ADA Price Prediction: Bears to Retarget $0.330 as Contagion Fear Grows
- On Friday, cardano (ADA) joined the broader market in the red, falling by 3.8% to end the day at $0.354.
- FTX bailout hopes played second fiddle to news of FTX.US filing for bankruptcy and early signs of contagion.
- The technical indicators remained bearish, with ADA sitting below the 50-day EMA, leaving $0.300 in view.
On Friday, ADA fell by 3.80%. Partially reversing a 16.09% rally from Thursday, ADA ended the day at $0.354. Notably, ADA wrapped up the day at sub-$0.400 for the fourth consecutive session.
A mixed morning saw ADA rise to an early high of $0.373. Coming up short of the First Major Resistance Level (R1) at $0.394, ADA slid to an early afternoon low of $0.341. However, steering clear of the First Major Support Level (S1) at $0.327, ADA revisited $0.356 before easing back.
Input Output HK Updates Fail to Mute FTX News
On Friday, Input Output HK (IOHK) released the Cardano Weekly Development statistics.
According to the latest report,
- 104 projects launched on Cardano, unchanged from the previous week.
- Projects building on Cardano totaled 1,139, up by nine from the previous week.
Other stats included 54.1 million transactions, 6.7 million native tokens, and 64,739 token policies.
Before the Vasil hard fork, the number of projects launched on Cardano had stood at 98, with 1,100 projects building on the Cardano network.
While there was a pickup in the number of projects building on Cardano, the latest update failed to reverse losses from the session.
FTX updates weighed on crypto investor appetite, with news of FTX.US filing for bankruptcy sending the broader crypto market deep into the red. FTX CEO Sam Bankman-Fried stepped down as CEO on filing for bankruptcy. Early signs of contagion added further selling pressure.
However, Founder Charles Hoskinson provided assurances that Cardano has no FTX exposure this week that cushioned the downside while other top ten members saw heavier losses.
ADA Price Action
This morning, ADA was down 1.69% to $0.348. A mixed start to the day saw ADA rise to an early high of $0.355 before falling to a low of $0.345.
ADA needs to move through the $0.356 pivot to target the First Major Resistance Level (R1) at $0.371 and the Friday high of $0.373. A return to $0.370 would signal a possible breakout. However, ADA would also need the support of the broader market for a sustained rebound. FTX and contagion news will remain key drivers.
In case of an extended rally, the bulls would likely take a run at the Second Major Resistance Level (R2) at $0.388. The Third Major Resistance Level (R3) sits at $0.420.
Failure to move through the pivot would leave the First Major Support Level (S1) at $0.339 in play. However, barring another extended sell-off, ADA should avoid sub-$0.300. The Second Major Support Level (S2) at $0.324 should limit the downside.
The Third Major Support Level (S3) sits at $0.292.
This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.
ADA sat below the 50-day, currently at $0.377. 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.
A move through R1 ($0.371) and the 50-day EMA ($0.377) would support a run at the 100-day EMA ($0.385) and R2 ($0.388). However, failure to move through R1 and the 50-day EMA would leave ADA under pressure and bring S1 ($0.339) into play.