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ADA Price Prediction: Bears Eye $0.40 as Bearish Trend Continues

By:
Bob Mason
Published: Sep 29, 2022, 13:27 UTC

Following a bearish Wednesday session, ADA has struggled to find support today. Investors may be waiting on a flood of projects before jumping in.

ADA technical analysis - FX Empire.

Key Insights:

  • On Wednesday, cardano (ADA) fell by 1.13%. Following a 1.34% loss on Tuesday, ADA ended the day at $0.436.
  • The fifth loss from six sessions came despite positive post-hard fork chatter and a bullish day for the broader crypto market.
  • The technical indicators are bearish. With ADA sitting below the 50-day EMA, sub-$0.40 remains in play.

On Wednesday, ADA fell by 1.13%. Following a 1.34% loss on Tuesday, ADA ended the day at $0.436.

A bearish start to the Wednesday session saw ADA fall to a morning low of $0.425. ADA fell through the First Major Support Level (S1) at $0.431 before rallying to a late high of $0.443. However, coming up short of the First Major Resistance Level (R1) at $0.457, ADA fell back to sub-$0.440.

Cardano Updates Fail to Deliver Support Amidst a Bearish Backdrop

On Wednesday, ADA bucked the broader market trend. The crypto market cap rose by $14.1 billion to $910.0 billion. While ADA was not alone in the red, the downward trend follows a similar trend to that of ethereum (ETH) in the wake of the Ethereum Merge.

The decline may not be as significant, but the fall back towards $0.40 comes despite some upbeat Cardano network commentary.

At Mainnet 2022, Cardano founder Charles Hoskinson spoke of venture capitalists targeting the Cardano ecosystem in numbers by 2024. Hoskinson had previously talked about hundreds of projects considering the Cardano network after the mainnet hard fork.

This week, there were reports of Emurgo, Cardano’s developer, planning to invest a substantial sum to support the development of the Cardano ecosystem.

Considering the recent trend and network news, investors will likely be looking for a surge in projects on the Cardano network before investing. Considering the timelines shared by Hoskinson for VCs to hit the ecosystem, investors may need to be patient. ADA was down 27.2% from an August high of $0.595.

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 $0.439 before falling to a low of $0.429.

ADA under pressure.
ADAUSD 290922 Daily Chart

Technical Indicators

ADA has to move through the $0.435 pivot to target the First Major Resistance Level (R1) at $0.444. A marked shift in risk sentiment would be needed to support a breakout from the Wednesday high of $0.443.

In the case of a breakout session, the Second Major Resistance Level (R2) at $0.453 would likely come into view. The Third Major Resistance Level (R3) sits at $0.471.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.426 in play. However, barring an extended sell-off, ADA should avoid sub-$0.420 and the Second Major Support Level at $0.417. The Third Major Support Level (S3) sits at $0.399.

ADA support levels in play below the pivot.
ADAUSD 290922 Hourly Chart

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

ADA sat below the 50-day, currently at $0.448. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMAs, delivering bearish signals.

A move through R1 ($0.444) and the 50-day EMA ($0.448) would give the bulls a run at R2 ($0.453) and the 100-day EMA ($0.456). The 200-day EMA sits at $0.466. However, failure to move through the 50-day EMA would leave ADA under pressure.

EMAs bearish.
ADAUSD 290922 4-Hourly Chart

 

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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