ADA Price Prediction: A Return to $0.60 Would Support a Run at $0.70

Key Insights:

• ADA eyes a fourth rise in five sessions in a bid to recover from Wednesday’s broad-based crypto sell-off.
• Today’s upside came despite a fall in total value locked (TVL). Investor reaction to progress on Cardano projects delivered support.
• Key technical indicators bullish. ADA sits above the 100-day EMA.

On Wednesday, ADA slid by 11.99%. Reversing a 9.99% slide on Tuesday, ADA ended the day at $0.5515.

Market reaction to upbeat manufacturing sector PMI numbers from the US weighed on investor appetite for riskier assets.

Despite the bearish sentiment, investor views on news updates from the Cardano network remained price positive.

Cardano Total Value Locked Hits Reverse

According to Defi Llama, Cardano’s total value locked (TVL) fell by 7.68% to $136.42 million.

For the broader DeFi space, the total value locked was down 3.24% to $108.37 billion.

Cardano’s downside in TVL relative to the market cap suggests further price losses. At the time of writing, Cardano’s total market cap was down 2.60% to $19,320 million.

With Cardano’s TVL price negative, liquidation figures were also negative.

The pace of total liquidations picked up over the last hour, suggesting an afternoon reversal.

According to Coinglass,

• Total crypto liquidations over the last 24-hours stood at $415.54 million, down from $593 million early in the session.
• For ADA, total liquidations over the past 24-hours stood at $4.27 million.
• Over the last hour, total liquidations were $456k, suggesting deteriorating market conditions.

While the indicators will draw investor interest, sentiment towards the Vasil Hard Fork delivered support following reports of Cardano development activity hitting an all-time high.

ADA Price Action

At the time of writing, ADA was up 3.52% to $0.5709.

A bullish start to the day saw ADA strike a high of $0.5859 before easing back.

ADA left the Major Support and Resistance Levels untested.

Technical Indicators

ADA will need to move through the $0.5730 pivot to test the First Major Resistance Level at $0.6094.

ADA would need broader crypto market support to a return to $0.60 levels.

In the event of an extended rally, ADA should test the Second Major Resistance Level at $0.6671.

Failure to move through the $0.5730 pivot would bring the First Major Support Level at $0.5153 into play.

Barring an extended sell-off throughout the day, ADA should avoid sub-$0.50 and the Second Major Support Level at $0.4785.

The EMAs and the 4-hourly candlestick chart (below) send a bullish signal. At the time of writing, ADA sits above the 100-day EMA, currently at $0.5513. This morning, the 50-day EMA narrowed to the 100-day EMA. The 100-day EMA closed in on the 200-day EMA; ADA positive.

A bullish cross of the 50-day EMA through the 100-day EMA would support a run at $0.65.