ADA Price Prediction: Bulls Eye $0.410 on IOHK Network Updates

Bob Mason
Published: Jan 28, 2023, 02:38 GMT+00:00

It was a bullish Friday session, with ADA inching closer to $0.400 on the latest Cardano network project numbers and crypto-friendly US economic indicators.

ADA technical analysis - FX Empire.

Key Insights:

  • ADA rose by 2.63% on Friday, extending its winning streak to three sessions.
  • Network updates and US economic indicators supported a bullish Friday session.
  • The technical indicators are bullish, signaling a return to $0.400.

ADA rose by 2.63% on Friday. Following a 1.88% gain on Thursday, ADA ended the day at $0.390. Notably, ADA ended the day at $0.390 for the first time since November 7.

A bearish start to the day saw ADA slide to an early morning low of $0.368. ADA briefly fell through the First Major Support Level (S1) at $0.371 before rallying to a late high of $0.391. ADA broke through the First Major Resistance Level (R1) at $0.389 to end the session at $0.390.

Input Output HK and Stablecoin News Deliver ADA Price Support

On Friday, Input Output HK (IOHK) released the Weekly Development Report. According to the January 27 report,

  • 113 projects launched on the Cardano network, up by one from January 20.
  • Projects building on the Cardano network totaled 1,191, up by ten from the previous report.
  • Plutus scripts totaled 5,560, of which 611 were Plutus V2 scripts. As of January 20, Plutus scripts stood at 5,494.

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 59.8 million transactions (Previous Report: 59.4m), 7.63 million native tokens (PR: 7.59 million), and 68,989 token policies (PR: 68,641).

IOHK also shared the details of projects building on the Cardano network. The latest weekly development update and project lists showed developer activity levels on the Cardano network, driving ADA demand.

Another area of focus remained the planned launches of algorithmic stablecoins following the news of COTI launching the DJED stablecoin next week.

The algorithmic stablecoin protocol uses smart contracts to maintain a dollar peg, is backed by ADA, and uses SHEN as a reserve coin. To deliver stability, DJED uses a collateral ratio between 400% and 800% for DJED and SHEN. At the time of writing, the Reserve Ratio stood at 805%.

With COTI launching the DJED stablecoin next week, updates on the launch of EMURGO’s USDA stablecoin would provide further price support. The increased utilization of ADA supports a bullish outlook.

Today, Input Output HK (IOHK) updates need monitoring. Further reaction to the Weekly Development Update could support another bullish session. The increase in projects on the Cardano network should deliver price support.

However, investors also need to monitor FTX and Genesis updates and other crypto events that can move the dial.

ADA Price Action

This morning, ADA was up 0.77% to $0.393. A bullish start to the day saw ADA rise from an early low of $0.389 to a high of $0.398. The First Major Resistance Level (R1) at $0.398 capped the upside early on.

ADA finds early support.
ADAUSD 280123 Daily Chart

Technical Indicators

ADA needs to avoid a fall through the $0.383 pivot to retarget the First Major Resistance Level (R1) at $0.398. A return to $0.395 would signal a breakout session. However, Cardano updates and the broader crypto market would need to support a bullish session.

In the event of a breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.406 and resistance at $0.410. The Third Major Resistance Level (R3) sits at $0.429.

A fall through the pivot ($0.383) would bring the First Major Support Level (S1) at $0.375 into play. Barring a broad-based crypto sell-off, ADA should avoid sub-$0.370 and the Second Major Support Level (S2) at $0.360. The Third Major Support Level (S3) sits at $0.337.

ADA resistance levels in play above the pivot.
ADAUSD 280123 Hourly Chart

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

ADA sat above the 50-day EMA, currently at $0.368. 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 S1 ($0.375) and the 50-day EMA ($0.368) would support a breakout from R1 ($0.398) to target R2 ($0.406) and $0.410. However, a fall through S1 ($0.375) and the 50-day EMA ($0.368) would give the bears a run at S2 ($0.360). A fall through the 50-day EMA would send a bearish signal.

EMAs are bullish.
ADAUSD 280123 4-Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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