Cardano (ADA) price has been experiencing a sideways trading pattern in recent days, with investors closely monitoring the US key inflation data. Currently, ADA is trading slightly lower at $0.2886, below its important bullish support level at $0.300. Over the past day, the total market cap of ADA has decreased by nearly 2%, while the total volume of ADA tokens traded has dropped by 6%.
The consolidation mode of Cardano price can be attributed to investors analyzing the latest US Consumer Price Index (CPI) data and earnings reports from Wall Street. Despite this period of consolidation, ADA has recorded a 1.69% gain in the past week and a 5.10% increase for the month. Year to date, ADA price has surged by 17.45%, although it remains 30.78% lower compared to the past year.
The global cryptocurrency market has also experienced a pause in recent days amidst concerns about macroeconomic headwinds. The global crypto market cap currently stands at $1.19 trillion, with a 19.43% increase in total crypto market volume over the past 24 hours. Meanwhile, the Crypto Greed and Fear Index has remained at a neutral level of 58 since the beginning of the week, indicating a lack of confidence among investors.
In terms of inflation outlook, June witnessed the lowest annual inflation rate in more than two years due to a decline in costs. The Consumer Price Index (CPI), which measures the average change over time in the prices of consumer goods and services, rose by 3% in June compared to the previous year. This is the lowest level recorded since March 2021. On a monthly basis, the headline CPI increased by 0.2%, slightly lower than market expectations of a 0.3% rise.
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While the latest inflation data could provide some breathing room for the Federal Reserve, inflation still remains above the central bank’s 2% annual target. Policymakers anticipate a gradual decrease in the inflation rate as costs begin to stabilize. However, traders are still factoring in a strong possibility of a quarter basis point increase in interest rates by the central bank later this month, followed by a pause.
Analyzing the daily chart, Cardano price has remained range-bound between $0.2770 and $0.300 in recent days. The asset is currently trading below the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages. As a result, ADA price is expected to continue moving sideways as it struggles to find direction. A break above the major support level of $0.3050 at the 50-day EMA could potentially push the price higher to the next resistance level at $0.3290. Conversely, a move below the support level of $0.2785 would invalidate this view.
In conclusion, Cardano price has been in consolidation mode as investors analyze the US inflation data and Wall Street earnings. Despite the sideways trading pattern, ADA has recorded gains in recent periods. The global cryptocurrency market has experienced a pause, with concerns over macroeconomic headwinds. In terms of inflation, June saw the lowest annual rate in over two years, but it remains above the Fed’s target. Cardano price analysis suggests continued sideways movement, dependent on key support and resistance levels.
