ADA Price Prediction: Bulls Need a Return to $0.360 to Avoid More Red

Key Insights:

• On Monday, ADA saw red for a second consecutive day, falling by 0.28% to end the day at $0.350.
• A lack of network updates left ADA on the back foot, with investors taking a breather after the latest surge to $0.370.
• However, the technical indicators remain bullish, signaling a return to $0.400.

ADA slipped by 0.28% on Monday. Following a 0.57% fall on Sunday, ADA ended the day at $0.350. Notably, ADA wrapped up the day at $0.35 for the third consecutive session.

A bullish start to the day saw ADA rise to an early high of $0.368 before hitting reverse. ADA broke through the First Major Resistance Level (R1) at $0.357 and the Second Major Resistance Level (R2) at $0.363. However, the reversal saw ADA slide to a mid-afternoon low of $0.338. ADA fell through the First Major Support Level (S1) at $0.342 before ending the day at $0.350.

A Lack of Network Updates Leaves ADA in the Red

It was a quiet Monday session, with no updates from Input Output HK (IOHK) to provide direction. The lack of updates left ADA on the back foot as investors await the launches of the two algorithmic stablecoins on the Cardano network.

There was also a modest pullback on the Cardano total value locked (TVL) to peg ADA back this morning. According to DeFi Llama, the Cardano total value locked stood at $71.77 million this morning. The TVL was down 0.68% over 24 hours while up 41.3% year-to-date. A continued uptrend in TVL would support the move toward $0.400.

However, ADA will need a catalyst to support a breakout from last week’s high of $0.370 and a return to $0.400.

Today, network updates and TVL numbers need monitoring. However, the broader crypto market needs to support a bullish session. A lack of network updates would leave US economic indicators and corporate earnings to influence through the afternoon session.

ADA Price Action

This morning, ADA was down 0.29% to $0.349. A mixed start to the day saw ADA rise to an early high of $0.353 before falling to a low of $0.343.

Technical Indicators

ADA needs to move through the $0.352 pivot to target the First Major Resistance Level (R1) at $0.366 and the Monday high of $0.368. A return to $0.360 would signal a breakout session. However, Cardano updates and the broader crypto market would need to support a bullish session.

In the event of another breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.382. The Third Major Resistance Level (R3) sits at $0.412.

Failure to move through the pivot ($0.352) would leave the First Major Support Level (S1) at $0.336 in play. Barring a broad-based crypto sell-off, ADA should avoid sub-$0.330 and the Second Major Support Level (S2) at $0.322. The Third Major Support Level (S3) sits at $0.292.

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

ADA sat above the 50-day EMA, currently at $0.332. 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 ($0.336) and the 50-day EMA ($0.332) would support a breakout from R1 ($0.366) to target R2 ($0.382). However, a fall through S1 ($0.336) and the 50-day EMA ($0.332) would give the bears a run at S2 ($0.322) and the 100-day EMA ($0.312). A fall through the 50-day EMA would signal a shift in investor sentiment.