ADA Price Prediction: Bulls to Eye $0.325 on US Stats and IOHK Updates

Key Insights:

• On Thursday, ADA fell by 1.25%, marking a third loss from five sessions.
• US economic indicators and profit-taking left ADA and the broader market in the red.
• The technical indicators remained bearish, with ADA sitting below the 50-day EMA to bring sub-$0.300 into play.

On Thursday, ADA fell by 1.25%. Partially reversing a 3.24% gain from Wednesday, ADA ended the day at $0.315.

A mixed start to the day saw ADA rise to an early morning high of $0.320. Coming up short of the First Major Resistance Level (R1) at $0.324, ADA fell to a mid-afternoon low of $0.313. However, steering clear of the First Major Support Level (S1) at $0.311, ADA revisited 0.317 before ending the day at $0.315.

Investor Sentiment and US Economic Indicators Leave ADA in the Red

On Thursday, ADA succumbed to profit-taking through the morning session. Fed Chair Powell’s less hawkish speech had supported a return to $0.321 before the morning pullback. While the Fed Chair talked of a slower pace of rate hikes, US economic indicators will need to support the Fed’s talk of a pivot.

US inflation numbers for October were less can convincing, with the Core PCE Price Index up 5.0% year-over-year versus 5.2% in September. A contraction in the US manufacturing sector added to the bearish mood, with the ISM Manufacturing PMI falling from 50.2 to 49.0, the first contraction since May 2020.

There were no network updates from Input Output HK (IOHK) to distract investors ahead of today’s weekly development update.

However, with the US Jobs Report in focus, project numbers on the Cardano network will need to rise substantially to limit the influences of the US economic calendar and the NASDAQ Composite Index.

ADA Price Action

This morning, ADA was down 0.32% to $0.314. A bearish morning saw ADA fall from an early high of $0.316 to a low of $0.311.

ADA fell through the First Major Support Level (S1) at $0.312 before finding support.

Technical Indicators

ADA needs to move through the $0.316 pivot to target the First Major Resistance Level (R1) at $0.319 and the Thursday high of $0.320. A return to $0.320 would signal a breakout session. However, ADA would need price-friendly US stats, FOMC member chatter, and IOHK updates to support a bullish session.

In the event of an extended rally, the Second Major Resistance Level (R2) at $0.323 and $0.325 would likely come into play. The Third Major Resistance Level (R3) sits at $0.330.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.312 in play. However, barring a risk-off-fueled sell-off, ADA should avoid sub-$0.305. The Second Major Support Level (S2) at $0.309 should limit the downside. The Third Major Support Level (S3) sits at $0.302.

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

ADA sat below the 50-day EMA, currently at $0.315. The 50-day EMA slipped back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.

A breakout from the 50-day EMA ($0.315) would give the bulls a run at R1 ($0.319) and the 100-day EMA ($0.322). However, failure to move through the 50-day EMA ($0.315) would support a fall through S1 ($0.312) to bring S2 ($0.309) into view.