ADA Price Prediction: Bulls Target $0.290 to Bring $0.300 into View

Key Insights:

• ADA rallied by 3.35% on Friday to end the day at $0.278.
• US economic indicators and Cardano network updates supported a first visit to $0.280 since December 16.
• The technical indicators are bullish, signaling a return to $0.300.

ADA rallied by 3.35% on Friday. Following a 0.37% gain on Thursday, ADA ended the day at $0.278. Notably, ADA revisited $0.280 for the second time since December 16.

After a choppy morning session, ADA fell to an early afternoon low of $0.267. Steering clear of the First Major Support Level (S1) at $0.264, ADA rallied to a late high of $0.280. ADA broke through the First Major Resistance Level (R1) at $0.272 and the Second Major Resistance Level (R2) at $0.276 to end the day at $0.278.

Cardano Adoption and Network News Drives ADA Toward $0.300

On Friday, news of founder Charles Hoskinson’s Healthcare Clinic accepting ADA for payments delivered a bullish session.

Network updates, adoption, and the imminent launch of two algorithmic stablecoins on the Cardano network have supported the latest move toward $0.300.

An upward trend in ADA total value locked (TVL) and Cardano-NFT trading volumes have also been behind the surge from a December 30 low of $0.239.

On Friday, NFT trading volume stood at 1.786 million ADA, down from a January 2 30-day high of 1.870 million ADA. On October 22, trading volumes hit an all-time high of 4.272 million before tumbling to below 0.700 million. However, trading volumes have risen since late December.

This morning, the total value locked stood at $56.61 million, up from $50.79 million on December 31, according to DeFi Llama. The upswing in TVL at the start of the year is also a bullish indicator.

While network news has been behind the rebound, US economic indicators and the NASDAQ Index supported the breakout session. Easing bets of a hawkish February Fed rate hike contributed.

Today, Input Output HK (IOHK) updates and Charles Hoskinson commentary would need considering along with crypto news updates.

ADA Price Action

This morning, ADA was flat at $0.278. A mixed morning saw ADA rise to an early high of $0.281 before falling to a low of $0.276.

Technical Indicators

ADA must avoid a fall through the $0.275 pivot to retarget the First Major Resistance Level (R1) at $0.283. A return to $0.280 would signal an extended breakout session. However, the broader crypto market and Cardano news need to support a bullish session.

In the event of an extended rally, the Second Major Resistance Level (R2) at $0.288 and $0.290 would likely come into play. The Third Major Resistance Level sits at $0.301.

A fall through the pivot would bring the First Major Support Level (S1) at $0.270 into play. Barring a broad-based crypto sell-off, ADA should avoid sub-$0.270 and the Second Major Support Level (S2) at $0.262. The Third Major Support Level (S3) sits at $0.249.

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

ADA sat above the 200-day EMA, currently at $0.276. The 50-day EMA converged on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bearish signals.

A bullish cross of the 50-day EMA through the 100-day EMA would support a breakout from R1 ($0.283) to bring R2 ($0.288) and $0.290 into play. However, a fall through S1 ($0.270) would give the bears a run at the 100-day ($0.263) and 50-day ($0.262) EMAs. A fall through the 50-day EMA ($0.262) would send a bearish signal.