ADA Price Prediction: Bulls to Target $0.315 on Soft US CPI Report

Key Insights:

• ADA ended the day flat on Monday, bucking a bullish broader crypto market trend.
• Binance news led ADA to a December low of $0.301 before the NASDAQ Index supported an afternoon recovery.
• The technical indicators remain bearish, signaling a possible return to sub-$0.300.

On Monday, ADA ended the day flat. Following a 1.92% loss on Sunday, ADA ended the day at $0.307. Notably, ADA wrapped up the day at sub-$0.310 for the second consecutive session.

A bearish start to the day saw ADA slide to an early low of $0.301. ADA fell through the First Major Support Level (S1) at $0.303 before rallying to a late high of $0.308. However, coming up short of the First Major Resistance Level (R1) at $0.313, ADA slipped back to end the day at $0.307.

Binance Account Activity and the NASDAQ Leave ADA Flat

There were no network updates from Input Output HK (IOHK) to provide ADA with direction through the Monday session. The lack of updates left ADA to track the broader crypto market.

Reports of irregular account activity on the Binance exchange sent ADA and the broader crypto market into the red. News of US authorities planning to file charges against Binance for financial crimes added to the bearish sentiment.

However, the NASDAQ Index delivered afternoon support, with ADA reversing losses from the morning session to end the day flat. Hopes of softer US inflation numbers drove demand for riskier assets. Today’s US CPI Report could define the Fed’s interest rate path over the near term.

While there were no network updates to mute the NASDAQ Index support, founder Charles Hoskinson talked about the SEC and what would happen should the SEC classify ADA as a security. The comments may have capped the upside late in the Monday session.

In an Ask Me Anything (AMA) YouTube session, Hoskinson said it would cost significant amounts of money in a drawn-out legal battle. With the SEC and the CFTC labeling more cryptos as securities, the SEC v Ripple case could have significant ramifications.

During the same AMA session, Hoskinson had this to say about the SEC v Ripple case,

“I heard rumors that the Ripple case will be settled on December 15, and that could have catastrophic implications for the industry, one way or the other. But you know, just keep moving forward. Regardless of what happens, it’s a decentralized ecosystem that you guys control.”

ADA Price Action

This morning, ADA was down by 0.65% to $0.305. A bearish start to the day saw ADA fall from an early morning high of $0.307 to a low of $0.304.

Technical Indicators

ADA needs to break out from the $0.305 pivot to target the First Major Resistance Level (R1) at $0.310. A return to $0.310 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 $0.312 and $0.315. The Third Major Resistance Level (R3) sits at $0.319.

However, a fall through the pivot would bring the First Major Support Level (S1) at $0.303 into play. In case of a risk-off-fueled sell-off, the Second Major Support Level (S2) at $0.299 should limit the downside. The Third Major Support Level (S3) sits at $0.291.

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

ADA sat below the 50-day EMA, currently at $0.312. The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.

A move through R1 ($0.310) would give the bulls a run at the 50-day EMA ($0.312) and R2 ($0.312). However, failure to move through the 50-day EMA ($0.312) would leave ADA under pressure.