ADA Price Prediction: A Hold onto $0.320 Would Bring $0.330 into Play

Key Insights:

• On Friday, ADA fell by 0.63% to end the day at $0.314.
• Network updates failed to deliver price support, with ADA joining the broader market in the red.
• The technical indicators remain bearish, with ADA sitting at the 50-day EMA, to leave sub-$0.300 in view.

On Friday, ADA fell by 0.63%. Following a 0.63% loss on Thursday, ADA ended the day at $0.314. Notably, ADA avoided sub-$0.300 for the third consecutive session.

A bearish start to the day saw ADA fall to an early morning low of $0.307. ADA fell through the First Major Support Level (S1) at $0.311. Finding mid-morning support, ADA rose to a late high of $0.317. However, falling short of the First Major Resistance Level (R1) at $0.321, ADA fell back to end the day in the red.

It was a quiet Friday session, with the US Thanksgiving Holiday leading to a slide in trading volumes. However, recent network updates have weighed on ADA, which fell short of $0.340 for a ninth consecutive session.

Input Output HK Weekly Development Update Fails to Impress

On Friday, Input Output HK (IOHK) released the Cardano Weekly Development Update. According to the November 25 release, key highlights include,

• Ongoing work on core technology improvements.
• Lace developments are progressing.
• SECP implementation is in the final stages.
• Hydra v.0.8.1 and Mithril 2246.1 distribution release.
• Cardano improvement proposal for Voltaire released.

More importantly, statistics to date were as follows:

• 106 projects launched on Cardano (up by two since November 12).
• Projects building on Cardano totaled 1,146, up from 1,139 on November 12.

Before the Vasil hard fork, the number of projects launched on Cardano had stood at 98, with 1,100 projects building on the Cardano network.

Other stats included 55.3 million transactions, 6.9 million tokens, and 65,539 token policies.

The latest numbers showed that the influx of projects in response to the Vasil hard fork has yet to materialize.

Founder Charles Hoskinson was also vocal at the end of the week. Hoskinson responded to a tweet relating to building stablecoins on Cardano, saying,

“It reminds me of when Mark Karpeles blamed Bitcoin for MtGox.”

The tweet was in response to a tweet from Duo Nine, which said,

“Turns out building a stablecoin on #Cardano is not possible. Development on Cardano has been difficult […] the underlying network on #ADA is currently not ideal for any protocol dealing with liquidations […] best course of action is halting development.”

Duo Nine reacted to Ardana’s Wednesday decision to halt its stablecoin development on the Cardano network.

An ADA price headwind would be news of more projects halting project development.

ADA Price Action

This morning, ADA was up 1.91% to $0.320. A bullish start to the day saw ADA rise from an early low of $0.314 to a high of $0.322.

ADA broke through the First Major Resistance Level (R1) at $0.318.

Technical Indicators

ADA needs to hold above R1 and the $0.313 pivot to target the Second Major Resistance Level (R2) at $0.323. Avoiding sub-$0.320 would signal a breakout session. Bullish crypto market sentiment would support a breakout from the early high.

In case of an extended rally, the Second Major Resistance Level (R2) at $0.323 and $0.330 would come into play. The Third Major Resistance Level (R3) sits at $0.333.

A fall through R1 and the pivot would bring the First Major Support Level (S1) at $0.308 into play. However, barring a broad-based crypto sell-off, ADA should avoid sub-$0.300. The Second Major Support Level (S2) at $0.303 should limit the downside. The Third Major Support Level (S3) sits at $0.293.

This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

ADA sat at the 50-day, currently at $0.319. The 50-day EMA flattened on the 100-day EMA, while the 100-day EMA fell back from the 200-day EMA, delivering mixed signals.

A breakout from the 50-day EMA ($0.319) would support a move through R2 ($0.323) to target and the 100-day EMA ($0.332). However, failure to break out from the 50-day EMA would leave S1 ($0.308) in play. The 200-day EMA sits at $0.353.