Cardano (ADA-USD) tokens rose as much as 7.2% in Wednesday’s trading as trading sentiment across the cryptocurrency market was largely risk-on.
Like the vast majority of major cryptos, ADA has been caught up in an intense downward spiral since it peaked at nearly $3 in August 2021. It’s now changing hands at just 26 cents as of 4:57 p.m. ET.
Meanwhile, bitcoin (BTC-USD), +0.9%, and ethereum (ETH-USD), +3.4%, the two largest cryptos by market cap, gapped up but remain in a tight trading range that has persisted for months amid lighter-than-usual volume and price volatility. Wednesday’s upswings pulled up beaten down crypto-exposed stocks.
Seeking Alpha contributor Clem Chambers mapped out his expectations for where bitcoin’s (BTC-USD) price is going in 2023, saying “we could easily get another leg down before Easter” as “much of the FTX (FTT-USD) contagion has yet to emerge.” If history serves as any guide, the direction of bitcoin, — a gauge for the entire space — will determine the price action of other coins.
Similarly, fellow SA contributor Ryan Wilday warned of “more rough waters ahead” for bitcoin, noting it must hold $16K to ensure the end of the current bear cycle.