Since its introduction to the crypto sphere, Cardano has met with widespread support and experienced a colossal rise in price. Although the 2022 market crash pushed down the price of ADA to lows, 2023 came in with the hope of a new bullish run. The crypto has been creating a buzz in the DeFi sphere with its upcoming stablecoin launches and event updates in the pipeline.
Despite all these, Cardano has seen a recent plunge, and investors are curious to know if ADA’s price would maintain support even after the negative PR issues. Let’s see the recent Cardano price prediction to make an informed decision.
ADA’s Recent Plunge Due To The Negative PR
Cardano's price has experienced a notable decline below its $0.388 support level in the past few days. This plunge was caused by the rise of a negative PR that stemmed from an open letter posted by a Reddit user under the name Demesisx. The letter accused the founder Charles Hokinson of having alt-right sympathies and creating misleading statements about the technology behind the crypto.
Although Hoskinson reverted to the accusations by positing the letter and pushing back, this negative PR has put ADA in a potentially bearish zone as it currently trades at $0.336244. The exchange further sparked a massive social media debate. A group of investors is also concerned about the negative impact this could have on Cardano’s reputation within the crypto sphere.
ADA Price Fundamental Analysis And Background
Cardano is one of the best energy-efficient cryptocurrencies that offers a quick and scalable platform for creating decentralized apps (dApps) and smart contracts. In addition, ADA stands out from the crowd with its notable real-world use cases across verticals.
Although PR challenges are causing a major stir in ADA’s price rally, this could soon fade away as the prices could go up due to other macroeconomic factors like network upgrades, the wider cryptocurrency market, and an increased adoption rate.
A unique feature of this crypto is that it has often made progress in giving monetary administrations to denied networks, especially in developing nations. Africa is one of the biggest examples of a country affected by corruption and inflation. ADA has made significant strides in this market, providing secure digital education records in Ethiopia, creating supply chain solutions for the coffee industry, developing mobile internet access in Zanzibar, and facilitating decentralized governance.
ADA’s Price Prediction And Technical Analysis
Cardano followed the general bullish trend of the entire crypto sphere at the beginning of the year, with its price rising from $0.33 to $0.38. Cardano price prediction with key metrics and indicators will help investors give a detailed outlook on the crypto’s rally in 2023.
The 100-day EMA is at $0.3608, the 50-day EMA is at $0.3664, and the 20-day Exponential Moving Average (EMA) is at $0.3759. A neutral trend is currently being indicated by the RSI's reading of 45.42. Although the trend remains neutral, a glimpse at the MACD indicator suggests a slight upward momentum in the short term. The previous day’s MACD histogram was -0.0057, while the current day’s histogram was -0.0052.
However, ADA’s immediate resistance stays at $0.43, its swing high level. To establish another upward trajectory, the price should hold within the immediate support range of $0.3487 to $0.3579. Experts say that as long as the price remains below the $0.3800 resistance zone, there are chances of ADA moving further downward in the short to medium term; while falling below the crucial support area can result in a prolonged bearish trend.
In general, Cardano’s technical indicators expose a neutral trend, and the strong potential for a slight upward momentum cannot be denied. Experts advise investors to closely watch ADA’s momentum to determine the next direction of its price movement.
Is Cardano Ready For A Rebound?
Despite all the negative PR and stepbacks, investors are still curious to know if ADA is set for a bullish rally in 2023. The crypto started the year on a stellar note with its plans to expand into the DeFi sector, the upcoming launch of stablecoins, and a series of major updates in the pipeline.
The team has confirmed a major update on the much-awaited Hydra Protocol, which will be launched soon, in 2023. Hydra, the layer-2 scaling solution of Cardano, would boost the transaction speed through low latency and high throughput along with providing minimized transaction cost.
Another positive catalyst for ADA’s price rise is the upcoming launch of its two new stablecoins, the USDA, a US dollar-backed asset, and OST, a euro-backed asset. The launch of its overcollateralized stablecoin, DJED, on the Cardano blockchain has opened a means for new DeFi and payment opportunities for users. Eventually, ADA will affirm its position in the DeFi sector, making it one of the best crypto to buy for future returns.
Cardano has always been known for its consistent development activities and is one of the fastest-growing altcoins in the market due to this reason. It continues to rank among cryptocurrencies with the highest development activity on GitHub. Given all these developments and updates, there is a best-case scenario where ADA could hit the target of $1 in 2023.
As the crypto market is slowly rebounding from its 2022 bloodbath, there is a great chance that potential altcoins like Cardano will restart their bullish trend in 2023. Investors and experts are relatively bullish and believe that ADA’s price could maintain support after the Negative PR, considering all the development activities in the pipeline.