Cardano’s price is up modestly as investors are focusing on recent US inflation data and the Fed’s decision on interest rates.
The ninth-largest cryptocurrency rose by nearly 3% on Wednesday to trade at $0.31. ADA has attracted over $329 million in trading volume, and its market cap is at $10.90 billion.
Investors expect the Fed to slow down rate hikes to combat inflation, as US inflation levels subsided in November.
Since the second week of November, Cardano’s price has been hovering between support at $0.30 and resistance at $0.33. The smart contracts token has been unable to break these boundaries, leading to a longer period of consolidation.
Despite bullish activity pushing ADA above the lower trend line, its upward momentum has faded, and it has not yet confirmed an uptrend above the second trend line. The 50-day Simple Moving Average at $0.32 reinforces this resistance.
Cardano’s price may see another bullish breakout if the positive outlook in the Moving Average Convergence Divergence (MACD) indicator holds in the coming sessions. As the MACD moves closer to the mean line and into the positive region, more buyers are likely to emerge, potentially pushing ADA above $0.30.
To cement the bulls’ influence, the price must break and hold above the 100-day exponential moving average at $0.3399. Movement toward $1.00 will depend on Cardano’s ability to overcome resistance at the 200-day exponential moving average.
On-chain data from Santiment shows that Cardano is still in a good buying zone, with the Market Value Realized Value (MVRV) at -5.70 after increasing from a 30-day low of -15.59. This consistent growth pattern suggests investors are becoming more confident in ADA’s recovery, although some holders may consider selling if the MVRV ratio moves above the mean line at 1.00.
Despite ongoing uncertainty in the cryptocurrency market and the global economy, addresses holding 10,000 and 100,000 ADA have continued to accumulate more tokens. Even though the Federal Open Market Committee (FOMC) may slow down on interest rate hikes, inflation remains high.
Cardano is currently in a buying zone as the New Year approaches. If buying pressure, especially from whales, continues, ADA could rally to $1 in the coming weeks and months.
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