ADA Price Prediction: Bulls Eye $0.375 on US Debt Ceiling News
- ADA joined the broader market in positive territory on Friday, rising by 1.40% to end the day at $0.363.
- US debt ceiling news provided support, with IOHK updates showing a modest increase in projects building on the network.
- The technical indicators remained bearish, bringing sub-$0.350 into view.
ADA rose by 1.40% on Friday. Partially reversing a 1.65% loss from Thursday, ADA ended the day at $0.363. Despite the bullish session, ADA fell short of the $0.370 handle for the second consecutive session.
A bearish start to the day saw ADA fall to an early morning low of $0.354 before making a move. Finding support at the First Major Support Level (S1) at $0.354, ADA rose to an early evening high of $0.367. ADA briefly broke through the First Major Resistance Level (R1) at $0.364 before easing back to end the day at $0.363.
US Debt News and IOHK Updates Delivered Support
Input Output HK (IOHK) released the Weekly Development Report on Friday. An upswing in projects was modest for another week, however.
According to the May 26 report,
- 127 projects launched on the Cardano network, unchanged from May 19.
- Projects building on the Cardano network totaled 1,244, rising by two from the previous report.
- Plutus V2 scripts totaled 2,543. As of May 19, Plutus V2 scripts stood at 2,501.
Before the Vasil hard fork, the number of projects launched on Cardano had stood at 98, with 1,100 projects building on the Cardano network.
Other stats included 67.2 million transactions (Previous Report: 66.7m), 8.33 million native tokens (PR: 8.28 million), and 74,255 token policies (PR: 73,880).
While the IOHK weekly updates drew interest, reports of progress toward raising the US debt ceiling supported the bullish session. The optimism limited the rising probability of a June Fed interest rate hike following a pickup in inflationary pressure.
The Day Ahead
Investors should monitor Input Output HK (IOHK) network updates. However, a lack of updates should leave ADA in the hands of the broader crypto market and US debt ceiling-related news. Progress toward raising the debt ceiling should provide further gains.
However, SEC v Ripple-related news and Binance and Coinbase (COIN) chatter will also move the dial.
ADA Price Action
This morning, ADA was flat at $0.363. A range-bound start to the weekend saw ADA fall to an early low of $0.362 before rising to a high of $0.364.
ADA Technical Indicators
Resistance & Support Levels
|R1 – $||0.3687||S1 – $||0.3557|
|R2 – $||0.3743||S2 – $||0.3483|
|R3 – $||0.3873||S3 – $||0.3353|
ADA has to avoid the $0.361 pivot to target the First Major Resistance Level (R1) at $0.369. A move through the Friday high of $0.367 would support a bullish session. However, IOHK updates and US debt ceiling-related news would need to deliver support.
In the case of a breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.374. The Third Major Resistance Level (R3) sits at $0.387.
A fall through the pivot would bring the First Major Support Level (S1) at $0.356 into play. However, barring a risk-off fueled sell-off, ADA should avoid sub-$0.350 and the Second Major Support Level (S2) at $0.348. The Third Major Support Level (S3) sits at $0.335.
Today, the EMAs and the 4-hourly candlestick chart (below) sent bearish signals.
ADA sat below the 50-day EMA, currently at $0.364. The 50-day EMA eased back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA, delivering bearish signals.
A move through the 50-day EMA ($0.364) would support a breakout from the 100-day EMA ($0.368) and R1 ($0.369) to give the bulls a run at R2 ($0.374). However, failure to move through the 50-day EMA ($0.364) would leave S1 ($0.356) in view. A move through the 50-day EMA would send a bullish signal.