ADA Price Prediction: Bears Target Sub-$0.370 on LBRY and FTX Woes

Key Insights:

• On Monday, cardano (ADA) bucked the top-ten trend, rising by 0.50% to end the day at $0.404.
• However, news of the SEC winning its case against LBRY and the Binance FTX feud sent ADA into the deep red this morning.
• The technical indicators are bearish, with ADA sitting below the 100-day EMA, bringing $0.350 into view.

On Monday, ADA rose by 0.50%. Partially reversing a 5.63% slide from Sunday, ADA ended the day at $0.404. Notably, ADA avoided a sub-$0.400 finish for the fourth consecutive session.

A bearish morning saw ADA fall to a mid-morning low of $0.398 before making a move. Steering clear of the First Major Support Level (S1) at $0.392, ADA rose to a late high of $0.416. However, coming up short of the First Major Resistance Level (R1) at $0.422, ADA slid back to end the day at $0.404.

The Monday gain came despite a lack of Input Output HK updates to deliver price support.

Network News Takes a Backseat to FTX and LBRY News

It was a busy morning session. Bearish sentiment swept across the crypto market. News of the SEC winning its case against LBRY weighed on crypto investor appetite.

However, adding to the bearish mood was the FTX feud with Binance. News of Binance’s plans to sell off its FTX Tokens sent FTT down to a 2022 low of $15.07 before finding support.

With the Terra Labs collapse fresh in the mind of investors, fears of another crypto collapse have left FTT down 17.7% for the morning. The sell-off impacted the broader crypto market, which was down $38 billion to $936.9 billion this morning.

ADA Price Action

This morning, ADA was down 4.46% to $0.386. A bearish morning saw ADA fall from an early high of $0.406 to a low of $0.372.

ADA fell through the First Major Support Level (S1) at $0.396 and the Second Major Support Level (S2) at $0.388.

Technical Indicators

ADA needs to move through S2, S1, and the $0.411 pivot to target the First Major Resistance Level (R1) at $0.414. A return to $0.400 would signal a possible breakout. However, ADA would need the support of the broader market for a sustained rebound.

In case of an extended rally, the bulls would likely take a run at the Second Major Resistance Level (R2) at $0.424. Binance updates on its FTT plans will need to be crypto-friendly. The Third Major Resistance Level (R3) sits at $0.442.

Failure to move through S2, S1, and the pivot would leave the Third Major Support Level (S3) at $0.370 in play. However, barring an extended sell-off through the afternoon session, ADA should avoid sub-$0.370.

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

ADA sat below the 100-day, currently at $0.400. The 50-day EMA narrowed to the 200-day EMA, while the 100-day EMA pulled away from the 200-day EMA, delivering bearish signals.

A move through S2 and S1 would bring the 100-day EMA ($0.400) into view. A return to $0.400 would support an ADA move through the 200-day EMA ($0.402) to target the 50-day EMA ($0.406). However, a failure to move through S2, S1, and the 100-day EMA ($0.400) would give the bears a run at S3 ($0.370).