Cardano Price Forecast as ADA Loses Grip on $0.38 Level – Can ADA Reach $3 This Year?

cryptonews.com:

ADA, the cryptocurrency that powers Cardano’s smart-contract-enabled layer-1 blockchain protocol, is coming under selling pressure on Friday in tandem with broader cryptocurrency markets. 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 wake of a hotter-than-expected US inflation report.

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 0.3%. The latest data has triggered fears that the Fed might have to raise interest rates higher for longer, hence the risk-off reaction in crypto and traditional asset classes.

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.

ADA is currently testing an uptrend that has been in play since the end of 2022. If it breaks below this trend line and its 50DMA just under $0.37, then a drop back to a recent double bottom in the $0.35 area seems likely. However, if the crypto bulls regain control and can push ADA to close Friday’s session back above the 200DMA, then a retest of recent highs in the $0.42 area would become more likely.

The Cardano ecosystem will almost certainly continue to grow in 2023, thanks to its large and dedicated community of supporters and developers who continue to launch useful new protocols on the blockchain, including most recently the overcollaterized algorithmic stablecoin Djed. Assuming that cryptocurrency markets continue