ADA Price Prediction: A Return to $0.345 Would Bring $0.360 into Play

Key Insights:

• On Monday, cardano (ADA) rose by 0.91%, marking the second gain from seven sessions.
• While FTX updates and contagion fear weighed, Binance delivered much-needed support.
• The technical indicators remained bearish, with ADA sitting below the 50-day EMA, leaving $0.300 in view.

On Monday, ADA rose by 0.91%. Partially reversing a 2.95% fall from Sunday, ADA ended the day at $0.332. Notably, ADA wrapped up the day at sub-$0.400 for the sixth consecutive session while avoiding the November 9 low of $0.310.

A bearish morning saw ADA fall to an early low of $0.314. ADA fell through the First Major Support Level (S1) at $0.321 before rallying to an early afternoon high of $0.342. Coming up against the First Major Resistance Level (R1) at $0.341, ADA fell back to $0.321 before wrapping up the day at $0.332.

Binance Eases Contagion Fear to Provide ADA Price Support

Through the early part of the Monday session, FTX news and contagion fear weighed on investor appetite. However, investors found much-needed relief mid-morning on news of Binance launching a recovery fund. Binance CEO CZ announce the news on Twitter, saying,

“To reduce further cascading negative effects from FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance labs if you think you qualify,”

CZ added,

“Also welcome other industry players with cash who wants to co-invest. Crypto is not going away. We are still here. Let’s rebuild.”

Following Monday’s announcement, the devil will be in the details. With contagion fear unlikely to subside over the near term, the size of the recovery fund, qualification criteria, and terms will need consideration.

On Monday, Tron founder Justin Sun announced that Tron, Huobi Global, and Polinex support the Binance recovery fund project.

The collapse of FTX, contagion risk, and updates on the recovery fund will likely overshadow network updates. However, as the dust settles, crypto regulation and network developments will likely become focal points as investors try to distinguish the likely winners from the latest crypto market crash.

This morning, the crypto news wires were quieter, supporting bullish ADA price action.

ADA Price Action

This morning, ADA was up 2.41% to $0.340. A mixed morning saw ADA fall to an early low of $0.329 before rising to a high of $0.341.

Technical Indicators

ADA needs to avoid the $0.329 pivot to target the First Major Resistance Level (R1) at $0.345. A move through the Monday high of $0.341 would signal a possible breakout. However, ADA would also need the support of the broader market for a sustained rebound.

In case of an extended rally, the Second Major Resistance Level (R2) at $0.357 and $0.360 would come into play. The Third Major Resistance Level (R3) sits at $0.385.

A fall through the pivot would bring the First Major Support Level (S1) at $0.317 into play. However, barring another extended sell-off, ADA should avoid sub-$0.310 and the Second Major Support Level (S2) at $0.301.

The Third Major Support Level (S3) sits at $0.273.

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

ADA sat below the 50-day, currently at $0.353. The 50-day EMA eased back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.

A move through R1 ($0.345) would bring the 50-day EMA ($0.353) and R2 ($0.357) into play. However, failure to move through the 50-day EMA would leave ADA under pressure and bring sub-$0.320 support levels into view.