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ADA Price Prediction: Bears Eye $0.350 on Binance-Related News

By:
Bob Mason
Published: Mar 25, 2023, 01:50 GMT+00:00

It was a bearish Friday session, with the weekly IOHK development update providing ADA with little price support as Binance news weighed on sentiment.

ADA Tech Analysis - FX Empire

In this article:

Key Insights:

  • ADA joined the broader crypto market in a bearish session on Friday, falling by 3.23% to end the day at $0.360.
  • Input Output HK (IOHK) weekly development updates took a back seat as investors responded to Binance news and banking sector jitters from Europe.
  • However, the technical indicators remained bullish, leaving $0.40 in play.

ADA fell by 3.23% on Friday. Reversing a 3.05% gain from Thursday, ADA ended the day at $0.360. Significantly, ADA avoided a return to sub-$0.350 for the second consecutive session.

A mixed start to the day saw ADA rise to an early high of $0.373 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.388, ADA fell to a late low of $0.355. However, finding support at the First Major Support Level (S1) at $0.355, ADA wrapped up the day at $0.360.

Investors Brush Aside the IOHK Weekly Development Report

Input Output HK (IOHK) released the Weekly Development Report on Friday. The numbers continued to disappoint, with new projects launched on the Cardano network stalling for the third time in four weeks. Regulatory uncertainty and lawmaker scrutiny could be affecting project launches.

According to the March 24 report,

  • 118 projects launched on the Cardano network, unchanged from March 17.
  • Projects building on the Cardano network totaled 1,215, up by two from the previous report.
  • Plutus scripts totaled 7,489, of which 2,275 were Plutus V2 scripts. As of March 17, Plutus scripts stood at 6,052.

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 63.5 million transactions (Previous Report: 63.0m), 8.03 million native tokens (PR: 7.97 million), and 70,937 token policies (PR: 70,737).

Binance and European Banking News Weigh on Investor Sentiment

The disappointing weekly development update numbers left ADA in the hands of the broader crypto market.

News of Binance suspending deposits and withdrawals because of a temporary glitch sent ADA and the crypto market into negative territory. News of Binance employees aiding users to evade KYC protocols was also bearish.

The latest news on Binance will likely draw more regulatory and lawmaker scrutiny at a time when US lawmakers and regulators are already investigating the platform’s dealings.

The Day Ahead

Input Output HK (IOHK) updates will continue to draw attention. However, a lack of network news should leave ADA in the hands of the broader crypto market.

Investors should continue monitoring regulatory activity, with US regulators and lawmakers turning the screw on the digital asset space. Binance and Coinbase (COIN) are currently in the spotlight.

Banking sector-related news will also move the dial. Deutsche Bank (DB) shares slid by 8.53% on Friday as investors shifted their focus from Credit Suisse Group AG (CS) to the German bank. The markets are looking for the next big bank to need support.

ADA Price Action

This morning, ADA was up 0.28% to $0.361. A range-bound start to the day saw ADA slip to an early low of $0.359 before rising to a high of $0.361.

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Technical Indicators

ADA has to move through the $0.363 pivot to target the First Major Resistance Level (R1) at $0.370 and the Friday high of $0.373. A return to $0.365 would support a bullish session. However, Cardano network updates and the broader crypto market would need to provide support.

In case of a breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.381. The Third Major Resistance Level (R3) sits at $0.399.

Failure to move through the pivot ($0.363) would leave the First Major Support Level (S1) at $0.352 in play. However, barring another extended crypto sell-off, ADA should avoid sub-$0.350 and the Second Major Support Level (S2) at $0.345. The Third Major Support Level (S3) sits at $0.327.

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Today, the EMAs and the 4-hourly candlestick chart (below) sent bullish signals.

ADA sat above the 50-day EMA, currently at $0.355. The 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

Avoiding the 50-day EMA ($0.355) would support a breakout from R1 ($0.370) to give the bulls a run at R2 (0.381). However, a fall through the 50-day EMA ($0.355) would bring the S1 ($0.352) and the 200-day EMA ($0.350) into view. A slide through the 50-day EMA would send a bearish signal and give the bears a run at the Major Support Levels.

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About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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