ADA Price Prediction: Bulls to Target $0.355 on IOHK Updates

Key Insights:

• On Thursday, ADA rallied by 3.68% to end the day at $0.338.
• Input Output HK (IOHK) network updates and news of a possible FTX reboot supported the bullish session.
• The technical indicators remain bullish, signaling a return to $0.400.

ADA rallied by 3.68% on Thursday. Partially reversing a 5.78% slide from Wednesday, ADA ended the day at $0.338. Notably, ADA came up short of $0.350 for the first time in seven sessions.

A mixed start to the day saw ADA fall to an early low of $0.326. Steering clear of the First Major Support Level (S1) at $0.316, ADA rallied to a late high of $0.343. However, coming up short of the First Major Resistance Level (R1) at $0.346, ADA eased back to end the day at $0.338.

Network Updates and FTX News Delivers Support

On Thursday, Input Output HK (IOHK) released the latest network update timelines in a series of tweets. According to the latest update,

“The next Cardano upgrade targeted for February will bring new built-in functions to Plutus, the smart contract programming language for the Cardano blockchain, to support ECDSA and Schnorr cryptographic signatures to make it easier for developers to build cross-chain apps.”

IOHK added that the upgrade would deliver improved interoperability and secure cross-chain DApp development, making it easier for developers to work with other blockchains securely.

As IOHK looks to drive an influx of new projects onto the Cardano network, the planned upgrade further supports the positive outlook and a pickup in ADA usage.

While network updates were positive, reports of a possible FTX reboot supported the bullish session.

IOHK will release the Weekly Development Report this afternoon, with the stats likely to provide direction. A large influx of projects would support an ADA breakout. Updates on the planned launches of two algorithmic stablecoins would also influence. However, the broader crypto market would need to deliver a bullish session.

ADA Price Action

This morning, ADA was up 0.30% to $0.339. A mixed start to the day saw ADA fall to an early low of $0.336 before rising to a high of $0.341.

Technical Indicators

ADA needs to avoid a fall through the $0.336 pivot to test the First Major Resistance Level (R1) at $0.345 and resistance at $0.350. A move through the Thursday high of $0.343 would signal a breakout session. However, Cardano updates and the broader crypto market would need to support a bullish session.

In the event of another breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.353 and resistance at $0.355. The Third Major Resistance Level (R3) sits at $0.370.

A fall through the pivot ($0.336) would bring the First Major Support Level (S1) at $0.328 into play. Barring a broad-based crypto sell-off, ADA should avoid sub-$0.320 and the Second Major Support Level (S2) at $0.319. The Third Major Support Level (S3) sits at $0.302.

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

ADA sat above the 50-day EMA, currently at $0.336. The 50-day EMA moved away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.

A hold above the 50-day EMA ($0.336) would support a breakout from R1 ($0.345) to target R2 ($0.353) and $0.355. However, a fall through the 50-day EMA ($0.336) would bring S1 ($0.328) and the 100-day EMA ($0.320) into view. A fall through the 50-day EMA would signal a shift in investor sentiment.