ADA Price Prediction: Breaking Down Resistance at $0.345 Remains Key

Key Insights:

• On Tuesday, cardano (ADA) gained 1.51%, marking the third gain from eight sessions.
• The launch of the Binance recovery fund and US economic indicators provided ADA support.
• However, the technical indicators remained bearish, with ADA sitting below the 50-day EMA, leaving $0.300 in view.

On Tuesday, ADA rose by 1.51%. Following a 0.91% gain from Monday, ADA ended the day at $0.337. Notably, ADA wrapped up the day at sub-$0.400 for the seventh consecutive session while avoiding the November 9 low of $0.309.

A mixed morning saw ADA fall to an early low of $0.329. Steering clear of the First Major Support Level (S1) at $0.317, ADA rose to an early afternoon high of $0.344. However, coming up short of the First Major Resistance Level (R1) at $0.345, ADA fell back to $0.332 before wrapping up the day at $0.337.

Limited Input Output HK Updates Leave ADA Range-Bound

Input Output HK (IOHK) updates have been few and far between, leaving ADA range-bound in recent sessions. While hopes of a large influx of projects onto the Cardano network continue to limit the downside, ADA has failed to break a downward trend on the daily highs.

Total Value Locked (TVL) and NFT stats have likely contributed to the current ADA price trends.

According to DeFiLlama, the TVL stood at $55.98 million this morning. While up 3.24% over 24 hours, the TVL has tumbled 21.5% since $71.27 million on November 6. In contrast, the market cap is down 19.71% over the same period. A pickup in TVL would support a breakout from sub-$0.350 as crypto market conditions stabilize.

However, the TVL movement aligns with the broader market, which is down 21.77% to $43.76 billion over the same period.

NFT numbers have also seen a downward trend, according to OpenCNFT, which has also capped the upside.

And finally, the most recent weekly development figures showed little movement in project numbers on the Cardano network. Charles Hoskinson’s promise of an influx in projects would need to materialize to support a breakout from the broader market trend.

Until there is a shift in the above, price action will likely remain in the hands of the broader crypto market. While contagion fear lingers, US economic indicators and the NASDAQ Composite Index could provide direction later today.

Retail sales figures for October will draw interest. On Tuesday, ADA responded to US wholesale inflation numbers suggesting more orderly market conditions. However, the threat of another crypto exchange collapse leaves downside risks in play.

ADA Price Action

This morning, ADA was up 1.78% to $0.343. A bullish morning saw ADA rise from an early low of $0.336 to a high of $0.344. The First Major Resistance Level (R1) at $0.344 capped the upside.

Technical Indicators

ADA needs to avoid the $0.337 pivot to retarget the First Major Resistance Level (R1) at $0.344 and the Tuesday high of $0.344. A move through R1 would signal a possible breakout. However, ADA would also need the support of the broader market for a sustained rally.

In case of an extended rally, the Second Major Resistance Level (R2) at $0.352 would come into play. The Third Major Resistance Level (R3) sits at $0.367.

A fall through the pivot would bring the First Major Support Level (S1) at $0.329 into play. However, barring another extended sell-off, ADA should avoid sub-$0.325 and the Second Major Support Level (S2) at $0.322.

The Third Major Support Level (S3) sits at $0.307.

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

ADA sat below the 50-day, currently at $0.351. The 50-day EMA slipped back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA, delivering bearish signals.

A move through R1 ($0.344) would bring the 50-day EMA ($0.351) and R2 ($0.352) into play. However, failure to move through the 50-day EMA would leave sub-$0.330 support levels in view.