Dan Gambardella, the founder of Crypto Venture Capital, recently tweeted that Cardano (ADA) will be the top altcoin to hold in 2023, stating that it could increase by 1000+%.
ADA's Market Performance
Cardano opened the market last week, trading at $0.260, as shown in the chart below. It traded above the opening market price for just one day and recorded the highest price of $0.265 last Tuesday. However, ADA came tumbling shortly after registering its highest price. On its way down from $0.260, ADA reached its lowest of $0.2407 within two days.
Currently, ADA is trading in the red zone fluctuating between the $0.240-$0.250 range. As of press time, ADA is up 2.13% in the last 24 hours and is trading at $0.2505. Cardano ranks twenty-second on the list of top gainers.
ADA's Breakout and Future Potential
ADA made its first break for the last quarter of 2022 on October 25 (red elliptical). Since then, ADA has been able to make a breakout. However, on December 13, ADA tested the 200-day MA, but the bulls could not push ADA past the 200-day MA line.
If the bulls push harder, ADA will be able to hit the upper limit of the regression trend channel. With more bull support, ADA could break the 200-day MA and reach resistance 1( $0.2972). Further perseverance from the bulls and ADA could even reach resistance 2 ($0.4321).
However, if the bears take over, ADA will tank to support 1 ( $0.0905). The RSI (Relative Strength Index) is currently at 63.68 and is tilting upwards into the overbought region. Therefore, prices could drop further if the bulls don't come to the rescue.
ADA's Trend of Lower Lows
Since September, ADA has been fluctuating quite close to the 200-day moving average (yellow line). At times, it could break the 200-day MA and rebound on it, while at other times, it strayed well below the 200-day MA.
ADA has been registering lower lows (triangles) while trading in a regression trend channel during this time. However, ADA has stopped registering lower lows and gained some momentum.
If the bulls can maintain this momentum and push harder, ADA will be able to hit the upper limit of the regression trend channel. This could lead to a break of the 200-day MA and movement towards resistance levels 1 and 2.
On the other hand, if the bears take control, ADA may fall to support 1. It's important to keep an eye on the RSI, as it is currently in the overbought region, and a drop could indicate a potential price decline.