The Cardano (ADA) Price is Poised for a Drop Below $0.52
The Cardano (ADA) price is showing signs of a possible decline below $0.52, according to short-term price predictions. However, long-term bulls are questioning whether now is the right time to buy the dip.
Currently, most cryptocurrencies in the top 20 by market capitalization are trading with losses.
As of now, the Cardano price is at $0.0525, down nearly 2% for the session.
Yesterday, ADA failed to retest its 50DMA at $0.55.
Although the Cardano price is still up about 13% compared to last week’s lows, it has dropped more than 20% from its December highs.
Market sentiment remains uncertain as traders worry about a potential “sell-the-fact” reaction to the recent Bitcoin ETF approvals in the US. Additionally, the macro backdrop is becoming a minor headwind.
Short-Term Macro Headwinds?
The US Dollar Index (DXY) and US bond yields have been rising this year, which typically has a negative impact on crypto.
Newly released US data on inflation and retail sales indicate that the US economy ended 2023 stronger than expected.
This data contradicts bets that the Federal Reserve will cut interest rates as early as March.
According to CME’s Fed Watch Tool, there is currently a 55.7% chance of a 25 bps rate cut in March, down from around 65% one week ago.
Several Fed policymakers have stated that March is likely too soon for a rate cut.
Citigroup predicts that the first Fed rate cut will occur in June.
Given these macro risks, it is likely that the pricing out of a March rate cut will continue. This could result in ongoing support for the US dollar and US yields, while weighing on crypto in the short term.
Cardano (ADA) Price Prediction – Is it Time to Buy the Dip?
The Cardano price faces potential downside in the near term due to macro headwinds.
Chart analysis also supports this view.
In 2024, the Cardano price broke its uptrend from mid to late December and confirmed a bearish trend by failing to retest this uptrend last week.
Since then, ADA has dropped below both its 21 and 50DMAs, indicating fading momentum.
This suggests a high probability of a near-term retest of 2024 lows.
The $0.46 area is a strong support zone for the Cardano price.
If the price does retest this zone, it could present an optimal opportunity to buy the dip.
Altcoin to Consider – Bitcoin ETF Token ($BTCETF)
While the Cardano price may experience a dip in the short term, its long-term potential remains strong.
However, there is another altcoin called Bitcoin ETF Token ($BTCETF) that could outperform in 2024.
This altcoin is designed to provide traders with exposure to various milestones related to the launch of spot Bitcoin ETFs through transaction tax tweaks and a burn mechanism.
The next two important milestones are when spot Bitcoin ETF assets under management exceed $1 billion and when the Bitcoin price closes above $100,000.
Supporters of BTCETF believe that SEC approval could easily lead to a doubling or tripling of Bitcoin prices in 2024.
Meanwhile, BTCETF has the potential to surge 10x from its current market cap of $12.45 million, according to crypto analyst ClayBro.
You can find Bitcoin ETF Token on DEXTools.
Hot Take: Cardano Price Prediction as ADA Drops Towards $0.52 – Time to Buy the Dip?
The Cardano (ADA) price is facing the possibility of dropping below $0.52, which has raised concerns among short-term traders. However, long-term investors are questioning whether this is an opportunity to buy the dip. The current market conditions, including the performance of other cryptocurrencies and macroeconomic headwinds, suggest that there may be further downside for ADA in the near term. Chart analysis also supports this view, indicating a potential retest of previous lows. However, if the price does reach a strong support zone around $0.46, it could present an optimal buying opportunity. Additionally, there is another altcoin called Bitcoin ETF Token ($BTCETF) that may offer better performance in 2024 due to its exposure to milestones related to spot Bitcoin ETFs. Overall, while there may be short-term challenges, the long-term potential for Cardano and other cryptocurrencies remains strong.
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