ADA Price Prediction: Bulls Target $0.350 to Bring $0.400 into View

Key Insights:

• ADA rallied by 7.22% on Sunday to end the day at $0.297.
• Network news and a broad-based crypto market rally supported a bullish end to the week.
• The technical indicators are bullish, signaling a return to $0.350.

ADA rallied by 7.22% on Sunday. Reversing a 0.36% loss from Saturday, ADA ended the week up by 18.80% to $0.297. Notably, ADA tested resistance at $0.300 for the first time since mid-December.

A bearish start to the day saw ADA fall to an early low of $0.274. Steering clear of the First Major Support Level (S1) at $0.272, ADA surged to a final-hour high of $0.299. ADA broke through the Major Resistance Levels to end the day at $0.297.

Network News, ADA Adoption, and the NASDAQ Deliver Support

There is a shift in investor sentiment toward the Cardano network and ADA in 2023. The pickup in demand comes despite a lack of weekly development updates from Input Output HK. In late 2022, project numbers disappointed, leading to a pullback to a December 30, 2022, calendar year low of $0.239.

However, a series of network updates and news of increased ADA adoption delivered a breakout start to 2023. Before today’s breakout morning, ADA was up 20.73% year-to-date to the Sunday close of $0.297.

News of founder Charles Hoskinson’s Healthcare Clinic accepting ADA for payments followed ADA’s entry into the top ten most used cryptos. Last week, a CoinGate report drew attention to the increased use of ADA through 2022. According to the report, ADA entered the top ten most used cryptos for the first time.

The imminent launches of two algorithmic stablecoins on the Cardano network are also bullish.

For investors, the missing piece of the jigsaw is the lack of an influx of new projects following the Vasil hard fork. However, Charles Hoskinson has been optimistic that the numbers will rise rapidly in Q1 2023.

Looking at the total value locked (TVL) numbers, these are also bullish. Over 24 hours, the TVL is up 19.45% this morning, according to DeFi Llama. Year-to-date, the TVL is up 33.51%.

NFT statistics have also drawn attention, supporting the bullish price action. On Sunday, Cardan-NFT trading volumes stood at 1,694.3 million ADA. While trading volumes are down from a 30-day high trading volume of 1,870.2 million ADA, trading volumes have been on an upward trend since mid-November.

Today, network updates will remain the key driver, though broader crypto market sentiment needs to remain bullish to support current price levels. The NASDAQ Index and FOMC member chatter will influence during the afternoon session.

ADA Price Action

This morning, ADA was up 10.77% to $0.329. A bullish start to the day saw ADA rally from an early low of $0.296 to a high of $0.346.

ADA broke through the Major Resistance Levels before falling back through the Third Major Resistance Level (R3) at $0.340.

Technical Indicators

ADA must avoid a fall through R2, R1, and the $0.290 pivot to retarget the Third Major Resistance Level (R3) at $0.340. A return to $0.340 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 bulls will target a breakout from $0.350 to bring $0.400 into view.

A fall through R2, R1, and the pivot would bring the First Major Support Level (S1) at $0.281 into play. Barring a broad-based crypto sell-off, ADA should avoid sub-$0.280 and the Second Major Support Level (S2) at $0.265. The Third Major Support Level (S3) sits at $0.240.

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

ADA sat above the 200-day EMA, currently at $0.277. The 50-day EMA closed in on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

A bullish cross of the 50-day EMA through the 200-day EMA would support a breakout from R3 ($0.340) to bring $0.400 into play. However, a fall through the Major Resistance Levels and S1 ($0.281) would give the bears a run at the 100-day ($0.268) and 50-day ($0.271) EMAs. A fall through the 50-day EMA ($0.271) would send a bearish signal.