ADA Price Prediction: Network Updates Bring Sub-$0.300 Back into View
- On Wednesday, ADA rose by 1.92%. Following a 2.63% gain on Tuesday, ADA ended the day at $0.318.
- FTX contagion risk continued to ease mid-week, delivering support, with talk of a Fed pivot providing further upside.
- However, the technical indicators remain bearish, with ADA sitting below the 50-day EMA, leaving sub-$0.300 in view.
On Wednesday, ADA rose by 1.92%. Following a 2.63% gain on Tuesday, ADA ended the day at $0.318. Notably, ADA avoided sub-$0.300 for the first time in three sessions.
A mixed start to the day saw ADA fall to an early low of $0.309. Steering clear of the First Major Support Level (S1) at $0.301, ADA rallied to a late high of $0.320. ADA briefly broke through the First Major Resistance Level (R1) at $0.319 before ending the day at $0.318.
On Wednesday, FTX contagion risk continued to ease, driving demand for ADA and the broader crypto market. Hopes of FTX assets and cash holdings cushioning the impact on creditors have been the key driver this week.
As a result, Cardano network updates took a back seat through the first half of the week.
From the US, the FOMC meeting minutes delivered a late push, with FOMC members talking about slowing the pace of rate hikes.
However, network updates weighed on buyer appetite this morning.
Stablecoin Developer Ardana Hits Pause
This morning, the all-on-one decentralized stablecoin ecosystem Ardana announced a halt to its stablecoin development. Ardana made the announcement on Twitter, saying,
“Unfortunately, due to recent developments with regard to funding and project timeline uncertainty, the Ardana project has had to come to a halt. Our code will remain open source for builders to continue our work going forward as they wish.”
“Remaining funds and treasury balances etc will be held by Ardana Labs until another competent dev team in the community comes forward to continue our work.”
While one stablecoin project should have a limited impact on the influx of projects onto the Cardano network, the latest announcement raises the question of whether other projects will face funding issues, amongst other things, and announce the need to stop development. Such a trend would be ADA price negative.
ADA Price Action
This morning, ADA was down 0.63% to $0.316. A mixed start to the day saw ADA rise to an early high of $0.321 before falling to a low of $0.315.
ADA needs to avoid a fall through the $0.316 pivot to retarget the First Major Resistance Level (R1) at $0.322. A return to $0.320 would signal a breakout session. Bullish crypto market sentiment would support a breakout from R1.
In case of an extended rally, the Second Major Resistance Level (R2) at $0.327 and $0.330 would come into play. The Third Major Resistance Level (R3) sits at $0.338.
A fall through the pivot would bring the First Major Support Level (S1) at $0.311 into play. However, barring a contagion-fueled sell-off, ADA should avoid sub-$0.300. The Second Major Support Level (S2) at $0.305 should limit the downside.
The Third Major Support Level (S3) sits at $0.294.
This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.
ADA sat below the 50-day, currently at $0.321. The 50-day EMA slipped back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA, delivering bearish signals.
A move through the 50-day EMA ($0.321) would support a breakout from R1 ($0.322) to target and R2 ($0.327). However, failure to move through the 50-day EMA would leave sub-$0.300 in play.