ADA Price Prediction: Bulls Eye $0.325 on Hopes of a December Fed Pivot

Key Insights:

• On Tuesday, ADA rose by 0.98% to end the day at $0.309. While ADA ended a two-day losing streak, ADA trailed the top ten cryptos.
• A shift in sentiment towards China’s zero-COVID policy led to decoupling from the NASDAQ Composite Index.
• The technical indicators remain bearish, with ADA sitting at the 50-day EMA, to leave sub-$0.300 in view.

On Tuesday, ADA rose by 0.98%. Partially reversing a 2.24% loss from Monday, ADA ended the day at $0.309.

A mixed start to the day saw ADA fall to an early morning low of $0.304. Steering clear of the First Major Support Level (S1) at $0.299, ADA rose to a late morning high of $0.312. However, coming up short of the First Major Resistance Level (R1) at $0.313, ADA fell back to $0.306 before ending the day in positive territory.

China and Fed Chair Powell Are Market Focal Points Mid-Week

On Tuesday, the investors experienced a reversal of fortunes. Hopes of the Chinese government easing COVID lockdown measures drove demand for riskier assets. The upside came despite no government hints of a shift in policy.

ADA and the broader market avoided tracking the NASDAQ Composite into negative territory. Market apprehension towards Fed Chair Powell’s speech later today left the NASDAQ in the red.

This morning, weak economic indicators from China and reports of more protests in China failed to spook investors.

Later today, Fed Chair Powell could give investors policy guidance. Powell will speak about the economy and the labor market late in the US session. Ahead of the Powell speech, GDP, ADP nonfarm employment change, and JOLTs job openings will draw interest. However, we expect the labor market numbers to have more influence on riskier assets.

There were no updates from Input Output HK (IOHK) or founder Charles Hoskinson to influence, leaving ADA in the hands of Powell and the NASDAQ Composite Index today. The NASDAQ mini was up 22.75 points this morning.

ADA Price Action

This morning, ADA was up 1.94% to $0.315. A bullish morning saw ADA rise from an early low of $0.308 to a high of $0.319.

ADA broke through the First Major Resistance Level (R1) at $0.313 and briefly through the Second Major Resistance Level (R2) at $0.316.

Technical Indicators

ADA needs to avoid falling through R1 and the $0.308 pivot to retarget the Second Major Resistance Level (R2) at $0.316 and the morning high of $0.319. A return to $0.319 would support a bullish afternoon session.

In case of an extended rally, the Third Major Resistance Level (R3) at $0.324 and $0.325 would come into play.

A fall through R1 and the pivot would bring the First Major Support Level (S1) at $0.305 into play. However, barring a risk-off-fueled sell-off, ADA should avoid sub-$0.300. The Second Major Support Level (S2) at $0.300 should limit the downside.

Hawkish Fed chair Powell chatter could reverse bets of a Fed pivot that would bring sub-$0.300 into view.

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 at the 50-day EMA, currently at $0.314. The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA fell back from the 200-day EMA, delivering mixed signals.

An ADA breakout from the 50-day EMA ($0.314) would support a move through R2 ($0.316) to bring R3 ($0.324) into play. However, a slide through the 50-day EMA and R1 ($0.313) would support a fall through S1 ($0.305) to bring S2 ($0.300) into view.