ADA Price Prediction: Bears Target Sub-$0.300 on Risk Aversion

Key Insights:

• On Sunday, ADA fell by 0.32% to end the week up 0.32% to $0.313
• ADA was range-bound until a final-hour reversal, fueled by the NASDAQ mini that responded to news of social unrest in China.
• The technical indicators remain bearish, with ADA sitting at the 50-day EMA, to leave sub-$0.300 in view.

On Sunday, ADA ended the day with a 0.32% loss. After a flat Saturday session, ADA ended the week up 0.32% to $0.313.

A bullish morning saw ADA rise to a mid-morning high of $0.319. Falling short of the First Major Resistance Level (R1) at $0.320, ADA succumbed to broader market forces in the final hour, sliding to a low of $0.311. Steering clear of the First Major Support Level (S1) at $0.309, ADA wrapped up the day at $0.313.

It was another quiet session, with the US Thanksgiving Holidays leaving trading volumes on the lighter side.

Overnight, a lack of network news left ADA in the hands of the broader crypto market.

Charles Hoskinson Fails to Distract Investors from China News

In the final hour of the Sunday session (UTC), the NASDAQ mini kicked off the post-Thanksgiving holidays with a fall into negative territory.

Crude oil prices, the Hang Seng, the CSI300, and the DAX were also in the red. With little else for crypto investors to consider, the ADA and the crypto market tracked riskier assets into negative territory.

News of protests across China over the Chinese government’s zero-COVID policy and lockdown measures raised red flags. With new COVID-19 cases on the rise on Monday, stringent lockdown measures could disrupt supply chains and create uncertainty over inflation and economic growth.

Weekend updates from Input Output HK (IOHK) were not impressive enough to distract investors. Charles Hoskinson was also unable to distract investors from the news wires.

On Sunday, IOHK republished the weekly development report that showed a modest increase in projects on the Cardano network. Investors continue to hold out for an influx of projects following the Vasil hard fork.

Media outlets also continued to cover Charles Hoskinson’s response to the announcements of Aradana and Orbis halting projects on the Cardano network. Hoskinson failed to provide comfort, with the collapse of FTX shattering investor trust.

ADA Price Action

This morning, ADA was down 2.56% to $0.305. A bearish morning saw ADA slide from an early high of $0.314 to a low of $0.300.

ADA fell through the First Major Support Level (S1) at $0.310 and the Second Major Support Level (S2) at $0.306.

Technical Indicators

ADA has to move through the Major Support Levels and the $0.314 pivot to target the First Major Resistance Level (R1) at $0.318. Avoiding sub-$0.300 and a return to $0.315 would signal a breakout afternoon session. The NASDAQ Composite Index and FTX news updates will likely be focal points beyond Cardano network updates.

In case of an extended rally, the Second Major Resistance Level (R2) at $0.322 and $0.325 would come into play. The Third Major Resistance Level (R3) sits at $0.330.

Failure to move through the Major Support Levels and the pivot would leave the Third Major Support Level (S3) at $0.298 in play. However, barring an extended broad-based crypto sell-off, ADA should avoid the current-year low of $0.295.

Negative FTX-linked news would test support at $0.295.

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

ADA sat below the 50-day, currently at $0.316. The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.

An ADA move through the Major Support Levels would bring the 50-day EMA ($0.316) and R1 ($0.318) into play. However, failure to break out from the 50-day EMA would leave ADA under pressure and sub-$0.300 in view.