The Australian Dollar (AUD) staged a notable recovery on Monday, buoyed by a combination of improved global market sentiment and positive signals from China.
China’s leadership has pledged to implement more proactive fiscal policies and looser monetary measures in 2023 to stimulate domestic consumption. This announcement, ahead of the crucial Central Economic Work Conference, has ignited speculation about further stimulus measures.
While weak Chinese Consumer Price Index (CPI) data, which contracted by 0.6% in November, might have dampened sentiment, the anticipation of additional stimulus has outweighed the negative impact. This development has provided a much-needed boost to the Australian Dollar, which is closely tied to China’s economic health.
RBA Rate Decision in Focus
In Australia, market participants are eagerly awaiting the Reserve Bank of Australia’s (RBA) monetary policy decision on Tuesday. While the central bank is expected to maintain the cash rate at its current level of 4.35%, investors will be closely watching for clues about the potential timing of an easing cycle.
Governor Philip Lowe’s commentary on this matter will likely be a key driver of the Australian Dollar’s near-term direction. If Lowe strikes a dovish tone, suggesting that rate cuts may be on the horizon, the AUD could face downward pressure. Conversely, a more hawkish stance could support the currency.
As the global economic landscape continues to evolve, the Australian Dollar’s performance will remain intertwined with developments in China and the RBA’s monetary policy decisions. Investors will be closely monitoring these factors to gauge the currency’s future trajectory.
Cardano (ADA) is down more than 6% on Thursday but remains up nearly 40% over the past seven days. After surging to $1.15 following its inclusion in the US crypto strategic reserve, ADA has struggled to stay above $1 in recent days.
Some users are now questioning its inclusion in the reserve, raising concerns about its price. With whale accumulation slowing and resistance at $1 proving difficult to break, ADA’s next move will depend on whether bullish momentum can return or if selling pressure pushes it lower.
ADA ADX Shows The Uptrend Is Still Strong, But It’s Not As Strong As Before
Despite the decline in ADX, it remains above the 25 threshold, indicating that the ongoing uptrend still has strength, though momentum has slightly weakened.
The Average Directional Index (ADX) measures trend strength on a scale from 0 to 100, with readings above 25 signaling a strong trend and values below 20 suggesting weak or nonexistent momentum.
With ADA in an uptrend and ADX at 32.5, the trend remains intact but may not be as strong as it was three days ago.
If ADX continues to decline, the trend could lose momentum, leading to a potential slowdown or consolidation. However, if ADX stabilizes or rises again, ADA could maintain its upward trajectory and push toward new resistance levels.
Cardano Whales Are Not Accumulating
The number of Cardano whales – addresses holding between 1 million and 10 million ADA – has declined slightly in the past few days after a strong increase between March 1 and March 4, when it rose from 2,442 to 2,471.
Addresses Holding Between 1 Million and 10 Million ADA. Source: Santiment.
Tracking these whales is important because large holders can influence market liquidity, volatility, and price trends. A rising number of whales often signals accumulation, which can drive prices higher, while a decline suggests potential profit-taking or reduced confidence.
With the current whale count slightly below its recent surge, ADA’s recent uptrend could slow if more large holders begin selling. However, if accumulation resumes, it could support continued price gains.
Will Cardano Test $1 Soon?
Cardano’s EMA lines indicate a bullish trend, with short-term EMAs positioned above long-term ones.
However, despite this positive setup, Cardano price has struggled to break above $1 in recent days after a sharp correction following its 71% surge on March 2. This suggests that while momentum remains intact, resistance at $1 is proving difficult to overcome.
If the current uptrend reverses into a downtrend, ADA could test support at $0.818, with a break below that level potentially leading to $0.75. A stronger selloff could push the price as low as $0.63 or even $0.58.
On the other hand, if ADA regains momentum, it could test $1 again, and a breakout above this key resistance could send the price toward $1.17, a level it nearly reached during the March 2 surge.
