Cardano Price Forecast As Founder Charles Hoskinson Takes On Crypto Critics – Time To Buy ADA?
Investors in the crypto market are again aggressively bullish following the collapse of key US banks. ADA, the token that powers Cardano, a decentralized ecosystem is up 3.6% in 24 hours and is trading at $0.3435 at the time of writing.
The Cardano price is not the only bullish asset, considering Bitcoin’s 10.8% jump in 24 hours to change hands at $24,427. According to the live price data from CoinGecko, the second largest crypto, Ethereum is closely following BTC’s steps, hence its 7% move to $1,680.
Total market capitalization is back above $1.1 trillion after investors added 6.5% in value while taking advantage of the fresh bullish momentum seen in the market this week. This positive outlook in the market is likely to persist through the week as investors show resilience amid collapsing US banks.
Cardano founder Charles Hoskinson slams crypto critics
The co-founder of Cardano, the seventh-largest cryptocurrency with a $12 billion market cap and $500 million in 24-hour trading volume, has called out crypto critics for their unfair representation of the crypto market.
Hoskinson touched on the recent collapse of three banks in the United States via a tweet – namely Signature Bank, Silvergate Bank and Silicon Valley Bank (SVB).
According to the blockchain master, when stablecoin issuers such as Circle, Paxos and Tether announce intentions “to keep security mainly in cash and government bills”, crypto critics never react.
Governments have for a long time maintained the notion that “CRYPTO IS SUPER RISKY”, and this way of thinking is unlikely to change even in light of the implosions in the banking sector.
Hoskinson also took shots at the banks for choosing “to hold collateral mostly in longer-dated TradFi bonds.” Yet they fail and go down, leaving more questions than answers.
Despite the impact of the three banks that collapsed in a record four days in the US, according to the ADA founder, the government will still say, “LOOK, CRYPTO IS SUPER RISK.”
The crypto community seemed to unanimously agree with Hoskinson. One of his followers, going by the name ‘CardanoChefPool’, responded to the tweet above saying “and this is why we got into crypto and joined the movement. The system is broken… I don’t think it can get worse than what is!”
Cardano price shows key buy signals
The sharp downtrend in Cardano price from the new 2023 high of $0.4210 slowed down to $0.30, just as analysts expected. Otherwise, losses could widen, forcing ADA to return to the December low of $0.24.
Given the huge congestion of buyers at $0.30, the ADA price drained of liquidity and retreated sharply to areas marginally above $0.35.
Although investors have been looking forward to Cardano approaching $0.40, the upside has been capped below a confluence resistance created by the 50-day exponential moving average (EMA) (line in red) and 100-day EMA (line in blue).
Traders who may be looking forward to taking new or additional long positions in ADA may want to wait for the token to validate the uptrend by hovering above this critical area of contention – just above $0.35.
A natural break above $0.35 is needed to confirm the subsequent swing to $0.40 as bulls play the long game at $1.00. Already a buying signal from the Moving Average Convergence Divergence (MACD) reveals the path of least resistance to the upside.
However, it is important to determine the position of the MACD line in blue above the signal line in red. The momentum indicator also needs to be in a generally uptrend for the Cardano price to sustain the much-anticipated bullish move.
From the same daily chart, we can deduce the importance of bulls not resting until the ADA breaks through the falling trendline resistance.
The first attempt above this line was successful in early February, but bulls lost their influence as the crypto market reacted to increased regulatory pressure from US agencies and a worsening global economic outlook.
That said, it would be prudent if the Cardano price extended its leg above the trendline in a move that is likely to open the door to gains above $0.40 in the coming days – possibly a week.
Cardano price uptrend stabilizes in shorter time frames – 4-hour chart
Bulls maintain the optimistic outlook for the Cardano price even in shorter timeframes as observed on the four-hour chart. The MACD buy signal is more aggressive, with the indicator at 0.007.
Meanwhile, two short-term levels will likely determine where the Cardano price is headed next. On the downside, the 100-day EMA (line in blue) at $0.329 is in line to ensure that ADA does not pull back to $0.32 and $0.30, respectively.
On the other hand, the 200-day EMA (line in red) limits the move to the upside at $0.35, thus coinciding with the resistance analyzed using the daily time frame chart. Nevertheless, the ADA price needs to push through the falling upper trend line, as illustrated on the four-hour chart to allow Cardano to stage another aggressive attack on the $0.40 barrier.
The odds will remain in favor of the bullish outlook as long as the SuperTrend indicator continues to follow the price. In other words, the green line below the Cardano price indicates that the path of least resistance is currently up.
If profit-booking activity picks up as investors move to protect their capital ahead of the Federal Open Market Committee (FOMC) meeting in a week, ADA’s possible return to $0.32 and $0.30 may not be ruled out immediately.
Nevertheless, investors will likely take advantage of the cheaper ADA tokens to fill their bags while playing the long game at $1.00.
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