Cardano (ADA)Price Struggle To Push Beyond $0.42; Is a Reversal Imminent?

The Cardano (ADA) network continues to hold the eighth position by market capitalization despite the year-long bear market. The proof-of-stake secured blockchain has over 325k holders and approximately $115 million in total value locked (TVL), according to on-chain data. Having gained around 44 percent during the first month of 2023, ADA price dropped approximately 3.23 percent in February.

January Gains At Stake

With Cardano’s price trading 50 percent below the 2017/2018 ATH, the ADA bulls must defend the new year’s rally to minimize future losses. Moreover, looming crypto regulatory scrutiny from the United States Securities and Exchange Commission (SEC) on the staking programs has reduced Cardano’s prospects in the near future. 

Nevertheless, the Cardano ecosystem continues to attract DeFi and NFT developers to tap into its scalable smart contract technology. Reportedly, the Cardano network has facilitated over 1.9 million NFTs. Additionally, decentralized exchanges, including WingRiders, MuesliSwap, and Minswap, have committed millions of dollars to scale on the Cardano network.

Cardano ADA Price Analysis

According to the daily ADA/USD derivatives chart, the January gains are at stake of being obliterated. A possible reversal pattern could be forming on the higher time scale if the current support level lacks to hold on. Trading around $0.36 on Monday, the 50 and the 200 Moving Averages are so close to either forming a death or golden cross. 

Notably, should the 50 and 200 MAs on ADA price not cross on the daily time frame, the death cross that began in late 2021 will sustain. Otherwise, if the two MAs cross on the daily time frame, analysts expect the ADA price to rally further in the coming weeks.

Notably, the daily Cardano RSI indicates a possible price reversal in the near future. While the Cardano price on the daily timeframe has been pushing higher highs on a flat base, the RSI indicator has been showing a falling divergence while typically proceeding with a correction.

The Cardano (ADA) network continues to hold the eighth position by market capitalization despite the year-long bear market. The proof-of-stake secured blockchain has over 325k holders and approximately $115 million in total value locked (TVL), according to on-chain data. Having gained around 44 percent during the first month of 2023, ADA price dropped approximately 3.23 percent in February.