ADA Price Prediction: Bulls Eye a Return to $0.270 to Target $0.280

Key Insights:

• On Wednesday, ADA resumed its upward trend, rallying 5.93% to end the day at $0.268.
• Total value locked and NFT stats contributed to the upside alongside crypto-friendly US economic indicators and a bullish NASDAQ Index session.
• The technical indicators turned bullish, signaling a possible return to $0.300.

ADA rallied by 5.93% on Wednesday. Reversing a 0.39% loss from Tuesday, ADA ended the day at $0.268. Notably, ADA revisited $0.270 for the first time since December 18.

Tracking the broader market, ADA slipped to an early morning low of $0.252 before finding support. Steering clear of the First Major Support Level (S1) at $0.250, ADA rallied to a late afternoon high of $0.270. ADA broke through the Major Resistance Levels to end the day at $0.268.

Network Statistics and the US Economic Calendar Deliver a Bullish Session

Sentiment towards ADA adoption shifted markedly at the turn of the year. Cardano-NFT trading volumes and Total value locked numbers turned more bullish, with the anticipation of the planned launches of two algorithmic stablecoins also driving demand.

On Wednesday, Cardano-NFT trading volumes remained elevated after hitting a 30-day high on Monday. Trading volumes stood at 1,769,904 ADA versus 1,870,234 ADA on Monday, according to OpenCNFT.

Trading volumes have been on an uptrend after a sharp fall from an October all-time high of $4,271,974 ADA.

Total value locked (TVL) statistics have supported the price rebound from the December 30 calendar year low of $0.239.

According to DeFi Llama, the TVL stood at $53.84 million today, up from $48.95 million on January 1. A continued rise in TVL should drive further demand.

While the stats are price positive, sentiment toward the launches of two algorithmic stablecoins is shifting investor sentiment toward demand. Successful launches would support the expectation of an influx of more projects onto the Cardano network.

A CoinGate Report on Wednesday drew attention to the increased use of ADA through 2022. According to the report, ADA entered the top ten most used crypto list for the first time alongside BNB.

US economic indicators and the NASDAQ Index provided afternoon support. However, hawkish FOMC meeting minutes led to a late pullback from the session high.

Network updates and the US economic calendar will remain the areas of interest today. A lack of network updates would leave US ADP employment change and jobless claims figures to provide direction.

ADA Price Action

This morning, ADA was down 0.75% to $0.266. A bearish start to the day saw ADA fall from an early high of $0.269 to a low of $0.265.

Technical Indicators

ADA must avoid the $0.263 pivot to target the First Major Resistance Level (R1) at $0.275. A return to $0.270 would signal a bullish session. However, US economic indicators and network updates would have to be price-friendly to support a breakout session.

In the event of an extended rally, the Second Major Resistance Level (R2) at $0.281 would likely come into play. The Third Major Resistance Level (R3) sits at $0.299.

A fall through the pivot would bring the First Major Support Level (S1) at $0.257 into play. Barring an sell-off, ADA should avoid sub-$0.250 and the Second Major Support Level (S2) at $0.245. The Third Major Support Level (S3) sits at $0.227.

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

ADA sat above the 100-day EMA, currently at $0.260. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

A move through R1 ($0.275) and the 200-day EMA ($0.276) would support a run at R2 ($0.281). However, a fall through the 100-day EMA ($0.260) would give the bears a run at S1 ($0.257) and the 50-day EMA ($0.256). A slide through the 50-day EMA would send a bearish signal.