After ranking as the top cryptocurrency protocol by development activity in 2022, Cardano (ADA) investors and traders alike will be keeping a close eye on the digital asset as it continues making strides with its ecosystem despite the crypto industry still struggling to recover as a whole in the aftermath of the FTX collapse.
The machine learning algorithms at the crypto tracking platform PricePredictions have predicted that the price of ADA on January 31, 2023, would stand at $0.2756, according to data retrieved by Finbold on January 6.
Utilizing technical analysis (TA) indicators, such as the relative strength index (RSI), Bollinger bands (BB), moving averages (MA), moving average convergence divergence (MACD), and others, the platforms artificial intelligence sees a 1.2% increase from the price of Cardano at press time.
Cardano price analysis
As things stand, ADA is trading at $0.2723, up 2.4% in the last 24 hours and a further down 12.2% across the previous week, with a total market capitalization of $9.3 billion.
After falling below $0.30 and hitting a low of $0.24 at the beginning of the year, Cardano’s price has increased. Price has retraced to $0.27, and if the rebound continues and ADA breaks resistance at $0.30, Cardano could overtake Dogecoin (DOGE) and become the eighth-largest cryptocurrency by market cap.
Traders who purchased ADA when it was bouncing off support at $0.24 are now collecting profits and placing pressure on the resistance level at $0.27. Despite this, it is not unusual for the price to have a reversal even as it rises upward. Since an inverted head and shoulders pattern is in the process of forming, investors may see a pullback as a chance to purchase more ADA at a lower price level in preparation for a further rise.
Meanwhile, TradingView’s TA indicators on 1-day gauges are mixed. The summary of the gauges aligns with the ‘neutral’ sentiment at 8, while moving averages point to a ‘sell’ at 8. Lastly, oscillators point towards ‘buy’ at 3.
Finally, the first quarter of 2023 is anticipated to see the launch of two stablecoins on the Cardano network: The first is the centralized stablecoin USDA, which will be an asset backed by the US dollar. The second is the much-anticipated stablecoin Djed, a token created in conjunction with Coti. Both of these have the potential to have a positive effect on the value of ADA.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
