Cardano (ADA) started 2023 with an uptrend that retested the $0.2522 resistance level but has since failed to gather significant momentum to sustain the run.
At the time of writing, coingecko is up a meager 0.2%. This might be a small gain, but it’s a good indication that investor sentiment has turned around earlier this fiscal year.
Can ADA recover?
Cardano has been very bearish in 2022 in relation to its native token ADA. Even after his Vasil Hard forkan event that is compared to that Ethereum Merge, the token continued its downward spiral to its current price of $0.2491.
One reason that has pushed the price of ADA down is the current macroeconomic situation. The US Federal Reserve in the first quarter of 2022 increased rates until last month, which is the seventh rate hike in 2022.
This, in turn, had an adverse impact on the market, pushing down the price of both traditional financial instruments and digital assets. But 2023 seems to have a new impact on the struggling ecosystem.
Cardano performed better than competitors
The current FTX debacle dealt a blow to any protocol or ecosystem associated with the failed exchange. Solanaa touted one “Sam coins”, lost enormously in value. According to recent news, Solana’s native token SOL has fallen so much that some say it is approaching collapse.
Corresponding mood, ADA is currently undervalued, showing extreme bear exhaustion. Twitter users who are very optimistic about Cardano share these metrics increasingly. With the upcoming On-chain upgrade bringing more features to the platform, investors on ADA could see more bullish action in the coming weeks.
Check the on-chain stats of #Cardano. Everything works. pic.twitter.com/Q7pw44WTkA
— Cardano YODA (@JaromirTesar) January 1, 2023
With Solana that is NFT-Market on the ground shift from Solana to Cardano. However, Cardano There is still a long way to go before equality Solanas trading volume and value. ADA investors and traders could see the token breaking the $0.2522 price resistance.
ADA Total Market Cap at $8.7B on the Daily Chart | Chart: TradingView.com
A break of this price resistance level could be a new sign of life for the ailing ecosystem. In the long-term, investors and traders should keep an eye on macroeconomic developments as these have a strong impact on crypto markets.
If markets recover, ADA’s current price action could be a catalyst for a stronger move higher. However ADA volatility rises what if the Resistance from $0.2522 can lead to dips as low as $0.2397.
-Featured image: The Independent
Source: Crypto News Deutsch