ADA Price Prediction: Bulls Eye $0.410 on Hard Fork and EMURGO News
Key Insights:
- ADA rallied by 4.45% on Tuesday to end the day at $0.399.
- Fed Chair Powell drove demand for riskier assets, with investor sentiment toward the Cardano network also bullish.
- The technical indicators remain bullish, supporting a run at $0.450.
ADA rallied by 4.45% on Tuesday. Reversing a 2.55% loss from Monday, ADA ended the day at $0.399.
A mixed start to the day saw ADA fall to an early low of $0.381. Steering clear of the First Major Support Level (S1) at $0.374, ADA rallied to a late high of $0.400. ADA broke through the First Major Resistance Level (R1) at $0.397 to end the day at $0.399.
Fed Chair Powell Cools Fed Fear to Deliver Price Support
There were no Input Output HK (IOHK) updates to distract investors on Tuesday. The lack of updates left ADA in the hands of Fed Chair Powell and the NASDAQ Composite Index.
A less hawkish-than-expected Fed Chair Powell drove demand for riskier assets, with ADA showing sensitivity to Powell’s speech.
The bullish market reaction supported a sharp ADA price recovery, which had been under pressure since Friday’s US Jobs Report.
While Fed Chair Powell delivered support to riskier assets, investor sentiment toward the Cardano Network remains positive. Following the launch of COTI’s DJED stablecoin, investors await the launch of EMURGO’s USDA algorithmic stablecoin, which will drive ADA utilization.
An upward trend in network projects and the upcoming Cardano hard fork also provide a bullish outlook. Total Value Locked (TVL) numbers reflect the bullish sentiment.
According to DeFi Llama, the Cardano TVL is up 5.43% over 24 hours and by 122% year-to-date. ADA is up 62% year-to-date, with the market cap up by 58.3%.
Today, EMURGO and Cardano hard fork news would draw interest. However, a lack of updates from IOHK would leave ADA in the hands of the NASDAQ Index and the broader crypto market. There are no US economic indicators to consider, which would leave FOMC member chatter to influence market risk sentiment. FOMC members Williams, Barr, and Waller speak today.
ADA Price Action
This morning, ADA was flat at $0.399. A choppy start to the day saw ADA rise to an early high of $0.403 before falling to a low of $0.397.
Technical Indicators
ADA needs to avoid a fall through the $0.393 pivot to target the First Major Resistance Level (R1) at $0.406. A move through the morning high of $0.403 would support a bullish session. However, Cardano updates and the broader crypto market would need to provide support.
In the event of a breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.412. The Third Major Resistance Level (R3) sits at $0.431.
A fall through the pivot ($0.388) would bring the First Major Support Level (S1) at $0.387 into play. Barring a broad-based crypto sell-off, ADA should avoid sub-$0.380 and the Second Major Support Level (S2) at $0.374. The Third Major Support Level (S3) sits at $0.355.
This morning, the EMAs and the 4-hourly candlestick chart (below) sent bullish signals.
ADA sat above the 50-day EMA, currently at $0.392. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.
A hold above the 50-day EMA ($0.392) would support a breakout from R1 ($0.406) to target R2 ($0.412). However, a fall through the 50-day EMA ($0.392) would give the bears a run at S1 ($0.387) and the 100-day EMA ($0.382). A fall through the 50-day EMA would send a bearish signal.
