ADA Price Prediction: A Return to $0.37 Would Signal a run at $0.380

Key Insights:

• On Sunday, cardano (ADA) rose by 1.65% to end a six-day losing streak.
• A lack of network updates left ADA in the hands of the broader crypto market, which enjoyed a bullish end to a bearish week.
• The technical indicators remain bearish, with ADA below the 50-day EMA to leave sub-$0.30 in play.

On Sunday, ADA rose by 1.65%. Reversing a 0.82% decline from Saturday, ADA ended the week down 12.53% to $0.370. Notably, ADA ended the session at sub-$0.40 for the sixth consecutive session. However, the bullish session ended a six-day losing streak.

A bullish start to the day saw ADA rise from an early morning low of $0.364 to a late high of $0.375. ADA broke through the First Major Resistance Level (R1) at $0.369 and the Second Major Resistance Level (R2) at $0.374 before falling back through R2 to end the day at $0.370.

Dip buyers returned on Sunday, with ADA finding support off the back of six consecutive sessions in the red. However, Input Output HK (IOHK) network updates remained price negative.

Network Updates and Fed Fear Remain Crypto Headwinds

On Sunday, the crypto market ended a mini two-day losing streak to reduce the deficit for the week. However, increasing market bets of 75-basis point Fed rate hikes in November and December have weighed on riskier assets.

IOHK network updates have added further downward price pressures, with project numbers failing to impress.

Following the Vasil hard fork, investors had anticipated an influx of new projects onto the Cardano network to drive ADA adoption. However, the influx has yet to happen, leading ADA to a 2022 and an October low of $0.350.

The weekly movements reflect the negative sentiment, with ADA falling in three of the last four weeks. Since September 22, ADA has fallen by 20.8% versus the crypto market, which is down 3.09%.

Going into the weekend, Input Output HK shared the weekly development report as of October 14. Network highlights from the weekly development report included,

• Ongoing work on core technology improvements.
• Upcoming Daedalus release to resolve the min-fee calculation issue.
• 102 projects launched on Cardano, unchanged from the previous week.
• 1,120 projects are building on Cardano, up by three from the previous week.

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. In September, Cardano founder Hoskinson talked about hundreds of projects considering the Cardano network after the mainnet hard fork.

ADA Price Action

This morning, ADA was down 0.54% to $0.368. A bearish start to the day saw ADA fall from an early high of $0.371 to a low of $0.368.

Technical Indicators

ADA needs to move through the $0.370 pivot to target the First Major Resistance Level (R1) at $0.375 and the Sunday high of $0.375. However, following the latest IOHK weekly update, ADA would need broader market support to break out from the morning high of $0.371.

In the case of a breakout session, ADA would likely test the Second Major Resistance Level (R2) at $0.381. The Third Major Resistance Level (R3) sits at $0.392.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.364 in play. In the case of an extended sell-off, the Second Major Support Level at $0.359 should limit the downside. The Third Major Support Level (S3) sits at $0.348.

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

ADA sat below the 50-day, currently at $0.386. The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMAs, delivering bearish signals.

A move through R1 ($0.375) and R2 ($0.381) would give the bulls a run at the 50-day EMA ($0.386). The 200-day EMA sits at $0.425. However, failure to move through the 50-day EMA ($0.386) would leave ADA under pressure.