- The price of Cardano (ADA) has risen more than 12% over the last 24 hours.
- ADA’s daily trading volume has surged 177.28% according to CoinMarketCap.
- The upcoming Fed interest rate announcement may negatively impact ADA’s price.
Cardano is a proof-of-stake (PoS) blockchain platform designed to act as an efficient alternative to proof-of-work (PoW) networks. Recently, accusations have been made on Twitter that Cardano is too centralized, with its parent company Input Output Hong Kong (IOHK) set up in such a way that it will always have control over the network.
The recent turmoil in the traditional financial market has seen several banking giants including Credit Suisse, which had to be sold. Despite the turbulence in the traditional financial markets, the crypto market seems to be holding fine.
The founder of Cardano (ADA), Charles Hoskinson recently shared an anecdote involving his experience with the now-struggling bank. According to the founder, Credit Suisse refused to open an account for Hoskinson back in 2014, back when he was the CEO of Ethereum (ETH) and lived in Switzerland.
Hoskinson was apparently told that cryptocurrencies were too dangerous and unstable to work with, according to the founder who shared his experience with Credit Suisse in a podcast streamed on March 20.
Cardano (ADA) Current Market Standing
Cardano (ADA) is ranked as the seventh biggest project in terms of market cap, according to CoinMarketCap. It experienced a 24-hour price gain of 12.67%, taking its price up to $0.3805 at press time. The Ethereum-killer’s market cap currently stands at $13.212 billion.
Meanwhile, ADA’s 24-hour trading volume currently stands at $848.081 million following a 24-hour increase of 177.28%. Furthermore, the price of ADA is nearer to its 24-hour high at $0.387. The altcoin’s daily low stands at $0.3318.
The 24-hour rise in ADA’s price has flipped the altcoin’s weekly performance into the green. As a result, ADA’s price is up more than 10% over the last 7 days.
Cardano (ADA) Technical Overview
4-hour chart for ADA/USDT (Source: TradingView)
The price of ADA has broken out of the consolidation channel between $0.3201 and $0.3652 on the 4-hour chart yesterday. In the candles that followed, ADA’s price was also able to flip the resistance level at $0.3822 where it seems to be forming a peak at press time.
A bullish technical flag was triggered on ADA’s 4-hour chart yesterday afternoon with the 9 EMA line on the 4-hour chart crossing above the 20 EMA line on the 4-hour chart. Currently, the altcoin’s price is trading above the two EMA lines after breaking above the two levels yesterday.
The RSI indicator on ADA’s 4-hour chart suggests that ADA’s upward move over the last 24 hours is losing steam. At press time, the RSI line is in overbought territory and has lost its positive slope.
There is also sell pressure present on ADA’s chart as indicated by the wicks present above today’s 4-hour candles. Should this sell press overcome the current buy support for ADA, the ADA’s price will likely drop to the previously-mentioned price level at $0.3822.
On the other hand, should bulls successfully fend off the pressure from bears today then ADA’s price will make a move toward the next resistance level on the 4-hour chart at around $0.4043.
Daily chart for ADA/USDT (Source: TradingView)
The bearish chart pattern that formed on ADA’s chart in the last week influenced ADA’s price somewhat on Monday, which resulted in ADA’s price dropping to a low of $0.3305.
Similar to the 4-hour chart, ADA’s price has broken above the 9 and 20 EMA lines on the daily chart. This also resulted in the 9-day EMA crossing above the 20-day EMA line – signaling that ADA’s price is in a short-term bullish cycle.
The daily RSI indicator currently shows that ADA’s price may continue to rise today, with the daily RSI line sloped positively towards the overbought territory.
One key event that ADA traders and investors should take note of is the Fed interest rate announcement which will be made tomorrow evening. Interest rate hike announcements have impacted crypto prices for the duration of this latest bear market, and tomorrow’s announcement is expected to impact the crypto market as well.
This is especially true given the recent turmoil within the banking sector globally. The collapse of big banks and the upcoming Fed interest rate announcement could see ADA’s price drop in the next 24-48 hours should the interest rate announcement come in at higher than 25 basis points.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
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