Cardano Price Forecast – Can ADA Blast Up to $1 This Week?
Cardano price is posting modest gains as investors shrug off FTX's Samuel Bankman-Fried (SBF) arrest. Investors are focusing more on the recently released United States inflation data and the Federal Open Market Committee's decision on the interest rate.
The ninth-largest cryptocurrency jumped by nearly 3% on Wednesday to trade at $0.31. ADA has attracted over $329 million in trading volume while its market cap holds at $10.90 billion.
According to Raphael Kim, the founder of Reframe, a crypto VC company in Seoul, investors expect the Fed to slow down on the tight measures used to combat inflation.
US inflation levels subsided in November, with the Consumer Price Index (CPI) up 7.1% year-on-year. This is the least gain in 11 months in addition to the 0.2% climb in the core CPI – up 6.0% year-on-year. Kim believes "this is the main trigger in the increase in prices.
Since November's second week, Cardano price has teetered between support at $0.30 and resistance at $0.33. Attempts by the smart contracts token to break these boundaries have been unsuccessful, leading to a longer consolidation period.
The presence of bulls in the market cannot be overemphasized, considering that they have recently pushed ADA above the lower trend line (in black). However, its upside momentum faded before confirming an uptrend above the second trend line (broken line). Reinforcing this resistance is the 50-day Simple Moving Average (SMA) (in red) at $0.32.
Another bullish breakout will likely occur if the positive outlook in the Moving Average Convergence Divergence (MACD) indicator holds in the upcoming sessions. More buyers will emerge from the sidelines as the MACD closes the distance to the mean line while moving into the positive region would
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