Stronger-than-expected US ISM Service PMI data that points to a resilient US economy midway through the third quarter and, alongside last Friday’s stronger-than-expected US labor market figures, keeps pressure on the US Federal Reserve to continue with its policy of aggressive rate hikes into 2023, weighed on risk appetite and cryptocurrency prices on Monday. ADA was no exception.

The native cryptocurrency of the Cardano blockchain was last changing hands around 1.5% lower on the day and was down about 1.8% in the last 24 hours as per CoinMarketCap. ADA/USD was last trading in the $0.31s, having been nearly as high as $0.33 earlier in the session. The recent drop marks a bearish breakout from the upwards trend channel that ADA/USD had been moving higher within over the last few days. As a result, near-term price predictions have become less bullish.

Cardano is still about 7.5% up versus its November lows, but its failure to hold sustainably above its 21-Day Moving Average (around current levels) isn’t a good sign. With ADA still locked within a long-term downtrend that has been in play since summer, it looks likely ADA/USD may soon be headed for fresh annual lows back under the $0.30 area.

ADA’s price saw explosive growth from 2020 into early 2021. From its 2020 lows to 2021 highs, Cardano’s price surged as much as 18,000%. In that regard, traders shouldn’t regard the prospect that 2023 could see a rapid surge back to record highs above $3.0.

Cardano’s fundamentals remain solid, with the network running as strong as ever and ranking as one of the most decentralized and developed in the crypto space. But macroeconomic conditions will need to be right. That doesn’t mean necessarily mean a strong economy.

2020 was the year that