ADA Price Prediction: Bulls Eye $0.410 on IOHK Weekly Update

Key Insights:

• ADA enjoyed a bullish Friday session, gaining 1.80% to end the session at $0.395.
• US economic indicators eased recessionary fears while leaving Fed rate hike bets subdued, supporting a bullish session.
• However, the technical indicators remain bearish, bringing sub-$0.380 into view.

ADA rose by 1.80% on Friday. Reversing a 1.52% loss from Thursday, ADA ended the day at $0.395. Significantly, ADA fell short of the $0.400 handle for the fifth consecutive session.

After a choppy morning, ADA fell to a midday low of $0.383. Finding support at the First Major Support Level (S1) at $0.383, ADA rose to a late afternoon high of $0.397. ADA broke through the First Major Resistance Level (R1) at $0.395 to end the day at $0.395.

US Jobs Report Delivered a Choppy Afternoon Session

Input Output HK (IOHK) released the Weekly Development Report on Friday. The report revealed a rise in the number of projects building on Cardano.

According to the May 5 report,

• 126 projects launched on the Cardano network, unchanged from April 28.
• Projects building on the Cardano network totaled 1,240, rising by ten from the previous report.
• Plutus scripts totaled 7,872, of which 2,440 were Plutus V2 scripts. As of April 28, Plutus scripts stood at 7,828.

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 65.8 million transactions (Previous Report: 65.4m), 8.21 million native tokens (PR: 8.18 million), and 72,348 token policies (PR: 72,037).

The latest project numbers provided support as investors responded to US economic indicators and the Apple Inc. (AAPL) earnings results that drove demand for riskier assets.

The Day Ahead

Investors should monitor Input Output HK (IOHK) network updates. A lack of updates should leave ADA in the hands of the broader crypto market.

SEC v Ripple case-related updates and Binance and Coinbase (COIN)-related news will move the dial. However, investors should track US lawmakers and regulatory activity.

Reports of the DoJ investigating Binance for breaching Russian sanctions will likely test buyer appetite.

ADA Price Action

This morning, ADA was down 1.01% to $0.391. A mixed start to the day saw ADA rise to an early high of $0.397 before falling to a low of $0.389.

ADA Technical Indicators

Resistance & Support Levels

ADA has to move through the $0.392 pivot to target the First Major Resistance Level (R1) at $0.400. A move through the morning high of $0.397 would support a bullish session. However, Cardano network updates and the broader crypto market would need to provide support.

In case 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 $0.420.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.386 in play. However, barring an extended broad-based crypto sell-off, ADA should avoid sub-$0.380 and the Second Major Support Level (S2) at $0.378. The Third Major Support Level (S3) sits at $0.364.

Today, the EMAs and the 4-hourly candlestick chart (below) sent bearish signals.

ADA sat above the 50-day EMA, currently at $0.393. The 50-day EMA fell back from the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bearish signals.

A bullish cross of the 50-day EMA ($0.393) through the 200-day EMA ($0.395) would support a breakout from R1 ($0.400) to give the bulls a run at R2 (0.406) and $0.410. However, failure to move through the 50-day EMA ($0.393) would leave S1 ($0.386) in view. A move through the 50-day EMA would send a bullish signal.