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After Cardano (ADA) price subsequently corrected by 27 percent to USD 0.24 after abandoning the key support level at USD 0.33 in December, the price of the layer 1 ecosystem has gained significant ground since the beginning of the year. After recapturing the resistance at USD 0.27 and overcoming the supertrend in the daily chart, Cardano’s price momentum has gained significant momentum again in the last few days. Earlier in the week, ADA made a fresh 30-day high of $0.34 before consolidating back below the top of the falling wedge again. Cardano is currently trading on this important trend line (red). Some improvements to the Cardano blockchain, such as the Cardano Improvement Proposal (CIP) 1694, could give the price a further boost in 2023. Furthermore, a separate stablecoin under the abbreviation USDA and the introduction of its own privacy chain are planned for this year.
Time to take a closer look at the Cardano chart and identify possible price targets for the coming months.
Bullish price targets: $0.33/0.34, $0.40, $0.42/0.44, $0.47, $0.50/0.52, $0.56, $0.60, 0.65 $0.69/$0.70, $0.75
Cardano forecast: bullish price targets for the coming weeks
In order for the Cardano price to continue its bullish trend of 25 percent price increase in the last seven trading days, ADA must first confirm the breakout from the falling wedge and then break out above the horizontal resistance area (orange) at the end of the day. However, since the daily RSI indicator is already in overbought territory at 72, the breakout may be a few days away. However, the fact that the MACD has now generated a buy signal again after more than two months can be viewed positively.
If the bulls succeed in recapturing the USD 0.34 mark, a direct march through to USD 0.40 should be planned. This is where the distinctive low from May 2022 runs. This price level acted as important support several times in 2022, which is why it is now classified as relevant resistance. Therefore, this price level acts as the first short-term target for the bulls. A recapture will then focus on the red resistance area between USD 0.42 and USD 0.44. Since July 2022, this area has repeatedly acted as a neuralgic zone for investors. First as a support, then later as a resist. Most recently, investors failed to recapture this area at the beginning of November. The EMA200 (blue) also runs in this zone, which again increases the relevance of this price level. A price bounce is therefore very likely.
Will Cardano achieve a sustainable turnaround?
Only when the buyer side succeeds in breaking through this resistance with increasing trading volume will the market structure break gain momentum and the Cardano chart image will continue to brighten. If the golden pocket at USD 0.47 can then also be overcome dynamically, and the superordinate 23 Fibonacci retracement can thus be broken through, the interim high from September 2022 will come into focus for investors. The purple zone between USD 0.50 and USD 0.52 should be viewed as a medium-term upside target. Only if the overall market also recovers could Cardano then continue to increase in value and march through the USD 0.55 to the last significant high from August of the previous year at USD 0.59. Investors are likely to reap profits here.
This puts the zone around USD 0.65 back in the focus of the bulls. If the ADA price recaptures this price level without any significant setbacks, the price recovery will continue to expand to around USD 0.69. In the long term, a further rise in price in the direction of the cross-resist from the old edge of May 10, 2022 and the 50 Fibonacci retracement at USD 0.75 would not be ruled out. Whether Cardano can also pulverize this resistance level depends largely on the development of the Bitcoin price and the stock market in the USA. Only if there is a positive development here as well could the ADA price rise to the maximum target mark of USD 0.90. This is made up of the higher-level Golden Pocket and the price high from the beginning of May of the previous year.
Bearish price targets: $0.29, $0.26, $0.24, $0.19, $0.13, $0.11
Cardano forecast: Bearish price targets for the coming weeks
The bears have had to let the bulls take the helm for the time being over the past few days. However, as long as the ADA price does not stabilize above the red downtrend line and regain the orange area, renewed price weakness is conceivable at any time. A first indication can be seen in a renewed fall below the price mark of USD 0.29. If this area and thus also the EMA50 (orange) are undershot again, the short-term positive chart picture will cloud over again. A relapse into the wedge would confirm this. This would make a false breakout increasingly likely. If Cardano then corrects back below USD 0.26, a directional decision is made in the area of the low at 0.24.
New annual lows are coming into view
If the bulls cannot counter this and the ADA price slips to new lows at the end of the day, another sell-off down to the gray zone between USD 0.20 and USD 0.17 should be planned. At least the lower edge of the wedge also provides some support here. In this area, the buyer camp must take heart and stabilize the course of Cardano. If the attempt at a recovery movement also fails here, a fall back to the maximum bearish target price of USD 0.13 can no longer be ruled out. Even a short spike up to USD 0.11 would be conceivable. However, such a strong price slide into this chart region is only conceivable with a simultaneous sell-off of Bitcoin in the direction of USD 13,800. For now, the market seems to favor a run towards $0.40. This attempted increase could be additionally fueled by further falling US inflation numbers next Thursday (January 12).
