ADA Price Prediction: Bulls Eye $0.370 to Bring $0.400 into View

Key Insights:

• ADA rallied by 6.73% on Monday to end the day at $0.317.
• Investor sentiment toward ADA adoption and the Cardano network continued to fuel buyer appetite.
• The technical indicators are bullish, signaling a return to $0.400.

ADA rallied by 6.73% on Monday. Following a 7.22% breakout on Sunday, ADA ended the day at $0.317. Notably, ADA wrapped up the day at $0.300 for the first time since December 15.

A bullish start to the day saw ADA surge from an early low of $0.296 to an early morning high of $0.346. ADA broke through the Major Resistance Levels before pulling back through the session to end the day at $0.317. The reversal saw ADA fall through the Third Major Resistance Level (R3) at $0.340.

Network News and Statistics Drives ADA Northbound

Bullish sentiment toward the Cardano network continued into Monday. In recent sessions, we attributed the continued upswing from the 2022 low of $0.239 to an uptrend in total value locked and NFT trading volumes.

On Monday, Cardano’s DeFi total value locked rose from $56.77 million to $62.02 million, a 9.25% gain for the day. However, intraday, the TVL move through $65 million before easing back. According to DeFi Llama, the TVL stood at $64.54 million this morning, up 4.07%. Year-to-date, the TVL is up 27.1%.

Alongside the pickup in TVL, ADA adoption and whale accumulation have also driven the price northwards. News of founder Charles Hoskinson’s Healthcare Clinic accepting ADA for payments followed ADA’s entry into the top ten most used cryptos.

Last week, a CoinGate Report drew attention to the increased use of ADA through 2022. According to the report, ADA entered the top ten most used cryptos for the first time.

The imminent launches of two algorithmic stablecoins on the Cardano network are also bullish and have likely drawn the interest of whales.

Today, network updates will remain the key driver, though broader crypto market sentiment needs to remain bullish to support ADA at current levels. The NASDAQ Index and Fed Chair Powell will influence during the afternoon session.

ADA Price Action

This morning, ADA was down 0.63% to $0.315. A mixed start to the day saw ADA rise to an early high of $0.322 before falling to a low of $0.307.

Technical Indicators

ADA must move through the $0.320 pivot to target the First Major Resistance Level (R1) at $0.343 and the Monday high of $0.346. A return to $0.320 would signal an extended breakout session. However, the broader crypto market and Cardano news need to support a bullish session.

In the event of an extended rally, the Second Major Resistance Level (R2) at $0.370 would likely come into play. The Third Major Resistance Level sits at $0.420.

Failure to move through the pivot ($0.320) would leave the First Major Support Level (S1) at $0.293 in play. Barring a broad-based crypto sell-off, ADA should avoid sub-$0.290 and the Second Major Support Level (S2) at $0.270. The Third Major Support Level (S3) sits at $0.220.

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

ADA sat above the 50-day EMA, currently at $0.283. After Monday’s bullish cross, the 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

A hold above S1 ($0.293) and the 50-day EMA ($0.283) would support a breakout from R1 ($0.343) to target R2 ($0.0.370). However, a fall through S1 ($0.293) and the 50-day EMA ($0.283) would give the bears a run at the 200-day ($0.280) and 100-day ($0.274) EMAs. A fall through the 50-day EMA ($0.283) would signal a shift in investor sentiment.