Cardano price has been trading sideways for the past few days as investors focus on the US key inflation data. During this period, the altcoin has been trading below the important bullish support at $0.300. At the time of writing, ADA was trading slightly lower at $0.2886. Its total market cap has crashed by nearly 2% over the last day, with the total volume of the ADA token traded, dropping by 6%.
Inflation Outlook
Cardano price has been in consolidation mode for the past few days as investors digest the latest US CPI data and Wall Street earnings. Even so, the digital asset has gained 1.69% in the past week and is up by 5.10% in the month to date. The ADA price is also up by 17.45% in the year to date but has remained 30.78% lower in the past year.
The global cryptocurrency market has also been on hold for the past few days against the backdrop of concerns about macroeconomic headwinds. The global crypto market cap has slipped over the past 24 hours to $1.19 trillion, while the total crypto market volume increased by 19.43% over the same period. The Crypto Greed and Fear Index has remained at a neutral level of 58 since the start of the week, hinting at the lack of confidence by investors.
Inflation dropped to its lowest annual rate in more than two years in June on the back of a decline in costs. The Consumer Price Index (CPI) measures the average change over time in the prices of a market basket of consumer goods and services. Data by the US Bureau of Labor Statistics shows that the key inflation data rose by 3% in June, compared to a year ago, its lowest level since March 2021. On a monthly basis, the headline CPI increased by 0.2% against market expectations for a 0.3% rise.
While the latest inflation data could give the Federal Reserve some breathing room, inflation remains above the Fed’s 2% annual target. Policymakers expect the inflation rate to continue falling over time in the wake of a cooldown in costs. Even so, traders are still pricing in a strong possibility that the central bank will hike its interest rates by a quarter basis point later this month before pausing.
Cardano Price Analysis
The daily chart shows that the Cardano price has been range bound for the past few days, trading between the tight range of $0.2770 and $0.300. The asset remains below the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages.
Therefore, the Cardano price is likely to continue moving sideways as its struggles to find direction. A break above the major support level of $0.3050 at the 50-day EMA might push the price higher to the next resistance level of $0.3290. However, a move below the support level at $0.2785 will invalidate this view.
ADA Price Chart
