ADA Price Prediction: Bulls Eye a Return to $0.465 as Buyers Return

Key Insights:

• On Monday, cardano (ADA) rose by 0.22% to partially reverse a two-day losing streak.
• Having avoided a similar fate to ethereum (ETH) post Merge, bearish crypto market sentiment had weighed ahead of Monday’s modest gain.
• The technical indicators are bearish. With ADA sitting below the 100-day EMA, sub-$0.40 remains in play.

On Monday, ADA rose by 0.22%. Partially reversing a 1.11% decline from Sunday, ADA ended the day at $0.447.

A bearish start saw ADA slide to a mid-morning low of $0.437. Steering clear of the First Major Support Level (S1) at $0.436, ADA rallied to a late morning high of $0.451. However, falling short of the First Major Resistance Level (R1) at $0.460, ADA slipped back to end the day at sub-$0.450.

While a bullish crypto market session delivered support, investors continued to lock in gains post the Cardano mainnet hard fork to limit Monday’s gains. ADA was up 5.2% from an August low of $0.424 to an end Sunday at $0.446. By contrast, bitcoin (BTC) was down 3.9% over the same timeframe.

Positive Updates on the Cardano Ecosystem Remain ADA Positive

Following the September 22 Vasil hard fork, updates and comments regarding the Cardano ecosystem have been positive. Importantly, network users have reportedly tested Cardano dApps and confirmed that they are much faster.

Network performance will remain the focal point as more projects reportedly  plan to migrate to the Cardano ecosystem. However, broader market sentiment will need to continue improving for holders to reap the benefits of the successful hard fork.

Price Action

This morning, ADA was up 2.46% to $0.448. ADA broke through the First Major Resistance Level (R1) at $0.453 and the Second Major Resistance Level (R2) at $0.459 to strike a high of $0.463 before falling back to sub-$0.450.

Technical Indicators

ADA has to avoid R1 and the $0.445 pivot to retarget R2 ($0.459) and support a breakout from the morning high $0.463. While network updates will influence, bullish crypto sentiment would support a sustained rally.

In the case of an extended crypto rally, ADA could test resistance at $0.465 and target $0.470. The Third Major Resistance Level (R3) sits at $0.473.

A fall through R1 and the pivot would bring the First Major Support Level (S1) at $0.439 into play. Barring an extended sell-off, ADA should avoid sub-$0.435 and the Second Major Support Level (S2) at $0.431. The Third Major Support Level (S3) sits at $0.417.

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

ADA sat above the 50-day, currently at $0.456. The 50-day EMA narrowed to the 100-day EMA, with the 100-day EMA flattening on the 200-day EMAs, delivering mixed signals.

A move through R2 ($0.459) and the 100-day EMA ($0.462) would give the bulls a run at the 200-day EMA ($0.471) and R3 ($0.473). However, a fall through the 50-day EMA ($0.456) would leave ADA under pressure.