ADA Price Prediction: Bears Target Sub-$0.350 on IOHK Network Updates

Key Insights:

• On Tuesday, cardano (ADA) fell by 2.49%. Following a 5.20% slide on Monday, ADA ended the day at $0.391.
• Investor sentiment towards Input Output (IOHK) updates and central bank policy left ADA in negative territory.
• The technical indicators remain bearish, with ADA below the 50-day EMA to leave sub-$0.35 in play.

On Tuesday, ADA fell by 2.49%. Following a 5.20% slide on Monday, ADA ended the day at $0.391. Notably, ADA ended the session at sub-$0.40 for the first time since January 2021.

A bearish start to the day saw the ADA slide through the Major Support Levels to a low of $0.384. However, finding support through the morning, ADA struck a late afternoon high of $0.402. Falling short of the First Major Resistance Level (R1) at $0.4193, ADA slipped back to sub-$0.400.

Central bank policy took center stage on Tuesday, with the Bank of England driving risk aversion. Market sentiment towards Fed monetary policy and the economic outlook was also bearish for the session.

However, a lack of migration of projects to the Cardano network remains a focal point.

Input Output HK Updates Fail to Offset Ecosystem Project Numbers

On Tuesday, Input Output HK shared a series of tweets profiling female Cardano users and ambassadors in recognition of Ada Lovelace Day. However, while the list was impressive, the tweets failed to distract investor attention from the latest network numbers.

A large influx of projects in response to the Vasil hard fork would form a near-term bearish reversal. Last month, Hoskinson talked about hundreds of projects considering the Cardano network after the mainnet hard fork.

ADA Price Action

This morning, ADA was flat at $0.391. A mixed start to the day saw ADA fall to an early low o $0.390 before rising to a high of $0.394.

Technical Indicators

A move through the $0.392 pivot would target the First Major Resistance Level (R1) at $0.401 and the Tuesday high of $0.402. Sentiment from the broader crypto market would need to improve to support a return to $0.400. Favorable Cardano ecosystem updates would also support a recovery of the early losses.

In the case of a breakout session, ADA would likely test the Second Major Resistance Level (R2) at $0.410. The Third Major Resistance Level (R3) sits at $0.428.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.383 in play. However, barring another extended sell-off, ADA should avoid sub-$0.375 and the Second Major Support Level at $0.374. The Third Major Support Level (S3) sits at $0.356.

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

ADA sat below the 50-day EMA, currently at $0.418. The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMAs, delivering bearish signals.

A move through R1 ($0.401) and R2 ($0.410) would give the bulls a run at 50-day EMA ($0.418). The 200-day EMA sits at $0.443. However, failure to move through the 50-day EMA ($0.424) would likely leave the Major Support Levels in play.