ADA Price Prediction: Bulls Target Shifts to $0.400 on Network Sentiment

Key Insights:

• On Saturday, ADA extended its winning streak to seven sessions, rising by 2.02% to end the day at $0.353.
• Input Output HK (IOHK) updates and easing FTX contagion continued providing support after the US economic indicators and corporate earnings from Friday.
• The technical indicators are bullish, signaling a return to $0.400.

ADA rose by 2.02% on Saturday. Following a 4.85% rally on Friday, ADA ended the day at $0.353. Notably, ADA revisited $0.370 for the first time since November 11 and extended its winning streak to seven sessions.

A bullish start to the day saw ADA rally to a mid-morning high of $0.370 before hitting reverse. ADA broke through the First Major Resistance Level (R1) at $0.357 and the Second Major Resistance Level (R2) at $0.367.

The reversal saw ADA slide to a late morning low of $0.333. However, steering clear of the First Major Support Level (S1) at $0.330, ADA retested R1 ($0.357) before easing back.

IOHK Updates and Easing FTX Contagion Delivered Support

Network updates and the 2023 roadmap continued supporting an ADA move toward $0.400. On Friday, Input Output HK (IOHK) released its weekly development update, showing a marked increase in Plutus scripts and a jump in transactions.

The update supported the increase in whale activity, with the number of wallets holding more than one million ADA rising this year.

Other tailwinds include the imminent launches of two algorithmic stablecoins and an anticipated influx of new projects onto the Cardano network. Total Value Locked numbers have also been bullish.

According to DeFi Llama, the Cardano Total Value Locked (TVL) stood at $71.74 million this morning, down 1.75% over 24 hours while up 41.3% year-to-date. A continued uptrend in TVL would deliver further price gains and support a return to $0.400.

Today, the broader crypto market will provide direction, with another choppy session likely as investors consider locking in profits. However, network updates and usage support further gains, with easing FTX contagion key to the shift in crypto market sentiment.

ADA Price Action

This morning, ADA was down 1.42% to $0.348. A bearish start to the day saw ADA fall from an early high of $0.354 to a low of $0.342.

Technical Indicators

ADA needs to move through the $0.352 pivot to target the First Major Resistance Level (R1) at $0.371. A move through the Saturday high of $0.370 and R1 would signal another 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 $0.389. The Third Major Resistance Level sits at $0.426.

Failure to move through the pivot ($0.353) would leave the First Major Support Level (S1) at $0.334 in play. Barring a broad-based crypto sell-off, ADA should avoid sub-$0.325 and the Second Major Support Level (S2) at $0.315. The Third Major Support Level (S3) sits at $0.278.

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

ADA sat above the 50-day EMA, currently at $0.320. 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 ($0.334) and the 50-day EMA ($0.320) would support a breakout from R1 ($0.371) to target R2 ($0.389). However, a fall through S1 ($0.334) would give the bears a run at the 50-day EMA ($0.320) and S2 ($0.315). A fall through the 50-day EMA would signal a shift in investor sentiment.