The native token of the Cardano ecosystem, ADA seems stuck between a rock and a hard place. On the upside, Cardano price movement is capped under the seller congestion zone at $0.40, while support at $0.35 appears strong enough to keep the uptrend in place. Despite the temporary hold in that range, ADA price may eventually break out to the all-time high of $3.15, with the support of Djed’s launch – the first stablecoin on the Cardano blockchain.

Investors are preparing for the expected launch of Djed by filling their wallets with ADA. Price data from CoinMarketCap shows a 42% spike in volume to $379 million even as Cardano price consolidates between $0.35 and $0.40.

Analysts often interpret increasing volume to mean a spike in accumulation among investors. It signals high expectations from investors that Cardano price will eventually break out to the upside. That said, it is possible that a minor push above $0.40 could open the door to gains above $0.6 and $1.00, respectively in the next few weeks.

Cardano monthly price chart

Overcollateralized Stablecoin Djed To Go Live This Week, But Will Cardano Price Rally?

The first stablecoin on the Cardano blockchain is set for its debut this week amid increased anticipation from the community and investors. This launch was announced by Coti network, a DAG-based Layer 1 protocol, developing the stablecoin in collaboration with Cardano’s developer, Input Output Global (IOG).

Djed is expected to go live on several exchanges including these decentralized exchanges (DEXs) in the Cardano ecosystem; MuesliSwap and MinSwap. According to data from DeFi Llama, MinSwap is the most significant DEX Cardano’s DeFi sector, with $31.54 million in total value locked (TVL). MuesliSwap comes fifth with $6.5 million in TVL, behind Indigo, WingRider, and SandaeSwap.

The stablecoin has been designed to keep its value relatively stable backed by other tokens. It stands out for requiring 400% in collateralized value ahead of its debut. IOG and Coti decided to overcollateralize Djed to prevent a repeat of Terra USD, the stablecoin that sent the crypto market into a tailspin in May 2022, after it lost its dollar peg and crashed uncontrollably.

In addition to the listings on MuesliSwap and MinSwap, Djed will go live on more than DeFi applications (dApps) within the Cardano ecosystem and at the Bitrue exchange. It is expected to launch alongside, DjedPay, an application that will support payments, enabling users to seamlessly spend their digital assets on various merchants and businesses globally.

Assessing the Bullish Outlook In Cardano Price

Cardano price stopped shy of the seller congestion zone at $0.40, resulting in an ongoing pullback. Crypto analysts had anticipated a breakout above this level to catalyze another bullish move to $0.6 and $1.0, respectively.

ADA price might push for the immediate resumption of the uptrend if a short-term buyer congestion zone at $0.38 absorbs the selling pressure and prevents the leg from stretching to $0.35.

Bulls must work toward a daily close above the falling upper trendline and subsequently weaken resistance at $0.40 to keep the uptrend intact. Nevertheless, Cardano price is not the only crypto asset facing rising selling pressure. Analysts believe that the market is factoring in expectations toward the United States Federal Reserve decision on the interest rates in two days.

It is possible that weak hands are being liquidated ahead of another bullish breakout to usher in February. Support at $0.35 is in line to arrest declines if selling pressure intensifies due to the liquidations.

From the daily chart, we can confirm an optimistic outlook for Cardano price with two of the major moving averages trading the eighth-largest crypto. The 50-day Exponential Moving Average (EMA) (in red) will strengthen the bullish grip if it crosses above the longer-term 100-day EMA (in blue).

Traders should also follow the position of the Money Flow Index (MFI) indicator to help determine the next direction Cardano price may take. The MFI holds horizontally at the lower range of the overbought region. If it falls into the neutral zone, extended declines would be the most likely outcome. On the other hand, a spike toward the upper range of the overbought area would nurture the uptrend.

Will Cardano Price Reach $10 In 2023?

Cardano is one of the largest cryptocurrency ecosystems in the world. It has over the years grown to support smart contracts, enabling a thriving DeFi sector where $76 million is currently locked on different platforms like MinsSwap.

The introduction of the Djed stablecoin has the potential to increase value growth within the ecosystem. Stablecoins are highly sought after because they enable the faster and cheaper transfer of value in addition to providing liquidity and ensuring stability.

Djed’s launch will positively impact the TVL in Cardano’s DeFi sector. Although Cardano is the eighth-largest cryptocurrency, its TVL ranks 27th among other blockchains. Djed has the potential to attract more value to the network, thus making Cardano attractive to investors. Tron DAO’s TLV massively grew after the launch of a stablecoin in May 2022 and now comes in second position after Ethereum.

With that in mind, the launch of Djed will be a positive signal for Cardano as an ecosystem and its native token ADA. Meanwhile, a price rally to $10 could be challenging in 2023 but investors can expect gains possibly to the all-time high of $3.15. If the developments planned by IOG in 2023 continue as expected, Cardano price might surpass this level to reach a new record high.

Buy Cardano Now.

Cardano Alternatives To Buy Today

Before investing in Cardano, you may want to check out some of the best crypto presales in 2023. Our team of experts carefully selects the best altcoins to buy for investors wishing for bigger returns both in the short-term and long term.

Meta Masers Guild is one of the tokens investors are buying now. Its presale is in stage 4 with $2 million raised in a matter of weeks.

The top crypto presale stands out for its dedication to building the world’s first mobile-focused web3 gaming guild. Members of this new ecosystem will earn while playing the games they like in an in-game currency called Gems.

Other contributions to the ecosystem will also be rewarded in Gems, used for purchasing new assets, upgrading current ones, and converting them into MEMAG. The link below contains information on how to invest in one of the best gaming cryptos in 2023.

Fight Out - Next 100x Move to Earn Crypto

Our Rating

Fight Out
  • Backed by LBank Labs, Transak
  • Earn Rewards for Working Out
  • Level Up and Compete in the Metaverse
  • Presale Live Now - $4M+ Raised
  • Real-World Community, Gym Chain
Fight Out