ADA Price Prediction: Bears Target Sub $0.310 on Mixed Risk Sentiment
- On Tuesday, ADA fell by 0.31%. Following a 0.93% loss on Monday, ADA ended the session at $0.318.
- Cardano network updates took a back seat, with the NASDAQ Composite leaving ADA in the red.
- The technical indicators are bearish, signaling a possible return to sub-$0.310.
On Tuesday, ADA fell by 0.31%. Following a 0.93% loss on Monday, ADA ended the day at $0.318. Notably, ADA avoided sub-$0.310 for a sixth consecutive session.
A bullish start to the day saw ADA rise to an early morning high of $0.321. Coming up short of the First Major Resistance Level (R1) at $0.327, ADA fell to a late morning low of $0.314. Finding support at the First Major Support Level (S1) at $0.314, ADA revisited $0.319 before easing back to end the day at $0.318.
Network News Takes a Back Seat as Bearish Sentiment Hits Riskier Assets
On Tuesday, COTI announced the reactivation of its public Testnet version 1.1.1 of Djed, saying,
“We are happy to share that the public Testnet version 1.1.1 of Djed has been reactivated with new capabilities such as Vasil hard fork compatibility, activity history, and more.”
The latest update followed comments from Cardano founder Charles Hoskinson on Saturday, who said,
“The concept of algorithmic stablecoins is how we get nation-states off of fiat currencies. It’s the gold standard of the digital age. Use a deflationary cryptocurrency like bitcoin or ADA to collateralize a stablecoin that’s used as a national currency.”
The comments come as investors look towards the planned launch of two stablecoins on the Cardano, which continues to deliver price support.
In late November, COTI issued a press release saying that Djed, Cardano’s over-collateralized algorithmic stablecoin, will go live on the mainnet this January 2023. Emurgo’s stablecoin USDA is also set to go live in the New Year.
However, while the progress of projects on the Cardano network is positive, a slide in the NASDAQ Composite Index left ADA trailing the broader crypto market.
Recent economic indicators have refueled bets of a hawkish Fed move next week, leaving the NASDAQ with a 2.00% loss on Tuesday.
ADA Price Action
This morning, ADA was down 0.31% to $0.317. A mixed morning saw ADA rise to an early high of $0.320 before falling to a low of $0.316.
ADA needs to move through the $0.318 pivot to target the First Major Resistance Level (R1) at $0.321. A return to $0.320 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 $0.325 and last week’s high of $0.326. The Third Major Resistance Level (R3) sits at $0.332.
Failure to through the pivot would leave the First Major Support Level (S1) at $0.314 in play. However, barring a risk-off-fueled sell-off, ADA should avoid sub-$0.310. The Second Major Support Level (S2) at $0.311 should limit the downside. The Third Major Support Level (S3) sits at $0.304.
This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.
ADA sat below the 50-day EMA, currently at $0.318. The 50-day EMA slipped back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA, delivering bearish signals.
An ADA breakout from the 50-day EMA ($0.318) would support a run at R1 ($0.321) and the 100-day EMA ($0.321). However, failure to move through the 50-day EMA ($0.318) would leave S1 ($0.314) in view.