Cardano Price Prediction for 2023: New ATH for ADA?

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In this Cardano (ADA) Price Prediction for 2023, we will analyze the ADA price patterns by using accurate and trader-friendly technical analysis indicators and also predict the future movement of this cryptocurrency.

Current state of the Cardano (ADA) market

Current Price$0.444224-Hour Trading Volume$426,244,46524-Hour Price Change0.27% DownCirculating Supply34,777,456,191Highest Point$3.09 (As of Sep 2, 2021) ADA Current Market Status (Source: CoinMarketCap)

What is Cardano (ADA)?

Cardano (ADA) it is the native token of the Cardano blockchain. This sustainable blockchain uses the proof-of-stake (PoS) consensus mechanism, Ouroborus. This “third generation blockchain” initially existed as a layer 1 solution. Finally, the layer 2 upgrade, Hydra, was integrated into the existing network in late 2021.

Cardano has been built as an enhanced version of the Ethereum smart contract network. Furthermore, it aims to scale the permissionless nature of the DeFi space and aid the mission of banking the unbanked.

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Cardano (ADA) Price Prediction for 2023

Cardano (ADA) is ranked seventh on CoinMarketCap in terms of market capitalization. The overview of Cardano price prediction for 2023 is explained below with a daily time frame.

ADA/USDT Cup and Handle Pattern (Source: TradingView)

On the chart above, Cardano (ADA) featured a cup and handle pattern. In this pattern, the price movement forms a U-shaped cup and then a subsequent downward price drift forms a handle. Significantly, this pattern is a characteristic of an uptrend.

If the price breaks through the neckline resistance and moves towards the uptrend, the bullish pattern is expected to continue.

At the time of analysis, the price of Cardano (ADA) was recorded at $0.4442. If the trend of the pattern continues, then the price of ADA could reach the resistance levels of $0.4508 and $0.8205. If the trend reverses, then the ADA price may fall to the support at 0.2956.

Cardano (ADA) support and resistance levels

The chart below clarifies the possible resistance and support levels of Cardano (ADA) in 2023.

Cardano (ADA) support and resistance levels.ADA/USDT Support and Resistance Levels (Source: TradingView )

From the chart above, we can analyze and identify the following Cardano (ADA) resistance and support levels for 2023.

ADA support and resistance levels:

Level 1 Resistance $0.5264 Level 2 Resistance $0.6557 Level 1 Support $0.4240 Level 2 Support $0.2981

Based on the analysis above, if Cardano (ADA) bulls get the upper hand, then it could hit and break its resistance level of $0.6557.

Conversely, if Cardano (ADA) bears dominate the trend, ADA price could drop to $0.2981.

Cardano (ADA) Price Prediction for 2023: RVOL, MA and RSI

Technical analysis indicators such as Relative Volume (RVOL), Moving Average (MA), and Cardano (ADA) Relative Strength Index (RSI) are displayed on the chart below.

Cardano (ADA) Price Prediction for 2023: RVOL, MA and RSIADA/USDT RVOL, MA, RSI (Source: TradingView)

The Relative Volume (RVOL) technical analysis indicator is used to measure the trading volume of an asset relative to its recent average volumes. It is usually calculated by dividing the current day’s trading volume by the average volume over a specific period, such as the last 20 or 50 trading days. Additionally, it helps traders identify unusual trading activities and changes in market sentiment.

At the time of analysis, the RVOL of Cardano (ADA) was below the cutoff. Therefore, it denotes a weak volume of participants trading in the current trend.

The next technical indicator is the moving average (MA). This momentum indicator is used to smooth out price data and identify trends in the market. It helps to calculate the average price of an asset during a specific period. In particular, the 50-day moving average (50 MA) evaluates the average closing price of the asset over the last 50 days. When the price of an asset is above 50MA, it is considered to be in an uptrend (bullish), and if it is below 50MA, it is in a downtrend (bearish).

In particular, in the above chart, the ADA price is above 50 MA (short term), which indicates its bullish trend. Therefore, ADA is in a bullish state. Although this is the current state, a change in trend could occur.

Next up is the Relative Strength Index (RSI). Significantly, this analysis indicator helps traders determine the strength and momentum of an asset’s price movement over a specific period. In this analysis, the RSI is calculated by comparing the asset’s average gains and losses over the last 14 periods. The resulting value is between a range of 0 and 100. Therefore, readings above 70 indicate an overbought state and below 30 indicate an oversold state.

Significantly, traders often use the RSI to identify potential trend reversals or to confirm the direction of the trend. For example, if an asset is trending up and the RSI reaches an overbought reading of 70, it may suggest that the asset needs to pull back or correct. Conversely, if an asset is trending down and the RSI has an oversold reading of 30, it can suggest a potential reversal.

At the time of analysis, the RSI of ADA is at 69.15. Therefore, this indicates that ADA is neither an overbought nor an oversold state and is about to fall into the overbought state.

Cardano (ADA) Price Prediction for 2023: ADX and RVI

In the chart below, we analyze the strength and volatility of Cardano (ADA) using the following technical analysis indicators: Average Directional Index (ADX) and Relative Volatility Index (RVI).

To analyze the strength of the trend’s momentum, let’s take note of the average directional index (ADX). The ADX value is derived from the two Directional Movement Indicators (DMI) as +DI and -DI and is expressed between 0 and 100.

Based on the data on the chart above, the ADX of ADA is in the range of 39,796, indicating a strong trend.

The above chart also shows another technical indicator: the relative volatility index (RVI). This indicator measures the volatility of an asset’s price movement over a specified period. Regarding the data on the chart, the RVI of ADA is above 50, indicating high volatility.

Comparison of ADA with BTC and ETH

Let us now compare the price movements of Cardano (ADA) with those of Bitcoin (BTC) and Ethereum (ETH).

Comparison of ADA with BTC and ETH.BTC Vs ETH Vs ADA Price Comparison (Source: TradingView)

From the chart above, we can interpret that the price action of ADA is similar to that of BTC and ETH. That is, when the price of BTC and ETH increases or decreases, the price of ADA also increases or decreases respectively.

To end…

If Cardano (ADA) establishes itself as a good investment in 2023, this year would be favorable for the cryptocurrency. In conclusion, the bullish Cardano (ADA) price prediction for 2023 is $0.6557. Comparatively, the bearish Cardano (ADA) price prediction for 2023 is $0.2981.

If there is a positive lift in market momentum and investor sentiment, then Cardano (ADA) could go as high as $1. Furthermore, with future updates and advancements in the Cardano ecosystem, ADA could surpass its current all-time high (ATH) of $3.09 and mark its new ATH.

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