Cardano price remains under the control of the bulls despite the recorded easing. As at the time of writing, ADA/USD was down by 2% at $0.3863. Amid optimism in the broader crypto industry, a hawkish Fed has continued to weigh on the altcoin.
Fundamentals
Investors entered 2023 full of optimism over the recovery of the crypto market from the murky waters of 2022. In fact, after ending last year at a two-years low of $0.239, cardano price rallied by over 70% in the year’s first month.
The optimism has continued to support the cryptocurrency. In fact, for about a monthly now, the asset has been trading above the once steady support zone of $0.3000. In the short term, I expect that trend to continue amid the improved market sentiment.
However, concerns over the Fed’s position is expected to be a key challenge for the bulls in the crypto industry. Crucial US inflation and job numbers prior to the next Fed meeting on 21st – 22nd March will be crucial in shaping cardano price movements. As has been the case in past months, a hawkish Fed will continue to curb the crypto’s gains.
Cardano price prediction
ADA/USD edged lower on Thursday with the crypto remaining largely range bound for about two weeks now. Granted, it has continued to trade above the 25 and 50-day exponential moving averages (EMAs) as seen on its daily chart.
Based on both the technicals and fundamentals, I am cautiously bullish on Cardano price. In fact, for as long as the asset remains above 0.3050, I am of the opinion that the bulls will still be in control. Notably, the asset has been trading above the aforementioned level for a month now. It also marks the point of the bullish golden cross formation in mid January.
Even so, I expect it to be subject to curbed gains in the short term. In particular, I forecast that the three-month high hit at the beginning of February 2023 at 0.4140 will remain a steady resistance zone for the altcoin in the ensuing sessions.
In the near term, the range between the 25-day EMA at 0.3750 and the resistance level at 0.4000 will be worth watching. A pullback past the range’s lower border may place the support zone along the 50-day EMA at 0.3528.
