ADA Price Prediction: Bulls to Target $0.400 on Stablecoin Updates

Key Insights:

• ADA rallied by 3.90% on Wednesday. Reversing a 4.27% slump from Tuesday, ADA ended the day at $0.373.
• News of the planned launch of the Djed algorithmic stablecoin on the Cardano network supported the breakout session.
• The technical indicators are bullish, signaling a return to $0.400.

ADA rallied by 3.90% on Wednesday. Reversing a 4.27% slide from Tuesday, ADA ended the day at $0.373. Notably, ADA revisited the $0.38 handle for the fifth consecutive session.

A bearish start to the day saw ADA fall to an early low of $0.347. Finding support at the First Major Support Level (S1) at $0.348, ADA rallied to a late high of $0.380. ADA briefly broke through the First Major Resistance Level (R1) at $0.376 before easing back to end the session at $0.373.

Algorithmic Stablecoin Launch Date Supported a Breakout Session

On Wednesday, COTI announced the launch date of the Djed algorithmic stable. Launching next week, ADA should find price support on increased utilization ahead of the launch of the EMURGO algorithmic stablecoin.

The news shifted investor attention away from the temporary disruption of nodes that contributed to the Tuesday sell-off.

Today, investors should monitor Input Output HK (IOHK) and EMURGO USDA stablecoin updates. An official launch date of the USDA stablecoin should deliver further ADA price support.

In the afternoon session, US economic indicators will also influence the NASDAQ Index and the broader crypto market. A sharp rise in US jobless claims could test buyer appetite. US corporate earnings have fueled recessionary fears while raising the expectations of a Fed pivot.

However, uncertainty about the US economic outlook lingers. Dire US economic indicators could raise fears of a hard landing.

ADA Price Action

This morning, ADA was up 0.80% to $0.376. A bullish start to the day saw ADA rally from an early low of $0.373 to a high of $0.389. ADA briefly broke through the First Major Resistance Level (R1) at $0.386.

Technical Indicators

ADA needs to avoid a fall through the $0.367 pivot to retarget the First Major Resistance Level (R1) at $0.386 and the morning high of $0.389. A return to $0.385 would signal a breakout session. However, Cardano updates and the broader crypto market would need to support a bullish session.

In the event of a breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.400. The Third Major Resistance Level (R3) sits at $0.433.

A fall through the pivot ($0.367) would bring the First Major Support Level (S1) at $0.353 into play. Barring a broad-based crypto sell-off, ADA should avoid sub-$0.350 and the Second Major Support Level (S2) at $0.334. The Third Major Support Level (S3) sits at $0.301.

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

ADA sat above the 50-day EMA, currently at $0.361. The 50-day EMA pulled 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 ($0.361) would support a breakout from R1 ($0.386) to target R2 ($0.400). However, a fall through the 50-day EMA ($0.361) would give the bears a run at S1 ($0.353) and the 100-day EMA ($0.345). A fall through the 50-day EMA would send a bearish signal.