The Cardano price has been under intense pressure in the past few months as worries about its ecosystem growth have remained. ADA, its native token, is trading at $1.1687, which is about 60% below its all-time high that was reached on September 2nd last year.
There are two main reasons why the ADA price has struggled in the past few months. First, there are concerns that the Federal Reserve and other central banks will embrace a hawkish tone in a bid to fight inflation.
Economists expect that the Fed will start hiking interest rates by about 0.25% in March and then accelerate the process in the following months. Other central banks like the Bank of England (BOE), Bank of Canada (BOC), and RBNZ will also be hawkish. Historically, risky assets like Cardano do well when interest rates are low.
Second, there are concerns about Cardano’s ecosystem growth. While Charles Hoskinson and his foundation have touted the number of apps in the pipeline, analysts expect that it won’t be an easy thing for Cardano. Besides, competition is rife in the industry, with platforms like Solana and Binance Smart Chain doing well.
Cardano price prediction
The daily chart shows several things. First, we see that the ADA price has been in a deep sell-off in the past few months. Second, it formed a head and shoulders pattern, which is a bearish signal.
It has also moved slightly below the 25-day and 50-day exponential moving averages, which is a bearish signal. The price is also above the key support level at $1, which was the lowest level in July last year.
Therefore, the path of the least resistance for the Cardano price is in the downside. This could see it drop to the support at $1.