Cardano (ADA) started the year 2023 on a positive note, with its prices surging to new heights. Within just a few months, the prices almost doubled, reflecting the growing demand and trust among investors. However, today’s drop in Bitcoin prices affected Cardano as well. As a result, the prices of Cardano took a hit and slid lower below the 40-cent mark. What is the Cardano prediction for the coming weeks?
Why is Cardano Price Down?
Cardano (ADA) price has seen a massive increase since the beginning of the year. However, Bitcoin recently dropped below its psychological price of $30,000, bringing the entire crypto market along. Cardano took a hit from this drop, but also hinted at an upcoming crash in prices from a technical perspective. Looking at Figure 1, we can see how ADA formed a head and shoulder formation, which often translates into an upcoming drop in prices. Prices went down and reached the next support price of around $0.38 and rebounded to the current price of around $0.39.
Why can ADA Coin rise sharply again?
Due to the heavy losses in 2022, the ADA token seemed to be severely undervalued at the turn of the year. In the last few weeks, the ADA price has been able to recover. In January 2023 in particular, we saw strong increases. Furthermore, the Vasil update probably has a delayed positive effect on the price.
Cardano Prediction for the next few weeks
The Cardano (ADA) forecast should be positive in the coming weeks. As ADA reached its support price of $0.38, price are expected to continue to rise and reach the support price of $0.43 again. This takes into account that the entire crypto market is adjusting higher again. However, if Bitcoin continues to drop, Cardano would in turn breach its support price of $0.38 and go towards $0.34.
How high can Cardano reach in the coming months?
The Cardano price should therefore be able to rise sharply in the coming weeks. If bitcoin continues its rally towards $35,000 or above, a rally towards $0.60 or $0.70 is quite possible again in the coming weeks.
Realistically, the price could probably rise by 20 to 30% in the second quarter. That would end us at a Cardano (ADA) forecast of $0.55 to $0.60 by Q3 2023.