ADA Price Prediction: Bears Eye a Pullback to Sub-$0.240

Key Insights:

• ADA slid by 4.62% on Wednesday to end the day at $0.248.
• Cardano-linked news failed to provide support, with a bearish NASDAQ Index and a lack of IOHK network updates weighing.
• The technical indicators remain bearish, signaling a possible return to sub-$0.240.

ADA slid by 4.62%. Following a 1.89% decline on Tuesday, ADA ended the day at $0.248. Notably, ADA ended the day at sub-$0.250 for the first time since January 2021.

A mixed start to the day saw ADA rise to an early high of $0.261 before hitting reverse. Coming up short of the First Major Resistance Level (S1) at $0.0265, ADA slid to a late low of $0.247. ADA fell through the First Major Support Level (S1) at $0.255 and the Second Major Support Level (S2) at $0.251 to end the day at $0.248.

COVID-19, Recession Fears, and the NASDAQ Index Overshadow ADA News

It was a quiet Wednesday session, with no Input Output HK updates to distract investors from the bearish market sentiment. The lack of updates left ADA in the hands of COVID-19 news from China, fears of a recession, and Fed monetary policy.

The latest surge in new COVID-19 cases in China has raised concerns over the likely spread of new variants and governments introducing border controls for travelers from China. A more virulent strain of the coronavirus could lead to governments reintroducing lockdown measures that would likely have catastrophic effects on the global economy.

The bearish sentiment left the NASDAQ Index down 1.35%, removing hopes of a holiday rally.

Cardano news failed to cushion the downside. On Wednesday, Trust Wallet (TWT) announced that users can stake ADA on Apple devices run on an iOS system, saying,

“Hey iOS users! You can now stake ADA too, easily and directly in your Trust Wallet!”

With the bears in control, it could be another choppy session. A lack of IOHK updates or Charles Hoskinson commentary would leave the broader market and the NASDAQ Index to provide direction. US jobless claims figures could fuel bets of a more hawkish Fed that would test buyer appetite.

ADA Price Action

This morning, ADA was down 0.81% to $0.246. A bearish start to the day saw ADA fall from an early high of $0.248 to a low of $0.242.

ADA briefly fell through the First Major Support Level (S1) at $0.243.

Technical Indicators

ADA needs to move through the $0.252 pivot to target the First Major Resistance Level (R1) at $0.257 and the Wednesday high of $0.261. A return to $0.260 would signal a bullish session. However, ADA would need the broader market to support a breakout afternoon session.

In the event of an extended rally, the bulls will likely take a run at the Second Major Resistance Level (R2) at $0.266. The Third Major Resistance Level (R3) sits at $0.280.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.243 in play. Barring another sell-off, ADA should avoid sub-$0.235. The Second Major Support Level (S2) at $0.238 should limit the downside. The Third Major Support Level (S3) sits at $0.224.

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

ADA sat below the 50-day EMA, currently at $0.260. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA, delivering bearish signals.

A move through R1 ($0.257) and the 50-day EMA ($0.260) would support a run at R2 ($0.266) and the 100-day EMA ($0.270). However, failure to move through the 50-day EMA (0.260) would leave sub-$0.240 in view.