ADA Price Prediction: Network and TVL Updates Bring $0.350 into Play

Key Insights:

• On Thursday, ADA extended its winning streak to five sessions, rising by 2.17% to end the day at $0.330.
• US economic indicators and the broader crypto market gave ADA a much-needed boost.
• The technical indicators are bullish, signaling a return to $0.400.

ADA rose by 2.17% on Thursday. Following a 0.31% gain on Wednesday, ADA ended the day at $0.330. Notably, ADA wrapped up the day at its highest end price since November 16 and extended its winning streak to five sessions.

After a range-bound morning session, ADA fell to an early afternoon low of $0.315. Steering clear of the First Major Support Level (S1) at $0.313, ADA rallied to a high of $0.335. ADA broke through the First Major Resistance Level (R1) at $0.328 and the Second Major Resistance Level (R2) at $0.333.

However, a pullback saw ADA fall through R2 and R1 before a late move through R1 to end the day at $0.330.

Network Updates, Usage, and US Inflation Deliver a Bullish Session

On Thursday, Input Output HK (IOHK) released the first iteration of the Cardano sidechain toolkit. According to IOHK,

“The toolkit allows the sidechain to have its own consensus algorithm and features. The sidechain is connected to the main chain through a bridge that allows asset transfer between chains. The finality of the blocks is determined through a consensus mechanism that relies on the security of the main chain.”

The announcement went on to say,

“The toolkit’s building blocks are designed to empower developers.”

Currently, the EVM sidechain app is undergoing an audit and will be available as a public testnet later this month. The planned release is another example of the progress that developers have made to deliver an ecosystem driving innovation and growth.

While development work continues to draw interest and provide price support, DeFi activity has also picked up. According to DeFi Llama, the Cardano Total Value Locked (TVL) stood at $66.78 million this morning. While down 1.22% over 24 hours, the TVL is up 31.5% year-to-date.

The shift in sentiment toward Cardano has also led to an increase in whale activity. According to Santiment, 28 new addresses hold more than one million ADA, all formed in 2023. Reacting to market dynamics, Binance launched ADA-linked products this week, supporting a pickup in trading volume and demand.

Today, TVL and network updates will continue to provide direction. However, US economic indicators and corporate earnings could test investor appetite this afternoon.

ADA Price Action

This morning, ADA was down 0.61% to $0.328. A mixed start to the day saw ADA rise to an early high of $0.331 before falling to a low of $0.324.

Technical Indicators

ADA must avoid the $0.327 pivot to target the First Major Resistance Level (R1) at $0.338. A return to $0.330 would signal an extended breakout session. However, the broader crypto market and Cardano news need to support a bullish session.

In the event of an extended rally, the bulls would likely test the Second Major Resistance Level (R2) at $0.347 and resistance at $0.350. The Third Major Resistance Level sits at $0.367.

A fall through the pivot ($0.327) would bring the First Major Support Level (S1) at $0.318 into play. Barring a broad-based crypto sell-off, ADA should avoid sub-$0.310 and the Second Major Support Level (S2) at $0.307. The Third Major Support Level (S3) sits at $0.287.

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

ADA sat above the 50-day EMA, currently at $0.302. After Monday’s bullish cross, the 50-day EMA pulled further away from the 200-day EMA, with the 100-day EMA crossing through the 200-day EMA, delivering bullish signals.

A hold above the 50-day EMA ($0.302) would support a breakout from R1 ($0.338) to target R2 ($0.347). However, a fall through S1 ($0.318) would give the bears a run at S2 ($0.307) and the 50-day EMA ($0.302). A fall through the 50-day EMA would signal a shift in investor sentiment.