ADA Price Prediction: A Return to $0.450 in the Hands of US PMIs

Key Insights:

• On Tuesday, cardano (ADA) rose by 1.87% to end the session at $0.436.
• Investor sentiment toward recent Cardano network updates left ADA trailing the crypto top ten.
• The technical indicators remain bearish, with ADA below the 50-day EMA to leave sub-$0.40 in play.

On Tuesday, ADA rose by 1.87%. Following a 2.15% gain on Monday, ADA ended the day at $0.436.

A bearish start to the session saw ADA fall to an early low of $0.425. Steering clear of the First Major Support Level (S1) at $0.420, ADA rallied to a high of $0.438. ADA broke through the First Major Resistance Level (R1) at $0.433 and the Second Major Resistance Level (R2) at $0.437 before ending the day at $0.436.

US Economic Indicators Offset Bearish Sentiment Towards Network Updates

Investor focus shifted to US economic indicators for a second session. Falling bets of a 75-basis point Fed rate hike have been the key to the current week’s bullish trend.

On Tuesday, JOLTs job openings slid from 11.170 million to 10.053 million in August. Economists forecast a fall to 10.775 million. FOMC member Mary Daly also delivered some comfort, saying that the Fed has the ways and the means to bring inflation under control in the gentlest way possible.

Tuesday’s numbers and Fed chatter followed softer ISM Manufacturing PMI and sub-Index numbers from Monday.

While the latest numbers and FOMC member chatter have been crypto-friendly, Cardano network updates have pegged ADA back from a post-Vasil hard fork breakout. Since the mainnet hard fork, project numbers have yet to significantly increase.

However, there were no updates overnight to influence, with investors waiting for the next Input Output HK weekly update for the latest project numbers.

ADA Price Action

This morning, ADA was down 0.69% to $0.433. A mixed start to the day saw ADA rise to an early high of $0.437 before falling to a low of $0.432.

Technical Indicators

ADA has to avoid a fall through the $0.433 pivot to target the First Major Resistance Level (R1) at $0.441. US economic indicators and central bank chatter would have to be crypto-friendly to support another bullish session.

In the case of a breakout session, the Second Major Resistance Level (R2) at $0.446 and $0.450 would likely come into view. The Third Major Resistance Level (R3) sits at $0.459.

A fall through the pivot would bring the First Major Support Level (S1) at $0.428 into play. However, barring an extended sell-off, ADA should avoid sub-$0.425 and the Second Major Support Level at $0.420. The Third Major Support Level (S3) sits at $0.407.

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

ADA sat below the 50-day, currently at $0.435. The 50-day EMA eased back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMAs, delivering bearish signals.

An ADA move through the 50-day EMA ($0.435) would give the bulls a run at R1 ($0.441) and the 100-day EMA ($0.444). The 200-day EMA sits at $0.456. However, failure to move through the 50-day EMA would leave ADA under pressure.