ADA Price Prediction: Stablecoin Launch Needed to Deliver $0.400
- On Tuesday, ADA saw red for a third consecutive day, falling by 1.14% to end the day at $0.346.
- A lack of network updates left ADA in the hands of the broader crypto market, with US recession jitters weighing on riskier assets.
- However, the technical indicators remain bullish, signaling a return to $0.400.
ADA fell by 1.14% on Tuesday. Following a 0.28% loss on Monday, ADA ended the day at $0.346. Notably, ADA wrapped up the day at sub-$0.35 for the first time in four sessions.
A bearish start to the day saw ADA fall to an early morning low of $0.343. Steering clear of the First Major Support Level (S1) at $0.336, ADA rose to an early afternoon high of $0.358. However, coming up short of the First Major Resistance Level (R1) at $0.366, ADA fell back to sub-$0.350.
Network Updates Fail to Deliver ADA Price Support
It was a busier Tuesday session, with several Input Output HK (IOHK) updates for investors to consider. Early in the session, IOHK announced the release of the Daedalus 5.2.0 Mainnet with the necessary instructions. Later in the day, IOHK reshared the latest on Mithril.
However, neither provided price support as investors await the launches of two algorithmic stablecoins on the Cardano network.
Last week, COTI shared the latest on the planned January launch of Djed. While several issues reportedly need addressing, COTI stated that the required fixes would not affect the planned launch of Djed in January.
However, with no firm dates for the launches of the two stablecoins and no other project news for investors to consider, ADA slipped back, with US recession fears weighing on riskier assets.
Today, network updates and TVL numbers need monitoring. However, the broader crypto market needs to support a bullish session. A lack of network updates would leave US economic indicators and the NASDAQ Index to influence through the afternoon session. US wholesale inflation and retail sales figures will draw interest.
This morning, the Cardano total value locked (TVL) stood at $72.08 million, up 0.44% over 24 hours. While down from a January high of $73.02 million, the TVL is up 41.9% year-to-date. A move through $73 million would provide price support.
ADA Price Action
This morning, ADA was up 0.87% to $0.349. A bullish start to the day saw ADA rise from an early low of $0.344 to a high of $0.353.
ADA needs to avoid a fall through the $0.349 pivot to retarget the First Major Resistance Level (R1) at $0.55 and the Tuesday high of $0.358. A move through the morning high of $0.353 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 $0.364. The Third Major Resistance Level (R3) sits at $0.379.
A fall through the pivot ($0.349) would bring the First Major Support Level (S1) at $0.340 into play. Barring a broad-based crypto sell-off, ADA should avoid sub-$0.335 and the Second Major Support Level (S2) at $0.334. The Third Major Support Level (S3) sits at $0.319.
This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.
ADA sat above the 50-day EMA, currently at $0.336. 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 S1 ($0.340) and the 50-day EMA ($0.336) would support a breakout from R1 ($0.355) to target R2 ($0.364). However, a fall through S1 ($0.340) and the 50-day EMA ($0.336) would give the bears a run at S2 ($0.334) and sub-$0.330. A fall through the 50-day EMA would signal a shift in investor sentiment.