Cardano’s ADA price is dropping towards $0.52. Is it time to buy the dip?

Possible Drop Below $0.52 in Cardano (ADA) Price as Short-Term Predictions Turn Bearish, But Long-Term Bulls Remain Hopeful

Joel Frank Joel Frank Last updated: January 17, 2024 00:05 EST | 2 min read

Cardano Price The Cardano (ADA) price is eyeing a possible drop below $0.52 as short-term price predictions turn bearish, but long-term bulls are nonetheless asking whether now is the time to buy the dip.

Nearly all cryptocurrencies in the top 20 by market capitalization are trading with losses on Wednesday.

The Cardano price was last at $0.0525, down nearly 2% on the session.

ADA rejected a retest of its 50DMA at $0.55 on Tuesday.

While the Cardano price is still around 13% up versus last week’s lows, it’s over 20% down from December highs.

Market sentiment is fragile as traders continue to fret about the potential continuation of a “sell-the-fact” reaction to last week’s spot Bitcoin ETF approvals in the USA, and also as the macro backdrop turns into a minor headwind.

Short-term Macro Headwinds?

The US Dollar Index (DXY) and US bond yields have been pushing higher this year, generally a negative for crypto.

Recently released US data (inflation and retail sales) showed the US economy ended 2023 on a hotter-than-expected note.

And that is pushing back against bets that the Fed will cut interest rates as soon as March.

As per the CME’s Fed Watch Tool, the money market implied odds of a 25 bps rate cut from the Fed in March were last around 55.7%, down from around 65% one week ago.

Multiple Fed policymakers have noted that March is probably too early for a rate cut.

Citigroup sees a first Fed rate cut in June.

Macro risks thus seem tilted towards a continued pricing out of a March rate cut.

That could continue supporting the US dollar, US yields, and weighing on crypto in the short term.

Cardano (ADA) Price Prediction – Time to Buy the Dip?

Macro headwinds suggest the risk of more downside for the Cardano price in the near term.

And chart analysis very much conforms to this view.

The Cardano price broke its mid to late-December uptrend in 2024 and has since confirmed a bearish trend by rejecting a retest of this uptrend last week.

Cardano (ADA) Price Chart / Source: TradingView

Since that failed retest, the Cardano price has slid below both its 21 and 50DMAs.

This fading momentum suggests a strong likelihood of a near-term retest of 2024 lows.

The $0.46 area is a strong zone of support for the Cardano price.

If the price does retest this zone, this might be the optimal time to buy the dip.

Cardano (ADA) Price Chart / Source: TradingView

Altcoin to Consider – Bitcoin ETF Token ($BTCETF)

While the Cardano price could dip in the near term, its long-term potential is strong.

But a newly launched altcoin called Bitcoin ETF Token ($BTCETF) could perform even better in 2024.

The altcoin is designed to offer traders upside exposure to various milestones related to the launch of spot Bitcoin ETFs. These milestones are reached through tweaks to its transaction tax and via a burn mechanism.

The next two relevant milestones include spot Bitcoin ETF assets under management exceeding $1 billion and the Bitcoin price closing above $100,000.

BTCETF backers tout it as an asymmetric opportunity. They believe SEC approval could easily spur a doubling or tripling of Bitcoin prices in 2024.

Meanwhile, BTCETF theoretically has room to surge 10x from its current $12.45 million market cap, according to crypto analyst ClayBro.

Check out Bitcoin ETF Token on DEXTools.

Q&A:

  1. Q: What is Cardano and how does it work? A: Cardano is a blockchain platform that aims to provide a more secure and sustainable platform for the development of decentralized applications. It uses a proof-of-stake consensus algorithm and a layered architecture to ensure scalability and efficiency.

  2. Q: Can I mine Cardano (ADA)? A: No, Cardano cannot be mined like Bitcoin. It uses a proof-of-stake consensus algorithm, which requires users to hold and stake their ADA coins to participate in the network and earn rewards.

  3. Q: What are the potential risks of investing in cryptocurrencies like Cardano? A: Investing in cryptocurrencies carries various risks, including price volatility, regulatory uncertainty, and security risks. It’s important to do thorough research and understand the risks before investing in any cryptocurrency.

  4. Q: How can I buy Cardano (ADA) coins? A: You can buy Cardano (ADA) coins on various cryptocurrency exchanges. You will need to create an account, complete the necessary verification process, and deposit funds to make a purchase.

  5. Q: What is the potential for the Bitcoin ETF Token (BTCETF)? A: The Bitcoin ETF Token (BTCETF) offers traders exposure to the potential growth of the Bitcoin market as spot Bitcoin ETFs are launched. It is designed to leverage the milestones achieved in the Bitcoin ETF space, making it an attractive investment for those bullish on Bitcoin’s future.

  6. Q: How can I track the price of Cardano (ADA) and the Bitcoin ETF Token (BTCETF)? A: You can track the prices of Cardano (ADA) and the Bitcoin ETF Token (BTCETF) on various cryptocurrency tracking websites and mobile apps. These platforms provide real-time price updates and charts to help you stay informed about the market.

Conclusion

The Cardano (ADA) price is facing short-term bearish predictions due to macro headwinds and technical indicators. However, long-term potential remains strong for both Cardano and the newly launched Bitcoin ETF Token (BTCETF).

Investors should consider the risks and conduct thorough research before making any investment decisions. The coming months will be crucial for observing market trends and developments in the cryptocurrency space.

Don’t miss out on the latest updates and investment insights. Stay informed and share this article with your friends on social media!


References: – Frank, J. (2024, January 17). Cardano (ADA) Price Predictions Turn Bearish as Bulls Ask Whether Now’s Time to Buy Dip. CyberMagazines. Link

  • Cardano (ADA) Price Chart / Source: TradingView. Image

  • Bitcoin ETF Token ($BTCETF). Image

  • CyberMagazines. (2024, January 17). What Caused Bitcoin’s 10% Crash? Matrixport, Jim Cramer, and Leverage. Link

  • Bitcoin ETF Token (BTCETF) on DEXTools. Link

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