ADA Price Prediction: Bulls Look to Test Resistance at $0.70

Key Insights:

• ADA eyes a fourth consecutive daily gain, with the bulls on track to reversing three weeks of losses.
• A jump in total value locked and a pickup in long positions versus shorts delivered support.
• Key technical indicators bullish. ADA sits above the 200-day EMA.

On Monday, ADA surged by 18.29%. Following a 3.77% gain on Sunday, ADA ended the day at $0.5697. Significantly, Monday’s breakout reversed a 13.8% slump from the previous week.

Network news updates delivered support at the start of the week, with a broad-based crypto rally adding to the upside on the day.

The Monday breakout came despite the fallout from the collapse of TerraUST (UST) and Terra LUNA continuing to test support for the crypto majors.

Bucking the broader crypto market trend this morning, ADA was back on the move with a return to $0.68 levels before easing back.

Cardano Total Value Locked Jumps 32% to $157 Million

There are several factors driving demand this week.

Over the last 24-hours, Cardano’s total value locked surged by 32% to $157 million, according to Defi Llama, compared to a modest 4.87% rise for all protocols.

With ADA up 27.1% over 24-hours, the divergence in TVL from price move suggests further price support ahead.

Total liquidations and shorts versus longs reflected the upbeat sentiment and bullish price action.

According to Coinglass,

• Total crypto liquidations over the last 24-hours stood at $282.14 million, down from $350 million early in the session.
• For ADA, total liquidations over the past 24-hours stood at $8.65 million.
• Over the last hour, however, total liquidations were just $125k, suggesting improving market conditions.

ADA Price Action

At the time of writing, ADA was up 16.22% to $0.6621.

A bullish morning saw ADA surge to an early morning high of $0.6878 before easing back.

ADA broke through the First Major Resistance Level at $0.6058 and the Second Major Resistance Level at $0.6421.

Technical Indicators

ADA will need to avoid the Major Resistance Levels and the $0.5414 pivot to test resistance at $0.70 and the Third Major Resistance Level at $0.7427. ADA would need broader crypto market support to break out from the morning high of $0.6878.

In the event of an extended rally, ADA should test resistance at $0.75.

A fall through the Major Resistance Levels and the $0.5414 pivot would bring the First Major Support Level at $0.5052 into play.

Barring an extended sell-off throughout the day, ADA should avoid sub-$0.50 and the Second Major Support Level at $0.4407.

The EMAs and the 4-hourly candlestick chart (below) send a bullish signal. At the time of writing, ADA sits above the 200-day EMA, currently at $0.6187. This morning, the 50-day EMA narrowed to the 100-day EMA. The 100-day EMA closed in on the 200-day EMA; price positive.

A bullish cross of the 50-day EMA through the 100-day EMA would support a run at $0.70.