ADA Price Prediction: Bears Eye Sub-$0.360 on IOHK News

Key Insights:

• ADA bucked the broader market trend, falling by 0.81% to end the session at $0.368.
• The weekly Input Output HK Development Report and US debt ceiling woes left ADA in negative territory.
• The technical indicators remained bearish, bringing sub-$0.365 into view.

ADA fell by 0.81% on Friday. Following a 1.33% loss from Thursday, ADA ended the day at $0.368. Despite the bearish session, ADA avoided sub-$0.365 for the first time in four sessions.

A bullish start to the day saw ADA rise to a first-hour high of $0.373 before hitting reverse. Coming up short of the First Major Resistance Level (R1) at $0.381, ADA slid to an early morning low of $0.366. Steering clear of the First Major Support Level (S1) at $0.361, ADA revisited the morning high of $0.373 before falling back into negative territory.

US Debt Crisis and Fed Chair Powell Test Buyer Appetite

It was a quiet Friday afternoon session, with no US economic indicators for investors to consider. The lack of stats left Fed chatter and US debt ceiling-related news to influence.

Fed Chair Powell eased bets of a June interest rate hike, saying rates may not need to rise as high as previously anticipated to tame inflation. Powell added that tighter credit conditions allow the Fed to take its foot off the gas.

However, the news of debt ceiling talks hitting a wall weighed on investor sentiment.

Input Output HK (IOHK) released the Weekly Development Report on Friday. An upswing in projects was modest, however.

According to the May 19 report,

• 127 projects launched on the Cardano network, up by one from May 12.
• Projects building on the Cardano network totaled 1,242, rising by two from the previous report.
• Plutus V2 scripts totaled 2,501. As of May 12, Plutus V2 scripts stood at 2,463.

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 66.7 million transactions (Previous Report: 66.3m), 8.28 million native tokens (PR: 8.24 million), and 73,880 token policies (PR: 73,114).

Network updates included,

• First manual compatible Hydra node released.
• New projects presented during the Project Catalyst town hall.

While the IOHK Weekly Update drew interest, Cardano Founder Charles Hoskinson was also in the spotlight.

On Friday, the Cardano Founder shared his views on the Ledger controversy, saying,

“Don’t break social contracts.”

The Day Ahead

Investors should monitor Input Output HK (IOHK) network updates. However, a lack of updates should leave ADA in the hands of the broader crypto market and US debt ceiling-related news. A lack of progress toward a debt ceiling deal would weigh.

SEC v Ripple-related news and Binance and Coinbase (COIN) chatter will move the dial.

ADA Price Action

This morning, ADA was down 0.54% to $0.366. A bearish start to the day saw ADA fall from an opening price of $0.368 to a low of $0.364. ADA briefly fell through the First Major Support Level (S1) at $0.365.

ADA Technical Indicators

Resistance & Support Levels

ADA has to move through the $0.369 pivot to target the First Major Resistance Level (R1) at $0.372 and the Friday high of $0.373. A return to $0.370 would support a bullish session. However, IOHK updates and US debt ceiling-related news would need to deliver support.

In the case of a breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.376. The Third Major Resistance Level (R3) sits at $0.383.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.365 in play. However, barring an extended broad-based crypto sell-off, ADA should avoid sub-$0.360. The Second Major Support Level (S2) at $0.362 should limit the downside. The Third Major Support Level (S3) sits at $0.355.

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

ADA sat below the 50-day EMA, currently at $0.370. The 50-day EMA fell back from the 200-day EMA, with the 100-day EMA easing back from the 200-day EMA, delivering bearish signals.

A move through the 50-day EMA ($0.370) would support a breakout from R1 ($0.372) to give the bulls a run at the 100-day EMA ($0.374) and R2 ($0.376). However, failure to move through the 50-day EMA ($0.370) would leave S1 ($0.365) in view. A move through the 50-day EMA would send a bullish signal.