ADA Price Prediction: Bulls to Target $0.320 on Risk-on Sentiment

Key Insights:

• On Monday, ADA fell by 2.24% to end the day at $0.306.
• A NASDAQ Composite Index-fueled sell-off led ADA to test support at $0.300 before steadying.
• The technical indicators remain bearish, with ADA sitting below the 50-day EMA, to leave sub-$0.300 in view.

On Monday, ADA fell by 2.24%. Following a 0.32% loss on Sunday, ADA ended the day at $0.306.

A mixed start to the day saw ADA rise to an early morning high of $0.314. Coming up short of the First Major Resistance Level (R1) at $0.318, ADA slid to an early low of $0.300. ADA fell through the First Major Support Level (S1) at $0.310 and the Second Major Support Level (S2) at $0.306.

However, finding late afternoon support, ADA broke back through the Major Support Levels before falling back through S1 to end the day at $0.306.

Input Output HK Silence Leaves ADA in the Hands of the NASDAQ Index

There were no network updates from Input Output HK or founder Charles Hoskinson to provide direction.

On Monday, the NASDAQ Composite Index fell by 1.58%, weighed by news of protests in China over the government’s zero-COVID policy. BlockFi filing for bankruptcy failed to spook investors, however. ADA found late support to reduce the deficit on the day.

This morning, the NASDAQ continued to influence, with the NASDAQ mini gaining 64.75 points. Risk-on sentiment, fueled by bets of the Chinese government easing restrictions, supported riskier assets through the Asian session.

Later today, FTX-related news and the NASDAQ Composite Index will likely remain the key drivers. US economic indicators and Fed chatter could impact market risk sentiment.

ADA Price Action

This morning, ADA was up 1.63% to $0.311. A bullish morning saw ADA rise from an early low of $0.304 to a high of $0.312.

Technical Indicators

ADA needs to avoid the $0.307 pivot to target the First Major Resistance Level (R1) at $0.313 and the Monday high of $0.314. A return to $0.315 would support a bullish afternoon session.

In case of an extended rally, the Second Major Resistance Level (R2) at $0.321 and $0.325 would come into play. The Third Major Resistance Level (R3) sits at $0.335.

A fall through the pivot would bring the First Major Support Level (S1) at $0.299 into play. However, barring a risk-off-fueled sell-off, ADA should avoid sub-$0.295 and the Second Major Support Level (S2) at $0.293. The Third Major Support Level (S3) sits at $0.279.

Negative FTX-linked news would test support at $0.295.

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

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

An ADA move through R1 ($0.313) would bring the 50-day EMA ($0.315) and R2 ($0.321) into play. However, failure to break out from the 50-day EMA would leave ADA under pressure and sub-$0.300 in view.