ADA Price Prediction: Bulls to Eye $0.400 on EMURGO Stablecoin Update

Published: Jan 31, 2023, 02:42 UTC•3min read

Following the Monday sell-off, ADA recovered from early losses this morning. Later today, stablecoin updates, US stats, and the NASDAQ will influence.

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Key Insights:

ADA tumbled by 6.28% on Monday to end the day at $0.373.
Input Output HK network updates failed to deliver support, with Fed fear sending the NASDAQ Index and the crypto market into the red.
The technical indicators remain bullish, supporting a return to $0.400.

ADA tumbled by 6.28% on Monday. Reversing a 4.19% rally from Sunday, ADA ended the day at $0.373. The bearish session led ADA to sub-$0.370 for the first time in three sessions.

Bearish throughout the Monday session, ADA slid from an opening price of $0.398 to a late low of $0.367. The sell-off saw ADA fall through the First Major Support Level (S1) at $0.384. However, finding support at the Second Major Support Level (S2) at $0.369, ADA partially recovered the losses to end the day at $0.373.

Fed Fear Overshadowed Input Output HK Updates

On Monday, Input Output HK (IOHK) shared the latest on the Lace platform. However, despite increased network activity and the upbeat Weekly Development Report, ADA joined the broader crypto market in the red.

Updates from COTI on the Djed algorithmic stablecoin also failed to provide support. On Monday, COTI shared the latest on the imminent stablecoin launch, saying,

“We are happy to share that Djed 1.1.1 will include delegation rewards for SHEN holders starting from day one! In this update, we explained Djed’s economics and delegation process.”

However, there were no updates from EMURGO on the planned launch of the USDA stablecoin. Today, EMURGO is hosting a Twitter space, which could provide details of the USDA launch.

While network updates will draw interest, US economic indicators and investor sentiment toward tomorrow’s Fed interest rate decision and Fed Chair Powell press conference will also influence. On Monday, Fed Fear sent the NASDAQ Index, ADA, and the broader crypto market into the deep red.

ADA Price Action

This morning, ADA was flat at $0.373. A choppy start to the day saw ADA slide from an opening price of $0.373 to a low of $0.368 before recovering.

ADAUSD 310123 Daily Chart

Technical Indicators

ADA needs to move through the $0.379 pivot to target the First Major Resistance Level (R1) at $0.392 and the Monday high of $0.398. A return to $0.390 would signal a breakout session. However, Cardano updates and the broader crypto market would need to support a bullish session.

In the event of a breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.410. The Third Major Resistance Level (R3) sits at $0.441.

Failure to move through the pivot ($0.379) would leave the First Major Support Level (S1) at $0.361 in play. Barring another broad-based crypto sell-off, ADA should avoid sub-$0.350 and the Second Major Support Level (S2) at $0.348. The Third Major Support Level (S3) sits at $0.317.

ADA support levels in play below the pivot.

ADAUSD 310123 Hourly Chart

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

ADA sat above the 100-day EMA, currently at $0.362. While the 50-day EMA narrowed to the 100-day EMA, the 100-day EMA widened from the 200-day EMA, delivering a bullish signal.

A move through the 50-day EMA ($0.377) would support a breakout from R1 ($0.392) to target R2 ($0.410). However, failure to move through the 50-day EMA ($0.377) would support a fall through the 100-day EMA ($0.362) and S1 ($0.361) to give the bears a run at S2 ($0.348). A move through the 50-day EMA would send a bullish signal.