Cardano (ADA) price appears to be testing its line of defense amid widespread declines in the cryptocurrency market ahead of the weekend. The ninth-largest cryptocurrency is down 6.3% down to $0.28.

Roughly $348 million in trading volume has been recorded across all exchanges, with most of it leaning to the bearish side. ADA boasts $9.9 billion in market capitalization, sitting below Dogecoin (DOGE) with $11 billion and above Polygon (MATIC) with $7.4 billion.

Can Cardano Price Outperform Ethereum in 2023

The world’s second-largest cryptocurrency, Ethereum (ETH), has, throughout 2022, suffered extreme battering events just like Cardano and the rest of the crypto market. ETH and ADA will likely close this year in shambles, having lost 75.6% and 90.8%, respectively, from their record highs.

Ethereum price hit a new all-time high of $4,878 on November 10, 2021, but currently dodders at $1,193 at the time of writing. Similarly, Cardano’s price holds roughly $0.28, which is significantly below its all-time high of $3.09.

How Does Cardano Price Short-term Outlook Compare to The Long-term Outlook

From a technical perspective, the short-term outlook for Cardano price is bearish. This sentiment follows the token’s recent drop below a crucial level of $0.30. The bottom analysts and investors have been hoping for was obliterated, leaving ADA to seek another robust support further downstream.

The three-day chart shows bulls engaging in a fierce tug-of-war with the bears. As illustrated below, keeping the price above the falling channel’s throughline could pave the way for a quick rebound above $0.3.

On the other hand, confirming movement below that same throughline could culminate in extended losses, with Cardano price forced to hunt for solid support at the channel’s lower boundary – possibly around $0.20. If push comes to shove, ADA might bottom at $0.16, where high liquidity could propel it on a sustainable uptrend.

ADA/USD three-day chart

Evaluating the Possibility of a Cardano Price Rally In 2023

The more Cardano price sinks, the more oversold it gets. From the same three-day chart, the Stochastic indicator seems highly oversold, which suggests that a recovery looms.

Investors would now consider filling their ADA bags ahead of an imminent bullish move. Traders hoping to long Cardano must wait to see the Stochastic lifting into the neutral zone. If the indicator sustains movement above the midline (50.00) and possibly into the overbought region (above 80.00), it will mean that bulls finally have the upper hand.

A break and hold above the broken support at $0.30 would improve investor confidence in the recovery, thus providing ADA with the required momentum to rally as soon as the first quarter of 2023.

Some of the key signals to keep track of as ADA considers another north-bound move to new all-time highs would be trading above the falling channel, all the major moving averages (50-day EMA (in red), the 100-day EMA (in blue) and the 200-day (EMA in purple)) and its key level at $1.00.

As Cardano Price Sinks but Key Fundamentals Improve

The drop in Cardano price has helped some investor cohorts stack up on ADA. On-chain insight from Santiment shines on whales with between 10,000 and 100,000 coins. From the chart below, addresses within that range hold 11.45% of Cardano’s supply, up from 10.96% recorded approximately six months back.

Cardano Supply Distribution

Although the large-volume buyers have remained strong, their influence on ADA falls short of the selling pressure in the market. Besides, market conditions have recently been extremely unfavorable, considering the fall of Terra (LUNA) and FTX.

Cardano price could soon flip its outlook bullishly, especially if the whales keep this buying spree intact. The Market Value Realized Value (MVRV) adds credence to the bullish outlook as it drops below the mean at 1.

Cardano MVRV Ratio

An MVRV reading below 1 implies that ADA is trading below its fair market value. In this case, investors may prefer to buy more than sell. As sidelined buyers take advantage of a lower-price ADA, a bullish momentum may build. Profit booking is expected to resume as the MVRV crosses above the mean.

Cardano Alternative with Solid Fundamentals to Rally in The Short-term

Cardano price presents a short-term bearish, but ADA could flip bullish and explode above its all-time highs in the long term. However, market conditions are not conducive to a substantial rally.

Investors may consider diversifying their portfolios with new crypto projects boasting solid fundamentals to rally. The tokens we highlight often outperform investor expectations, like Tamadoge, which rallied by more than 1,800% after it was listed on the first exchange in October.

Dash 2 Trade (D2T) is a Great Bear Market Hedge

The cryptocurrency market is dynamic, but with a platform like Dash 2 Trade, investors are guaranteed access to timely trading signals that offer the best buy and sell opportunities. On the same platform, traders can build strategies, back-test them, and share them with others through the available social trading tools.

Dash 2 Trade lets investors participate in crypto presales and get firsthand information on the market’s listing announcements. D2T is an ERC-20 token enabling all in-house transactions, including access to premium services offered on Dash 2 Trade.

D2T presale is in its final stage after raising $10 million. Its first exchange listing has been scheduled for January 11, 2023.

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FightOut is a Move-to-Earn (M2E) fitness app and gym chain that aims to gamify fitness and lifestyle. Users on the app get rewards for completing workouts and other challenges. The ecosystem hopes to recognize the people in their journey to healthier lives with recognizable badges.

The team is holding a presale to raise money to fund the project, which would see the development of a fitness app with Web3 aspects. Physical gyms are also part of the platform’s roadmap.

Currently, 60.06 FGHT tokens are selling for 1 USDT, with $2 million raised since the presale started.

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