Cardano price prediction: is ADA a buy as its daily volume retreats
- Cardano is on track for the first weekly declines in the past three weeks.
- The price action is similar to that of other cryptocurrencies like Bitcoin and Ether.
- The average daily volume of Cardano traded has dropped.
The Cardano (ADA/USD) is on track for the first weekly declines in three weeks as regulations and high-interest rate risks dampen the cryptocurrency market. The coin is trading at 1.5240, which is about 38% below its all-time high of $2.4770.
Regulations and falling volume
Cardano and other cryptocurrencies are struggling as the overall regulatory environment gets cloudy. In China, the government has launched a major crackdown of the crypto sector. Recently, it was reported that the social media accounts of some of the leading influencers were deactivated. Similarly, search engines like Baidu have blocked several search terms, including those of exchanges. Some of the exchanges blocked by Baidu are Huobi and Binance,
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Meanwhile, in the United States, there are calls for more regulations as the number of ransomware attacks increase. Janet Yellen, the head of the Treasury has led the calls for tougher regulations. Similarly, Senator Elizabeth Warren has asked Congress and other regulators to come up with tougher regulations.
The Cardano price has also struggled because of the overall falling volume. Data compiled by iNvezz show that the coin’s volume was more than $2.3 billion on Thursday. While this was a large figure, it was below the $6.6 billion that was traded on the same day in May. It is also lower than the February high of $12 billion. As shown below, the number of search times for Cardano in Google has fallen recently.
Further, Cardano Foundation and Input-Output have been relatively muted in the past few weeks. Input-Output pushed three press conferences in May and none this month. At times, these press conferences tend to have an impact on a cryptocurrency’s price.
Additionally, there are concerns about interest rates after the strong US inflation data published on Thursday. The data showed that the headline consumer price index (CPI) rose by 5% in May. That was higher than the median estimate of 4.7% and the Fed’s target of 2.0%. These numbers, coupled with the tightening labour market, points to tightening by the Fed.
Cardano price prediction
The daily chart shows that the Cardano price has been struggling lately. It has struggled moving above the resistance at $1.8857 and the support at $1.2617. It has also fallen below the 25-day and 50-day moving averages. A closer look also shows that it has formed a head and shoulders pattern. Therefore, while the outlook is neutral, there is a possibility that ADA price will break out lower during the weekend.
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