Cardano Price Prediction: Technical Analysis Supports a Rise to $0.50 – What’s Fueling This Optimism?
Cardano (ADA) is pulling back on Friday after hitting its highest level since April on Thursday near $0.41 per token.
ADA was last changing hands around $0.36, about 11% down versus weekly highs, but is still holding onto impressive gains of around 50% from the mid-October lows under $0.24.
Cardano has been pumping tandem with a broader rally across the crypto market, the main catalyst of which is largely agreed to be optimism about expected upcoming approvals of spot Bitcoin ETFs in the US, which should spur institutional adoption of cryptocurrencies more broadly.
Macro conditions have also taken a turn for the better this month, with US stocks pumping and US bond yields and the dollar dumping on bets the Fed will start cutting interest rates in mid-2024 as inflation and the economy slows.
As such, despite the recent pullback, dip buyers have been able to hold Cardano above its major moving averages in recent weeks, including its 21-Day Moving Average (DMA), which was last at $0.344.
With technical analysis suggesting a potential near-term pump to the north of $0.50, price predictions are likely to remain bullish.
Bullish Price Predictions – What’s Fuelling the Optimism?
A few key recent technical developments have fuelled optimism that Cardano could soon surpass $0.50.
Firstly, back in October, the cryptocurrency broke convincingly to the north of a downtrend that had been in play going all the way back to early 2022.
It then proceeded to decisively break above its 200DMA, often viewed as a sign that an asset classes’ near-term momentum has taken a substantial turn for the better.
Cardano is also likely to enjoy a bullish “golden cross” where its 50DMA crosses above its 200DMA.
A near-term test of 2023 highs at $0.46 seems
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