell your ADA tokens or should a trader open a short position on crypto exchanges?
A look at the current chart development shows potential scenarios for another Cardano price trend. Also, the latest price projections from analysts show where the ADA/USD rate could be headed in the rest of 2023.
Cardano price weakens after 70 percent rally
It was what the bulls liked at the beginning of the year for Cardano. From a low of $0.25, the price of ADA exploded to $0.42. As a result, Cardano buyers saw a massive rally of almost 70 percent within a few weeks and reaped huge returns if they made the most of the dip to get in.
Cardano founder Charles Hoskinson was apparently in good spirits about the strong interest in buying his project and is reportedly considering a big investment. There is speculation on Twitter that Hoskinson is interested in taking over the CNN news channel as part of a joint venture. The rumor was Ross Calvin, an entrepreneur who, like Hoskinson, lives in Colorado, USA. The billionaire’s name was also associated with the planned investment.
Hoskinson deal rumors
But is that hot air? Hoskinson himself was not clear about this and told the court that he could neither confirm nor deny. This left room for speculation. However, this deal seems unlikely as CNN did not change ownership until 2022. None other than Warner Bros. has acquired the station. Discovery and sales would be surprising at this point.
This is not the first time Hoskinson has been linked to buying a media company. He was previously said to be interested in acquiring Coin Desk, one of the leading news platforms in the crypto space, which is currently up for sale. Behind it is the Digital Currency Group, which recently hit the headlines with rumors of liquidity problems at the Greyscale Bitoin Trust.
— LazerEYES (@lazereyes_) February 25, 2023
Cardano’s sales are in the billions of dollars
But Hoskinson’s mood to buy may have soured again. Due to last week’s strong correction, ADA/USD is only trading at around 0.36 dollars at the time of publication. Cardano’s market value also suffered badly from the correction, recording a billion dollar drop in market cap. Cardano is currently worth a good $12 billion and ranks 9th among the most valuable currencies.
Where could the next price targets for the Cardano course be? Looking at the daily chart of ADA / USD, Cardano broke an ascending support line in yesterday’s trade, which has been the main support during the year so far rally. This is a bearish sign.
The mentioned support line is also part of an ascending wedge formation in which ADA/USD has been moving for several months. If this is a valid pattern and the correction continues, ADA/USD could fall to a technical price target below $0.25 again – the starting point of the formation.
Will Cardano fall to $0.25 again?
Another bearish sign is that the correction brought the price of Cardano back into a descending parallel channel, with the ADA/USD support and resistance lines trading between them since May 2022. If Cardano manages to break through the resistance again, the support line could be tested again. However, this could also bring the course to a price level below $0.25.
However, if the test of support occurs at a later point in time, the price can drop much lower and therefore even fall below the low point from the 2022 bear market again. That’s probably the worst case scenario for all Cardano buyers who started the new year so well.
However, a bullish situation can also be discovered in the course of Cardano. The sell-off may only be a retest of the former resistance line of a falling wedge in which ADA/USD is moving from the 2021 bull market. In late January 2023, the price managed to break out to to the upside and confirmation as a new support zone was a good sign.
Bullish retest before pump to $1.45?
In this case, the price of Cardano may first fall to a price range of around $0.32 before continuing the rallies of the past few weeks. The wedged falling technical price target could pull ADA/USD to levels around $1.45. That would be about a 300 percent increase from the current price and would bring Cardano back to its highest levels since January 2022.
However, the correction could prevent a bullish chart signal. Because Cardano was about to make a golden cross. The average line of the course for the last 50 days crosses the average line of the course for the last 200 days from the bottom to the top. However, if the price of Cardano were to continue falling very quickly now, it would push the 50-day moving average down, so the golden cross does not necessarily happen. According to analysts, the golden cross often gives a longer promotion.
2023 Forecast: Cardano between $0.05 and $0.79
Bullish or bearish? What are the current price forecasts for Cardano additional trend in 2023?
Digital Coin Price thinks that the current sell-off will be over soon and that ADA/USD prices will rise dramatically in the coming months. Cardano price forecast for 2023 is $0.79. That would be an increase of about 120 percent on the current price and could make buying Cardano a very profitable investment.
Coin Price Forecast is more cautious in its expectations, estimating that Cardano will reach a maximum price of $0.46 this year. This would only be an increase of $0.1, or about 25 percent over the current rate.
Analysts at financial blog changelly.com are a bit more optimistic and see Cardano rising to around $0.62 in 2023. That’s an increase of $0.26, or around 75 percent from the current price.
On the other hand, Wallet Investor assesses the situation completely differently and expects a correction of up to $0.05. That would be a massive 86 percent price reduction.
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