Cardano Price Forecast: Can ADA Reach $3 This Year?27. February 2023
• The Cardano cryptocurrency ADA/USD is coming under selling pressure on Friday due to a hotter-than-expected US inflation report.
• ADA is testing an uptrend that has been in play since the end of 2022, and its 50DMA just under $0.37.
• With US inflation remaining sticky at elevated levels and the economy still humming along nicely, the outlook for a significant easing of financial conditions isn’t great.
Cardano Price Forecast
The cryptocurrency that powers Cardano’s smart-contract-enabled layer-1 blockchain protocol, ADA/USD was last changing hands in the $0.37s, down around 1.5% on the day with crypto weighed by downside in US stocks and upside in the US dollar and yields in the wake of a hotter-than-expected US inflation report.
Current Technical Levels
ADA’s latest decline means it is now over 10% below earlier monthly highs in the $0.42s and is back under its 200-Day Moving Average at $0.3815. Cardano is now at a technical crossroads and today’s close will be key as it tests an uptrend that has been in play since the end of 2022 with its 50DMA just under $0.37, if broken then a drop back to a recent double bottom in the $0.35 area seems likely but if resisted then there could be another retest of recent highs in the $0.42 area would become more likely..
Impact Of Inflation On Crypto Markets
The PCE Price Index report for January was released earlier on Friday and revealed a larger-than-expected jump in MoM core inflation to 0.6% from 0.4% in December, which was also revised higher from the previous estimate of 0