ADA Price Prediction: Failure to Revisit $0.340 Leaves Sub-$0.300 in Play
- On Thursday, cardano (ADA) fell by 2.11%, marking the Seventh loss from ten sessions.
- Withdrawal freezes and Solana-based stablecoin suspensions soured the mood.
- The technical indicators remained bearish, with ADA sitting below the 50-day EMA, leaving $0.300 in view.
On Thursday, ADA fell by 2.11%. Following a 1.48% loss on Wednesday, ADA ended the day at $0.325. Notably, ADA fell short of $0.340 for the first time since the collapse of FTX.
Tracking the broader crypto market, ADA rose to an early morning high of $0.334. Coming up short of the First Major Resistance Level (R1) at $0.343, ADA slid to a late morning low of $0.299. ADA briefly fell through the First Major Support Level (S1) at $0.323 and the Second Major Support Level (S2) at $0.313 before ending the day at $0.325.
FTX Contagion News Leaves ADA on the Back Foot
On Thursday, reports of exchanges suspending support of Solana-based USD Tether (USDT) and USD Coin (USDC) weighed on investor sentiment. Investor confidence has failed to recover since the collapse of FTX, with updates on the events that led to the collapse raising concerns over other centralized crypto platforms.
Binance, ByBit, and OKX were among the exchanges to suspend the deposit and withdrawal of the Solana-based stablecoins. However, Binance removed the Solana-based USDT suspension later in the day, providing some relief.
Adding to the bearish mood was hawkish Fed chatter that eased bets of a December Fed pivot. On Thursday, FOMC member Bullard pointed out that Fed rate hikes have only had a limited impact on inflation. The comments gave investors one more factor to consider.
However, recovering from a 2022 low of $0.299, ADA and the broader crypto market found investor support this morning. While contagion risk remains a threat, market conditions have temporarily normalized.
Later today, Input Output HK’s (IOHK) weekly development update will influence. Investors would react favorably to a jump in Cardano network projects.
ADA Price Action
This morning, ADA was up 0.92% to $0.328. A mixed morning saw ADA fall to an early low of $0.324 before rising to a high of $0.332.
ADA needs to avoid the $0.319 pivot to target the First Major Resistance Level (R1) at $0.340. A move through the Thursday high of $0.334 would signal a possible breakout. However, ADA would also need the support of the broader market and an upbeat weekly development report for a sustained rally.
In case of an extended rally, the Second Major Resistance Level (R2) at $0.354 would come into play. The Third Major Resistance Level (R3) sits at $0.389.
A fall through the pivot would bring the First Major Support Level (S1) at $0.305 into play. However, barring a contagion-fueled sell-off, ADA should avoid sub-$0.300 and Second Major Support Level (S2) at $0.284.
The Third Major Support Level (S3) sits at $0.249.
This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.
ADA sat below the 50-day, currently at $0.342. 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.
A move through R1 ($0.340) and the 50-day EMA ($0.342) would bring R2 ($0.354) into play. However, failure to move through the 50-day EMA would leave ADA under pressure and sub-$0.300 in view.