Cardano Price Prediction as ADA Dumps 7.5% – Can ADA hit $1 in 2024?
Cardano (ADA), the cryptocurrency that powers the smart-contract-enabled layer-1 Cardano blockchain protocol, dumped 7.5% on Wednesday.
ADA/USD was last changing hands around $0.56 per token, having at one point traded as much as 16% lower on the day when it hot lows just above $0.50, near its 50DMA.
ADA’s downside comes amid a broader leveraged-fuelled sell-off across crypto that was probably triggered by FUD regarding the possibility that the US SEC refuses to approve spot Bitcoin ETFs in the very near future.
Macro headwinds may also have contributed to the sell off, with US stocks pulling lower and the US Dollar Index (DXY) and US government bond yields rising on Wednesday as macro traders pair back on Fed rate cut bets this year.
The latest weak US ISM Manufacturing PMI numbers for December and the release of the minutes from the Fed’s December meeting didn’t have a lasting impact on the crypto market or ADA.
ADA’s fortunes were likely worsened by the fact that Wednesday’s price drop saw the cryptocurrency break below a key short-term uptrend that had been supporting the price action since mid-December.
If ADA proceeds to find resistance at this prior uptrend, this could confirm that the cryptocurrency has entered into a near-term downtrend.
That being said, ADA’s strong bounce from its 50DMA on Wednesday is a bullish sign, clouding the near-term outlook.
Longer-term, price predictions are likely to remain bullish.
Most analysts continue to think it’s a matter of when, not if, spot Bitcoin ETFs are approved, that the Fed will soon be easing financial conditions via rate cuts, and that other (potentially) bullish themes such as the upcoming Bitcoin issuance rate halving and US elections could also support sentiment in 2024.
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