Cardano Slumps Below $0.52 as Crypto Market Turns Red

Cardano fails to recover from crypto market correction, slides below US$0.52

Cardano's price increased significantly before falling sharply at the end of December. While it was a predicted course of action from the cryptocurrency, the current circumstance implies that the bearishness may not have entirely waned off, even though there is still an opportunity for ADA to expand. Let's dive deep into this crypto news.

Cardano price could be challenging

Cardano's price is now trading at US$0.52, having recovered from a two-day low. On the 3-day chart, ADA appears to be on track to extend its long-term uptrend that began in mid-October, as the third-generation cryptocurrency has maintained support from the 200-day Exponential Moving Average (EMA).

In addition, the uptrend line has served as support when the cryptocurrency successfully reached the goal price of US$0.68, as indicated by the chart's double bottom pattern. Despite the fall, this target price may be retrieved since it is 31% below the current price.

However, price indicators, particularly the Moving Average Convergence Divergence (MACD), are showing their first negative signal in almost four months. The negative crossing on the indicator, along with the probable adverse impact of capital moving into Bitcoin following the approval of the spot BTC ETF, might drive ADA lower.

The 200-day EMA coincides with US$0.46, so a test of that price is expected, but persistent bearishness might pull ADA down to US$0.41, which corresponds to the 50-day EMA.

Nonetheless, if Cardano's price rebounds off the US$0.46 support line and reclaims the US$0.55 resistance, it may have a chance of climbing to the objective of US$0.68. The US$0.60 level must be reversed into support to disprove the bearish argument.

Cardano indicator analysis

The cryptocurrency is at level 47 of the Relative Strength Index for the 14th period. It is now in a downturn and might tumble much worse. Cardano is trading below 40% of the daily stochastic. The ADA/USD pair is trending down. The 21-day and 50-day line SMAs are horizontally sloping, indicating a lateral trend.

What is the next step for Cardano?

Cardano's share price is moving sideways. Since May, ADA/USD has fluctuated between US$0.40 and US$0.60. In the previous 48 hours, the cryptocurrency has fallen from a high of US$0.52 to US$0.46. It has the potential to return to US$0.40. On March 28, the weekly chart showed a candlestick testing the 78.6% Fibonacci retracement line. The retracement indicates that ADA will decline and then reverse at the 1.272 Fibonacci extension level, or US$0.394.

Cardano Price Prediction for 2024

While the SEC has said in its actions against Binance and Coinbase that Cardano's ADA is a security (along with many other currencies), there has been no indication of what action they may take against the coin's issuers.

The SEC has abandoned the recent XRP case, and the SEC is anticipated to approve a Bitcoin ETF in 2024, while the Federal Reserve has indicated that interest rates would likely be reduced. This is even better news for the cryptocurrency markets, which appear to be emerging from a protracted crypto winter by the end of 2023.

Looking ahead to 2024, Cardano will usher in the Age of Voltaire, with the introduction of an on-chain governance system and treasury, and the blockchain will become completely decentralized., however, this implies that work will cease; Partner Chains, the privacy-focused Mithril protocol, and the Hydra state channel scalability solution are all scheduled for mainnet deployment in 2024.

With all of this great news, we anticipate a strong year for Cardano, with our Cardano price forecast estimating a price of US$0.95 by the end of 2024. Our ADA estimate indicates a maximum price of US$1.55 and a minimum price of US$0.45.