ADA Price Prediction: Bulls Eye $0.330 on Softer US Inflation Numbers

Key Insights:

• On Wednesday, ADA rose by 3.24% to end the day at $0.319.
• News of China planning to ease COVID-19 lockdown measures and Fed Chair Powell delivered a bullish session.
• However, ADA was under pressure this morning, with US inflation figures capable of derailing Powell’s pivot talk.

On Wednesday, ADA rose by 3.24%. Following a 0.98% gain from Tuesday, ADA ended the day at $0.319.

A mixed start to the day saw ADA fall to an early morning low of $0.308. Steering clear of the First Major Support Level (S1) at $0.305, ADA rose to a late high of $0.321. ADA broke through the First Major Resistance Level (R1) at $0.324 and the Second Major Resistance Level (R2) at $0.316 to end the day at $0.319.

Fed Chair Powell and the NASDAQ Composite Index Deliver ADA Support

On Wednesday, investor sentiment towards the protests across China shifted. Reports of the Chinese government planning to ease lockdown measures supported a breakout morning. However, apprehension ahead of Fed Chair Powell’s speech and mixed US economic indicators led to a pullback before a late rally.

Fed Chair Powell talked about easing the pace of interest rate hikes, driving demand for riskier assets. The NASDAQ Composite Index rallied by 4.41%, with the crypto market ending the session up 3.98% to $820.7 billion.

There were no network updates from Input Output HK or founder Charles Hoskinson to influence ahead of tomorrow’s weekly development update.

The lack of network updates will likely leave ADA in the hands of the US economic calendar and the NASDAQ Composite Index today. Softer inflation figures and dovish FOMC member chatter would support another bullish session.

The NASDAQ mini was down 34 points this morning.

ADA Price Action

This morning, ADA was down 0.31% to $0.318. A bearish morning saw ADA fall from an early high of $0.320 to a low of $0.314 before steadying.

Technical Indicators

ADA needs to avoid the $0.316 pivot to retarget the First Major Resistance Level (R1) at $0.324. A move through the Wednesday high of $0.321 would signal a breakout session. However, ADA would need price-friendly US stats, FOMC member chatter, and IOHK updates to support a bullish session.

In the event of an extended rally, the Second Major Resistance Level (R2) at $0.329 and $0.335 would likely come into play. The Third Major Resistance Level (R3) sits at $0.342.

A fall through the pivot would bring the First Major Support Level (S1) at $0.311 into play. However, barring a risk-off-fueled sell-off, ADA should avoid sub-$0.305 and the Second Major Support Level (S2) at $0.303.

A pickup in US inflationary pressure could reverse bets of a Fed pivot that would bring S2 ($0.303) into view.

The Third Major Support Level (S3) sits at $0.290.

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

ADA sat below the 100-day EMA, currently at $0.323. The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA eased back from the 200-day EMA, delivering mixed signals.

An ADA breakout from the 100-day EMA ($0.323) and R1 ($0.324) would support a run at R2 ($0.329). However, a slide through the 50-day EMA ($0.314) would support a fall through S1 ($0.311) to bring S2 ($0.304) into view.