Cardano Price Prediction: ADA Buy Signal Points To A 13% Uptick

Updated: 19 May 2023

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

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Cardano (ADA) is trading at $0.369 with a bearish bias, down 1.76% on the day. The altcoin has been displaying a choppy price action over the last 10 days, locked within a key zone. While the recent performance looks drab, a bullish signal from a significant technical indicator is likely to scale Cardano higher.

Cardano Readies For An Upward Move

ADA price dropped nearly 24% from $0.461 to $0.350 between April 14 and May 11. This drop suggested that a local bottom could occur inside the buy zone, stretching from $0.360 and $0.377.

Note that Cardano has previously launched recoveries from this area several times in the past as shown on the daily chart below. The first was in January when bulls pushed ADA 15% above the lower limit of the demand zone to set a swing high at $0.414.

The second time was in mid-February when the Layer 1 token rallied over a two-day period, recording a 17% rally from $0.360 to $0.422. The latest scenario was when Cardano lifted off from this area staging an impressive 28% recovery between March 28 and April 15.

As can be seen in the chart, Cardano appears to have once again perfectly respected this zone and has recovered 3.24% at the time of this writing.

Despite the ongoing pullback, traders have an opportunity to open long positions before ADA triggers a bullish move, as it still trades within the same zone.

If this bullish development for ADA plays out as expected, the targets include $0.377 and $0.393 where the 100-day and 50-day Simple Moving Averages (SMAs) sit respectively.

Shattering these barriers would open the way for a rise toward the $0.42 range high. This would present a 13.76% uptick from the current price.

ADA/USD Daily Chart

Cardano Price Chart - May 19 — TradingView Chart: ADA/USD

Apart from the significant buy area, the position of the price above another major SMA also supported Cardano’s positive outlook. This was the 200-day SAM which sat at $0.351, which could add on to the demand pressure required to scale ADA higher.

Further adding credence to this bullish outlook for Cardano price is the Moving Average Convergence Divergence (MACD) indicator, which had just sent a buy signal on the daily chart. This happened Thursday when the 12-day Exponential Moving Average (EMA) crossed above the 26-day EMA, suggesting that the market had flipped in favor of the upside.

Note that Cardanao’s recovery will gain strength once the MACD crosses the neutral line into the positive region.

On the downside, the Relative Strength Index (RSI) was facing down. The price strength at 44 suggested that there were still more sellers than buyers in the market.

As such, Cardano price could turn down from the current price to seek solace from the lower limit of the demand zone at $0.36. Breaching this support would see Cardano drop first toward the 200-day SMa at $0.351 and later to the $0.30 psychological level.

It should be remembered that the price has made a similar move in the past, recording a 21% decline from the said zone.

Alternatives To ADA

Traders looking to go long on ADA must wait for a decisive close above $0.377, while short sellers should look out for a clear breakout below $0.360. While waiting for this to happen, investors can look into new cryptocurrencies in presale with the potential to make 10x returns in 2023.

One of these cryptos is Copium, an ERC-20 token with a 1 billion total supply, which was launched on Uniswap at 16:00 UTC on Thursday, May 18.

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The project has also advertised an upcoming NFT drop and airdrop awarded to the top 200 holders of the token.

The native token of the project $COPIUM currently trades at $0.00885, with a 24-hour trading volume of over $41.2 million.

The Copium token reached an $8.2 million market cap in less than 24 hours of its Uniswap listing, and currently has over 2,500 holders.

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