Cardano's ADA token saw a 1.09% price increase over the past 24 hours to $0.2458, up from $0.2431 yesterday. With a market capitalization of $8.64 billion, ADA remains one of the top 10 cryptocurrencies by market cap. Here are the key takeaways from ADA's latest price action and technical indicators:

The 24-hour trading volume for ADA was $85.45 million, suggesting decent interest and activity among traders. Over the past hour, ADA has seen a slight 0.12% uptick, showing some bullish momentum in the short term.

Zooming out further, the weekly performance paints a more negative picture - ADA has dropped 3.93% over the last 7 days. The monthly and 6-month performances are also in the red at -5.08% and -31.02% respectively, indicating prolonged bearish sentiment.

On the daily chart, ADA is testing resistance around the $0.246 area. This level aligns with the 21-day moving average, making it an important area of contention between buyers and sellers. A break above $0.246 could signal a relief rally towards $0.28, the next area of overhead resistance.

The MACD indicator on the daily timeframe shows a positive crossover, a bullish signal that occurs when the faster moving average crosses above the slower moving average. However, the histogram remains negative, reflecting that bullish momentum has yet to pick up substantially.

The relative strength index (RSI) of 44 reflects neutral momentum, with the indicator sitting between overbought and oversold levels. There is room for the RSI to push higher before hitting overbought territory above 70.

Overall, the near-term outlook remains neutral to slightly bullish given the oversold conditions on the daily chart. A sustained move above the 21-day MA is needed to confirm bullish momentum. Initial support lies at $0.24, followed by the psychological $0.20 level.

Will the Downtrend Resume or Is This a Bottom?

Looking ahead, ADA faces several key levels that will determine whether the downtrend will resume or if a longer-term bottom is forming.

The first critical area is the 200-day moving average near $0.275. This level marks the dividing line between the long-term bull and bear trends. A break back above the 200-day MA would suggest the bears are losing control and could precipitate a rally back to the $0.30 - $0.35 resistance zone.

However, failure to reclaim the 200-day MA keeps the focus on the downside. Support levels to watch include the 2022 lows around $0.20 and the major psychological level at $0.10. A drop below $0.10 would confirm a long-term bear trend is in play.

ADA's multi-month downtrend remains intact within the confines of a falling price channel on the daily chart. A break above the upper channel boundary near $0.28 is needed to reverse the bearish structure.

The bullish case would be strengthened if ADA can print a higher swing low to reverse the series of lower lows made over the past year. This would demonstrate demand is returning at higher levels.

Is Cardano a Good Buy in 2023?

Given the prolonged 85% drawdown from the 2021 highs, many investors wonder if Cardano is a good buy at current levels around $0.25. Here are some factors to consider:

On the bullish side, ADA trades 70% below its all-time high of $3.10, increasing its potential upside if broader crypto sentiment improves. Major network upgrades also lie ahead in 2023, which could boost utility and fundamentals. Additionally, staking rewards of around 5% make ADA attractive for long-term holders.

However, macro headwinds persist, including rising interest rates and the potential for an economic recession. Additionally, ADA has lacked bullish catalysts and remains stuck below key moving averages. From a momentum perspective, traders may want to wait for a definitive trend reversal before buying.

Dollar-cost averaging can help mitigate timing risks for long-term investors. But in the near term, caution is warranted until ADA can post a decisive higher swing low and break above stiff overhead resistance. A drop below $0.20 would confirm the bears remain fully in control.

Conclusion

In summary, Cardano's price has seen a small 1.09% gain over the past 24 hours, buoyed by short-term oversold conditions on the daily chart. However, the multi-month downtrend remains intact, with ADA trading decisively below its key 200-day moving average.

While the crypto sell-off presents a long-term buying opportunity, caution is still warranted until definitive signs of a trend reversal emerge. This would entail a break above the falling price channel and 21-day moving average near $0.246.

Dollar-cost averaging can help mitigate timing risks for long-term investors who believe in Cardano's roadmap and staking rewards. But in the near-term, traders may want to wait for confirmation of an uptrend before getting overly bullish. Critical support levels to watch include $0.20 and $0.10.