The first month of the year has passed, and February has not started too badly for cryptocurrencies. BTC has reclaimed the $43,000 level. Speculative price movements continue to target liquidation zones on the futures side. So, what is the expectation for Cardano (ADA)? What do the current data tell us?
Cardano (ADA)
On the weekly chart, the Cardano price has completed its sixth unsuccessful attempt at the long-term resistance area since November. The price, unable to surpass the horizontal resistance area, indicates persistent selling pressure. We have been discussing that profit-taking in ADA Coin has been driving the price to lower levels for a long time, and this negative process continues.
In its latest attempt this week, the ADA Coin price formed a long upper wick, confirming the continuation of short-term profit-taking. The weekly RSI is on a downward trend, and the BTC price is creating long red candles after each rise, indicating the arrival of profit-taking.
ADA Price Prediction
Readings on the daily chart are also signaling a bearish outlook for ADA Coin. Both technical readings and the RSI trend suggest the potential for deeper lows. The price chart shows that the ADA Coin price has been on a decline below a decreasing resistance trend line since December 14, 2023.
Now, the outlook is extra negative as the overly optimistic expectations regarding Fed rate cuts begin to be slashed. The Fed announced that it does not expect a weakening in employment and will be extremely cautious about cuts. This suggests that there may not be any cuts even in the meetings in March or May.
The ADA Coin price is now breaking below the $0.48 support, and if we see closures below this, we could witness the continuation of sales down to $0.38 and $0.33. The RSI was rejected from the neutral zone and is returning to the oversold region.
Investors are likely to see an increase in volatility following tomorrow’s U.S. employment data. If the unemployment figures come within expectations, this could dampen the hopes for early rate cuts and could also undermine the positivity for the meeting in May. Of course, crypto is unpredictable, and no one can say that a scenario with a surprise rise from support will not occur.
