ADA Price Prediction: Sub-$0.310 in View on ISM Non-Manufacturing PMI

Key Insights:

• On Sunday, ADA rose by 0.63%, extending the winning streak to three sessions.
• Cardano network updates and broader crypto market support delivered another bullish session.
• The technical indicators were more bullish, with ADA sitting above the 100-day EMA to bring $0.330 into play.

On Sunday, ADA rose by 0.63%. Following a 0.31% gain on Saturday, ADA ended the week up 2.88% to $0.322. Notably, ADA extended the winning streak to three sessions.

A bullish start to the day saw ADA rise to an early morning high of $0.324. Coming up short of the First Major Resistance Level (R1) at $0.325, ADA slid to an early afternoon low of $0.316. Finding support at the First Major Support Level (S1) at $0.316, ADA revisited $0.324 before easing back to end the day at $0.322.

Network News and a Bullish Crypto Session Deliver Weekend Support

On Saturday, founder Charles Hoskinson had talked stablecoins, saying,

“The concept of algorithmic stablecoins is how we get nation-states off of fiat currencies. It’s the gold standard of the digital age. Use a deflationary cryptocurrency like bitcoin or ADA to collateralize a stablecoin that’s used as a national currency.”

The comments come as investors look towards the planned launch of two stablecoins on the Cardano, which continues to deliver price support.

For ADA holders, the current total value locked (TVL) and market cap trends have also shown increased interest in ADA. However, in the current month, the TVL has increased by 3.06% versus a market cap rise of just 0.94%, suggesting a possible ADA price pullback. Network updates could support further ADA upside to narrow the gap and limit the threat of a price reversal.

Therefore, sentiment towards ongoing projects on the Cardano network will remain key over the near term. The successful launch of the two algo stablecoins in the New Year would be a step in the right direction.

While network updates will continue to influence, today’s US economic indicators and the NASDAQ Composite Index will also provide direction. A sharp decline in the ISM Non-Manufacturing PMI would weigh on the NASDAQ and the crypto market.

ADA Price Action

This morning, ADA was up 0.62% to $0.324. A bullish morning saw ADA fall to an early low of $0.321 before rising to a high of $0.325.

The First Major Resistance Level (R1) at $0.325 capped the upside.

Technical Indicators

ADA needs to avoid the $0.321 pivot to retarget the First Major Resistance Level (R1) at $0.325 and last week’s high of $0.326. A return to $0.326 would signal a breakout session. However, ADA would need the broader market to support a breakout afternoon session.

In the event of an extended rally, the bulls will likely take a run at the Second Major Resistance Level (R2) at $0.329 and $0.330. The Third Major Resistance Level (R3) sits at $0.337.

A fall through the pivot would bring the First Major Support Level (S1) at $0.317 into play. However, barring a risk-off-fueled sell-off, ADA should avoid sub-$0.315 and the Second Major Support Level (S2) at $0.313. The Third Major Support Level (S3) sits at $0.305.

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

ADA sat above the 100-day EMA, currently at $0.322. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

A breakout from R1 ($0.325) would give the bulls a run at R2 ($0.329). However, a fall through the 100-day EMA ($0.322) would bring the 50-day EMA ($0.318) and S1 ($0.313) into view. A slide through the 50-day EMA would signal an extended sell-off.