ADA Price Prediction: Bulls to Revisit $0.250 or Face a New 2022 Low

Key Insights:

• ADA rose by 0.82% on Friday to end the day at $0.246.
• Cardano network updates and NFT statistics delivered a trend-bucking session.
• However, the technical indicators remain bearish, signaling a possible return to sub-$0.240.

ADA rose by 0.82% on Friday. Partially reversing a 1.61% loss from Thursday, ADA ended the day at $0.246. Notably, ADA ended a three-day losing streak while falling to a 2022 low of $0.239.

A bearish start to the day saw ADA slide to a new 2022 low of $0.239. Finding support at the First Major Support Level (S1) at $0.240, ADA rallied to a late high of $0.246. However, coming up short of the First Major Resistance Level (S0.248), ADA fell back to $0.244 before ending the day at $0.246.

NFT Statistics and Network Updates Delivered ADA Price Support

It was a quiet Friday session, with no Input Output HK network updates for investors to consider. The lack of stats left ADA in the hands of the broader crypto market through the morning session.

However, the latest Cardano-NFT statistics delivered much-needed support. According to Opencnft, Cardano-NFT trading volume hit a December high of 1,761,388 ADA on Friday. While sitting well below the October ATH of 4,271,973 ADA, NFT trading volumes recovered through December.

Development activity numbers were also price-positive on Friday. According to Santiment, Cardano development activity rates led the way while ranking sixth on return on investments (ROI).

However, the anticipated influx of projects following the Vasil hard fork has yet to materialize, which has left ADA under pressure.

Today, a lack of network updates will likely leave ADA in the hands of the broader crypto market.

ADA Price Action

This morning, ADA was down 0.41% to $0.245. A bearish start to the day saw ADA fall from an early high of $0.246 to a low of $0.245.

Technical Indicators

ADA needs to avoid a fall through the $0.244 pivot to target the First Major Resistance Level (R1) at $0.248. A move through the Friday high of $0.246 would signal a bullish session. However, ADA would need the broader market to support a breakout afternoon session.

In the event of an extended rally, the bulls will likely take a run at the Second Major Resistance Level (R2) at $0.251. The Third Major Resistance Level (R3) sits at $0.258.

A fall through the pivot would bring the First Major Support Level (S1) at $0.241 into play. Barring another sell-off, ADA should avoid sub-$0.235. The Second Major Support Level (S2) at $0.237 should limit the downside. The Third Major Support Level (S3) sits at $0.230.

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

ADA sat below the 50-day EMA, currently at $0.254. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA, delivering bearish signals.

A move through R1 ($0.248) would support a run at R2 ($0.251) and the 50-day EMA ($0.254). A breakout from the 50-day EMA would send a bullish signal. However, failure to move through the 50-day EMA (0.254) would leave sub-$0.240 in view.