ADA Price Prediction: Sub-$0.39 Remains in Play for the Bears

Key Insights:

• ADA faces a third consecutive daily loss, with the crypto bears in full control.
• Liquidation numbers for the broader crypto market paint a gloomy picture, with ADA facing the prospect of a return to sub-$0.39.
• Key technical indicators bearish. ADA sits well below the 50-day EMA.

On Thursday, ADA slid by 6.85%. Following a 1.42% loss on Wednesday, ADA ended the day at $0.4787.

Fallout from the collapse of TerraUST (UST) and Terra LUNA continued to pressure the crypto market. Anticipation of a marked shift in the regulatory landscape remains a headwind for the crypto majors.`

Adding to the market angst remains investor sentiment towards Fed monetary policy, inflation, and the economic outlook.

ADA Under Pressure Again

There was no major news to deliver the morning loss, with ADA tracking the broader market.

Looking at the broader market liquidations, the signals remain bearish.

According to Coinglass,

• Total liquidations over the last 24-hours stood at $370.66 million.
• Total liquidations over the past 24-hours stood at $2.60 million.

Over the last 4 hours, the liquidations have slowed, however, suggesting a possible bottoming out.

ADA Price Action

At the time of writing, ADA was down 3.24% to $0.4632.

A mixed start to the day saw ADA rise to an early high of $0.4832 before falling to a low of $0.4482.

ADA fell through the First Major Support Level at $0.4535 before returning to $0.46 levels.

Technical Indicators

ADA will need to move through the $0.4869 pivot to target the First Major Resistance Level at $0.5120. ADA would need broader crypto market support to break out from the morning high of $0.4832.

In the event of an extended rally, ADA should test the Second Major Resistance Level at $0.5456 and resistance at $0.55. The Third Major Resistance Level sits at $0.6043.

Failure to move through the pivot at $0.4869 would bring the First Major Support Level at $0.4535 back into play.

Barring another extended sell-off throughout the day, ADA should avoid sub-$0.40. The Second Major Support Level at $0.4282 should limit the downside.

The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. At the time of writing, ADA sits below the 50-day EMA, currently at $0.5176. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also fell back from the 200-day EMA, price negative.

A move through the 50-day EMA would support a return to $0.55.