Cardano (ADA) started 2023 in an uptrend that retested the $0.2522 resistance level but has since failed to gather meaningful momentum to continue its run.
As written, Coingecko recording a slight increase of 0.2%. This may be a small gain, but it is a good indicator that investor sentiment has reversed at the start of this fiscal year.
Can the ADA Go Back?
Cardano in 2022 has been very bearish on the original token ADA. Even after its Vasil hard forkthe same event as the Ethereum Merge, the token still continues its downward spiral to the current price of $0.2491.
One of the reasons for the decrease in ADA prices is the current macroeconomic situation. During the first quarter of 2022, the US Federal Reserve rate increases until last month was the seventh rate hike in 2022.
This also has a negative effect on the market, causing the prices of traditional financial instruments and digital assets to fall. But 2023 seems to have a new impact on the struggling ecosystem.
Image: Coinmama
Cardano Fared Better Vs. competition
The last FTX debate deal a blow to the protocol or ecosystem associated with the failed exchange. Solana, as it is called “Coin Sam”, fell in value tremendously. According to recent news, Solana’s original token SOL has dropped so much that some say it is close collapsed.
according to Holy, ADA undervalued at the moment, shows the extreme exhaustion of the bear. Twitter users who are very bullish on Cardano share their metrics increase. with next time As the on-chain upgrade brings more features to the platform, investors in ADA may see more bullish action in the coming weeks.
Check it out #Cardano on-chain statistics. All up. pic.twitter.com/Q7pw44WTkA
— Cardano YODA (@JaromirTesar) January 1, 2023
With Solana down, the NFT market switch from Solana to Cardano. But, Cardano still have a long way to be even on par with Solana’s trade volume and value. ADA investors and traders can see the token break through the $0.2522 price resistance.
ADA total market cap at $8.7 billion on the daily chart | Chart: TradingView.com
A break in this price resistance level could be a sign of new life for the struggling ecosystem. In the long term, investors and traders should watch macroeconomic developments as these have a strong impact on the crypto market.
As the market recovers, ADA’s current price action could be the catalyst for a stronger bullish move. But, THERE IS volatility increase which, if the resistance of $0.2522 continues, it can lead to drops as low as $0.2397.
-Featured image: The Independent