Cardano Price Prediction: ADA Price Flat Ahead of Key Macro Events, But Bulls Still Target $0.60

Key Points

• Cardano is flat on Wednesday in the $0.55s as it awaits key upcoming macro events alongside broader crypto markets.
• Given it remains in a technical uptrend, ADA looks like it could break above $0.60 soon.
• But a break below the mid-July uptrend and 21DMA could open the door to a drop under $0.50.

ADA Price Rally above $0.60 Still on the Cards

ADA, the native token that powers the Cardano blockchain, was last trading almost bang on flat on Wednesday in the $0.55s per token, taking its cue from a consolidative tone to broader cryptocurrency market trade. Traders are refraining from placing big market bets right now ahead of the release of key US Retail Sales data for July and the minutes of the Fed’s July meeting later in the day.

The data will provide a timely update as to the health of the US consumer at the start of Q3 and, if weak, could reignite debate about whether or not the US economy is in recession. The Fed minutes, meanwhile, will shed light on the central bank’s appetite for further monetary tightening at upcoming meetings, with markets currently split over whether the bank will lift interest rates by 50 or 75 bps at its meeting next month.

If the Retail Sales data is healthy and Fed minutes not too hawkish, this could result in an upturn in sentiment that could lift cryptocurrencies. ADA might, in this bullish scenario, rally back towards its recent highs near the $0.60 level. Technicians have noted that ADA remains in a bullish trend, suggesting a positive near-term technical bias.

Indeed, after its big break above $0.55 resistance last week, many ADA bulls are still expecting the cryptocurrency to eventually reach and test the next major resistance zone in the $0.67-69 area.

Could ADA Break Lower?

If macro events on Wednesday go badly for crypto (i.e. weak data and a more hawkish tone to the Fed minutes that suggests more aggressive rate hikes at its upcoming meetings), then ADA is at risk of downside. If the cryptocurrency was to break below support in the form of the uptrend from mid-July and its 21-Day Moving Average just under $0.53, then it could quickly tumble back to test its 50DMA just under $0.50. A break below that could reopen the door to a drop back towards $0.40.

ADA bulls will be hoping that, at some point, optimism about Cardano’s upcoming Vasil hard fork upgrade, which Cardano founder Charles Hoskinson teased remains on schedule earlier this week, can start to lift the cryptocurrency in the weeks ahead. It is expected to be implemented before the end of the month.