ADA Price Prediction: Binance and the Fed To Test Buyers at Sub-$0.300

Key Insights:

• ADA rose by 2.28% on Tuesday to end the day at $0.314.
• Network updates took a back seat, with risk-on sentiment supporting ADA and the broader crypto market.
• However, the technical indicators remain bearish, signaling a possible return to sub-$0.290.

On Tuesday, ADA rose by 2.28%. After a flat Monday session, ADA ended the day at $0.314. Notably, ADA fell to sub-$0.300 for the first time since November 22.

A bearish start to the day saw ADA slide to a mid-morning low of $0.299. ADA fell through the First Major Support Level (S1) at $0.303. However, steering clear of the Second Major Support Level (S2) at $0.298, ADA rallied to an early afternoon high of $0.319.

ADA broke through the First Major Resistance Level (R1) at $0.310 and the Second Major Resistance Level at $0.312. Coming up against the Third Major Resistance Level (R3) at $0.319, ADA slid back to sub-$0.310 before finding late support.

ADA broke back through R1 and R2 to end the day at $0.314.

Silent IOHK Leaves ADA in the Hands of the Broader Crypto Market

It was another quiet day for Cardano, with no updates from Input Output HK (IOHK) to distract investors. The lack of network updates left price action in the hands of the broader crypto market.

Charles Hoskinson was back in the spotlight, however. Holding a session on Twitter, Hoskinson talked about the speed of SBF’s arrest, suggesting that investigations may have commenced before the collapse of FTX. Hoskinson also spoke about the possible shift in the regulatory landscape, noting that SBF may force regulators into rolling out more draconian controls.

While Hoskinson’s comments were of interest, there was nothing to distract investors.

On Tuesday, the US CPI Report delivered a bullish afternoon session. Softer-than-expected inflation numbers brought $0.320 back into play for the first time in six sessions.

However, Binance news capped the upside, with fears of a Binance liquidity crunch pegging ADA back from a more meaningful breakout.

Today, the market focus will shift to the Federal Reserve, the FOMC economic projections, and the Fed Chair Powell press conference.

While the Fed will move the dial, network updates and Binance news will also need monitoring.

ADA Price Action

This morning, ADA was down by 1.91% to $0.308. A mixed morning saw ADA rise to an early high of $0.316 before sliding to a low of $0.306.

Technical Indicators

ADA needs to move through the $0.311 pivot to target the First Major Resistance Level (R1) at $0.322. 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 $0.331. The Third Major Resistance Level (R3) sits at $0.351.

However, failure to move through the pivot would leave the First Major Support Level (S1) at $0.302 in play. In case of a risk-off-fueled sell-off, the Second Major Support Level (S2) at $0.291 should limit the downside. The Third Major Support Level (S3) sits at $0.271.

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

ADA sat below the 50-day EMA, currently at $0.311. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA, delivering bearish signals.

A move through the 50-day ($0.311) and the 100-day ($0.315) EMAs would support a run at R1 ($0.322). However, failure to move through the 50-day EMA ($0.311) would leave ADA under pressure. The 200-day EMA sits at $0.327.