ADA comes under intense selling pressure despite progress towards the September 22 hard fork. Hawkish FOMC member chatter could add more pressure.
On Tuesday, ADA slid by 7.23%. Following a 1.19% loss on Monday, ADA ended the day at $0.462.
A mixed morning saw ADA rise to a mid-morning high of $0.513 before hitting reverse. ADA broke through the First Major Resistance Level (R1) at $0.509 before sliding to a late low of $0.460. ADA fell through the First Major Support Level (S1) at $0.485 and the Second Major Support Level (S2) at $0.472 to end the day at sub-$0.470.
Bearish sentiment across the broader market likely forced investors to lock in profits following last week’s 17.3% rally. The sell-off came despite positive Vasil hard fork updates.
Going into the US session, crypto market sentiment deteriorated, with US economic indicators adding further price pressures.
Overnight, Input Output HK shared the latest on the Vasil hard fork, with positive updates supporting the September 22 hard fork date.
As of September 6, updates on the ADA Hard Fork Mass Indicators are as follows:
Following the successful upgrade of 75% of SPO nodes to v1.35.3, the crypto market is tracking two critical mass indicators, these being,
Overnight, PoolTool showed that 83% of Cardano SPO nodes have upgraded to v1.35.3. While upgrade momentum has slowed, nodes achieved the 75% threshold last week.
This morning, ADA was down 1.52% to $0.455. A choppy start to the day saw ADA rise to an early high of $0.464 before falling to a low of $0.454.
ADA needs to move through the $0.478 pivot to target the First Major Resistance Level (R1) at $0.497. ADA needs to move through the $0.478 pivot to target the First Major Resistance Level (R1) at $0.497. While the Vasil hard fork remains positive, Binance and Coinbase need to upgrade to deliver ADA price support.
In the case of an extended crypto rally, ADA could test the Second Major Resistance Level (R2) at $0.531. Dovish FOMC member chatter would support a breakout from the Tuesday high of $0.513. The Third Major Resistance Level (R3) sits at $0.584.
Failure to move through the pivot would leave the First Major Support Level (S1) at $0.444 in play. However, barring another extended sell-off, ADA should avoid the Second Major Support Level (S2) at $0.425. Hawkish FOMC member chatter would bring sub-$0.43 into view. The Third Major Support Level (S3) sits at $0.372.
This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.
ADA sat below the 100-day EMA, currently at $0.474. The 50-day EMA converged on the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bullish signals.
A bearish cross of the 50-day EMA through the 100-day EMA would bring the Major Support Levels into play. However, a move through the EMAs would give the bulls a run at R1 ($0.497).
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.