Key Insights:
- ADA ended the day flat for a second session on Sunday.
- There were no Input Output HK (IOHK) updates or crypto events to support a holiday move.
- The technical indicators remain bearish, signaling a possible return to sub-$0.255.
ADA ended the day flat at $0.259 for a second consecutive session on Sunday. Despite holding steady, ADA ended the week with a 2.63% loss. Notably, ADA ended the day at sub-$0.260 for the seventh day in a row while avoiding the red for the fourth successive session.
A bullish start to the day saw ADA rise to an early morning high of $0.260. Coming up short of the First Major Resistance Level (R1) at $0.261, ADA slid to a late afternoon low of $0.255. ADA fell through the First Major Support Level (S1) at $0.257.
However, finding support at the Second Major Support Level at $0.255, ADA revisited $0.260 before easing back.
Quiet Holiday Session Leaves ADA Flat for a Second Session
It was a quiet Sunday, with no updates from Input Output HK (IOHK) to provide direction. Over the holidays, the lack of updates left investors on the sidelines, leaving trading volumes at weekly lows before a late pickup.
Cardano-NFT trading volume continued the downward trend from Friday’s 30-day high. However, the pullback was likely because of the holidays, which limited the impact on investor sentiment.
On Sunday, trading volume stood at 778,923 ADA, down from $1,614,033.081 ADA on Friday.
While there was no commentary from Cardano founder Charles Hoskinson, Hoskinson is hosting a Special Twitter space. Any project news would draw investor interest.
For the day ahead, a lack of IOHK updates will likely deliver a range-bound session. However, investors should monitor the crypto news wires for events that could move the dial.
ADA Price Action
This morning, ADA was up 0.39% to $0.260. A choppier start to the day saw ADA fall to an early low of $0.257 before rising to a high of $0.262. ADA briefly broke through the First Major Resistance Level (R1) at $0.261.
Technical Indicators
ADA needs to avoid a fall through the $0.258 pivot to retarget the First Major Resistance Level (R1) at $0.261 and the morning high of $0.262. A move through the morning high of $0.262 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 $0.263. The Third Major Resistance Level (R3) sits at $0.265.
A fall through the pivot would bring the First Major Support Level (S1) at $0.256 into play. Barring an event-fueled sell-off, ADA should avoid sub-$0.255 and the Second Major Support Level (S2) at $0.253. The Third Major Support Level (S3) sits at $0.248.
This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.
ADA sat below the 50-day EMA, currently at $0.263. The 50-day EMA eased back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.
A move through R1 ($0.261) would support a run at R2 ($0.263) and the 50-day EMA ($0.263). However, failure to move through the 50-day EMA (0.263) would leave ADA at risk of a fall through S1 ($0.256).
