Cardano Price Prediction: Despite room for 31% gains, ADA might find it difficult to rally again

Cardano price noted a significant increase followed by a sharp fall towards the end of December. While it was an expected course of action from the altcoin, the present scenario dictates that the bearishness may not have completely waned off even though there is still room for growth for ADA.

Cardano price recovery could be an uphill task

Cardano price can be seen trading at $0.52 at the time of writing, recovering from the dip in the past two days. On the 3-day chart, ADA is exhibiting the potential to continue its long-term uptrend that began mid-October, as the third-generation cryptocurrency has not lost the support of the 200-day Exponential Moving Average (EMA). 

Additionally, the uptrend line has sustained as support, too, after the altcoin successfully hit the target price of $0.68, attained from the double bottom pattern noted in the chart. Despite the correction, this target price can be reclaimed once again as it stands 31% away from the trading price. 
However, price indicators, especially the Moving Average Convergence Divergence (MACD), are exhibiting the first bearish signal in nearly four months. The bearish crossover observed on the indicator, combined with the potential bearish impact of funds flowing into Bitcoin following the spot BTC ETF approval, could bring ADA down.
A test of $0.46 is the likely outcome since the 200-day EMA coincides with this price, but prolonged bearishness could drag ADA lower to $0.41 to coincide with the 50-day EMA.
ADA/USD 3-day chart
Nevertheless, if Cardano price bounces off the $0.46 support line and reclaims the resistance at $0.55, it might have a shot at rising towards the target of $0.68. For the same, the $0.60 level must be flipped into support, which would invalidate the bearish thesis.

CRYPTOCURRENCY METRICS FAQS

What is circulating supply?

The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.