ADA Price Prediction: Bulls Eye $0.350 on Stablecoin Launch Plans

Key Insights:

• On Wednesday, ADA tumbled by 5.78% to end the day at $0.326.
• A lack of network updates left ADA in the hands of US economic indicators and Fed Chatter, which sent riskier assets into the red.
• However, the technical indicators remain bullish, signaling a return to $0.400.

ADA slid by 5.78% on Wednesday. Following a 1.14% loss on Tuesday, ADA ended the day at $0.326. Notably, ADA wrapped up the day at sub-$0.33 for the first time in seven sessions.

After a mixed morning, ADA rallied to an early afternoon high of $0.355. Coming up against the First Major Resistance Level (R1) at $0.355, ADA slid to a late afternoon low of $0.325. ADA fell through the First Major Support Level (S1) at $0.340 and the Second Major Support Level (S2) at $0.334 to end the day at $0.326.

US Economic Indicators and Fed Chatter Overshadow Bullish ADA Outlook

It was a quiet Wednesday session, with no Input Output HK (IOHK) updates to provide direction. The lack of updates left ADA in the hands of the broader crypto market.

US economic indicators and FOMC member commentary sent ADA and the broader crypto market into the red. A slide in US retail sales and industrial production raised the prospects of a US hard landing. Hawkish FOMC member chatter added to the bearish mood, with James Bullard and Loretta Mester supporting interests at above 5% to bring inflation to target.

The NASDAQ Index fell by 1.24%, with the crypto market cap sliding by 2.77% on Wednesday.

Today, Cardano network updates and the broader crypto market will provide direction. However, in the afternoon session, US economic indicators, FOMC member chatter, and corporate earnings will influence.

Another set of weak economic indicators and hawkish FOMC member chatter would test buyer appetite, with Netflix (NFLX) and other big names also in the spotlight.

The announcement of an official Djed launch date would deliver price support, however. Last week, COTI shared the latest on the planned January launch of Djed. While several issues reportedly need addressing, COTI stated that the required fixes would not affect the planned launch of Djed in January.

ADA Price Action

This morning, ADA was up 1.53% to $0.331. A bullish start to the day saw ADA rise from an early low of $0.326 to a high of $0.333.

Technical Indicators

ADA needs to move through the $0.335 pivot to test the First Major Resistance Level (R1) at $0.346 and resistance at $0.350. A return to $0.340 would signal a breakout session. However, Cardano updates and the broader crypto market would need to support a bullish session.

In the event of another breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.365. The Third Major Resistance Level (R3) sits at $0.395.

Failure to move through the pivot ($0.335) would leave the First Major Support Level (S1) at $0.316 in play. Barring another broad-based crypto sell-off, ADA should avoid sub-$0.310 and the Second Major Support Level (S2) at $0.305. The Third Major Support Level (S3) sits at $0.275.

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

ADA sat above the 100-day EMA, currently at $0.318. The 50-day EMA flattened on the 100-day EMA, while the 100-day EMA widened from the 200-day EMA, delivering mixed signals.

A move through the 50-day EMA ($0.335) would support a breakout from R1 ($0.346) to target R2 ($0.365). However, a fall through the 100-day EMA ($0.318) and S1 ($0.316) would bring S2 ($0.305) and sub-$0.300 into view. A further pullback from the 50-day EMA would signal a continued shift in investor sentiment.