ADA Price Prediction: Bulls to Target $0.390 on Network Sentiment

Bob Mason
Published: Jan 24, 2023, 03:36 UTC

Key Insights: ADA saw a four-day winning streak end on Monday. A lack of network updates left investors to lock in profits, with reports of a network

ADA technical analysis - FX Empire.

Key Insights:

  • ADA saw a four-day winning streak end on Monday.
  • A lack of network updates left investors to lock in profits, with reports of a network outage leaving ADA in the red.
  • However, the technical indicators are bullish, signaling a return to $0.400.

ADA fell by 0.27% on Monday. Partially reversing a 2.17% gain from Sunday, ADA ended the day at $0.375. Notably, ADA revisited the $0.38 handle for the third time since November 8.

A mixed start to the day saw ADA rise to an early morning high of $0.384. Coming up short of the First Major Resistance Level (R1) at $0.388, ADA slid to an early morning low of $0.369. However, steering clear of the First Major Support Level (S1) at $0.364, ADA revisited $0.380 before easing back into a range-bound afternoon session.

Network Outage Leaves ADA in Negative Territory

There were no Input Output (HK) updates to provide direction at the start of the week. However, news of a network outage drew investor attention.

According to an IOG Announcement, an incident led to 50% of Cardano nodes disconnecting and restarting, impacting relay nodes and block-producing nodes but not edge nodes.

The announcement went on to say,

“This appears to have been triggered by a transient anomaly causing one of two reactions in the node; some disconnected from a peer, others threw an exception and restarted. Such transient issues (even if they were to affect all nodes) were considered in the design of the Cardano-node and consensus. The systems behaved exactly as expected.”

Co-founder Charles Hoskinson shared his view, saying,

“This weekend showed the value of self-healing, fully decentralized networks. A cascade of node stalls can recover and continue operation without noticeable disruption. That’s a truly resilient system and one that will continue to evolve and thrive in years to come.”

Hoskinson also shared two images to illustrate the difference between an outage and the Cardano network event.

The session loss was modest, however. Market sentiment toward the development of the Cardano network and increased ADA adoption continues to support a bullish price outlook.

Today, chatter on the algorithmic stablecoin launches will likely be a focal point along with other network-linked announcements.

ADA Price Action

This morning, ADA was up 1.07% to $0.379. A mixed start to the day saw ADA fall to an early low of $0.373 before rising to a high of $0.380.

ADA on the move.
ADAUSD 240123 Daily Chart

Technical Indicators

ADA needs to avoid a fall through the $0.376 pivot to test the First Major Resistance Level (R1) at $0.383 and the Monday high of $0.384. A move through the morning high of $0.380 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 $0.391 and resistance at $0.400. The Third Major Resistance Level (R3) sits at $0.406.

A fall through the pivot ($0.376) would bring the First Major Support Level (S1) at $0.368 in play. Barring a broad-based crypto sell-off, ADA should avoid sub-$0.360. The Second Major Support Level (S2) at $0.361 should limit the downside. The Third Major Support Level (S3) sits at $0.346.

ADA resistance levels in play above the pivot.
ADAUSD 240123 Hourly Chart

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

ADA sat above the 50-day EMA, currently at $0.357. The 50-day EMA pulled further away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.

A hold above the Major Support Levels and the 50-day EMA ($0.357) would support a breakout from R1 ($0.383) to target R2 ($0.391) and $0.400. However, a fall through S1 ($0.368) would bring S2 ($0.361) and the 50-day EMA ($0.357) into view. A fall through the 50-day EMA would signal a shift in investor sentiment.

EMAs are bullish.
ADAUSD 240123 4-Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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