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The global cryptocurrency market cap gained 3.37% today, February 15, reaching above $1 trillion after being down for days. Cardano (ADA) has joined the top-gaining coins today, leading with over 8% gains after being in the red zone for two days.
As of February 13 and 14, ADA closed the day with a price decline. The Cardano token closed the market on Monday, February 13, at $0.364262, a 1.6% decline from its February 12 price of $0.370121. ADA recorded another 1.1% decline on Tuesday, February 14, at $0.384861.
However, things seem different on Wednesday, February 15, as ADA jumped to $0.3913, an 8.5% 24-hour price gain. Although ADA saw a decline in the last 14 days, the crypto retained most of its January gains. Let’s see why.
Factors Contributing To ADA’s Price Action
According to historical data, ADA stepped into February with bullish momentum. ADA saw an over 40% price surge from $0.246398 on December 31, 2022, to $0.404939 on February 3. However, the cryptocurrency started falling on February 4 after a downturn hit the broader cryptocurrency market. Now ADA seems to have picked up again.
The cryptocurrency owes its January rallies to several developments on the Cardano network. According to Sentiments data, Cardano ranked the highest in network developments in 2022 and January 2023. Among them is Djed stablecoin launch, which went live on January 31. The hype around this project got ADA prices surging for weeks before the launch. Many said Djed stablecoin would attract more users to the Cardano network.
Also, the Cardano Blockchain saw several projects building on it, including the eTukTuk project that provides charging infrastructure for electric vehicles. Then there was the SingularityNet/Cardano integration that would allow interoperability across Cardano and Ethereum.
There was also a new improvement proposal called CIP-30 that would allow the integration of web-based wallet bridges on Cardano. All these and other developments contributed to pushing ADA upwards in January.
However, over the last week, the crypto market volatility increased due to the FUD caused by heightened regulatory actions on the crypto industry. The uncertainty around the January Consumer Price Index also led to a decline in investor sentiment which rubbed off on Cardano and other digital assets.
Meanwhile, ADA’s recent price action could be attributed to the relief of the crypto market, as the investors’ sentiments seem to be increasing after the release of the January CPI data.
ADA Price Outlook And Prediction
ADA is gaining in the market today, building on its rally from yesterday. A large green candle formed on February 14, creating a bullish engulfing pattern on the chart, which indicates an uptrend.
The asset is trading above its 50-day Simple Moving Average (SMA), which is bullish sentiment in the short-term. Also, the wick of the February 15 candle has risen above the 200-day SMA, which is also a bullish sentiment in the long term.
The support levels are $0.32702, $0.34116, and $0.36365, and the resistance levels are $0.40022, $0.41430, and $0.43679. The Relative Strength Index (RSI) is at 56.07, indicating neutrality.
ADA’s MACD (Moving Average Convergence/Divergence) is below its signal line, which is a bearish signal. However, the indicator might change its direction soon. Expect ADA to rally close to the $0.40022 resistance if the bulls persist.
Note that crypto assets are volatile, and reclaiming past price levels could be challenging. Proper analysis and sound risk management strategies are essential for every crypto trader.