ADA Price Prediction: TVL and IOHK Updates to Deliver $0.420
Key Insights:
- ADA rose by 0.25% on Thursday to extend its winning streak to three sessions.
- Market sentiment toward the launch of the Djed algorithmic stablecoin and the planned launch of the USDA stablecoin delivered support.
- The technical indicators remain bullish, supporting a return to $0.450.
ADA rose by 0.25% on Thursday. Following a 1.79% gain on Wednesday, ADA ended the day at $0.398. ADA revisited $0.400 for the third time since November 8.
After a mixed morning, ADA rose to a late afternoon high of $0.414. ADA broke through the First Major Resistance Level (R1) at $0.409 before sliding to a late low of $0.392. However, steering clear of the First Major Support Level (S1) at $0.379. ADA revisited $0.404 before easing back.
Stablecoin Launch News and Network Sentiment Delivered Support
On Thursday, Input Output HK (IOHK) shared the latest from COTI following the launch of the DJED stablecoin. According to the COTI Recap,
- A total liquidity of 28 million ADA on the platform.
- 1.85 million DJEd minted and 40k burnt.
- 21 million SHEN minted and 73k burnt.
- DJED and SHEN were on the top Cardano DEXs, including Miniswap, Wingriders, and MuesliSwap.
According to DeFi Llama, the Cardano total value locked (TVL) stood at $97.8 million this morning, up 1.06% over 24 hours. However, year-to-date, the TVL has surged by 92.6% versus an ADA gain of 61.8% and a Cardano Market Cap rise of 63.6%.
This morning, the DJED reserve ratio stood at 643% with base reserves of 29,267,672.99 ADA, according to the Djed page, which sits within the 400% to 800% collateral ratio commitment.
Today, network updates will continue to provide direction. IOHK will release the Weekly Development Update. Project numbers and transaction details will likely be areas of focus. An influx of projects onto the Cardano network would support the current run toward $0.450.
Updates on the launch of the EMURGO USDA stablecoin will also need monitoring.
However, the US economic indicators and the NASDAQ Index will also influence. The all-important US Jobs Report and ISM Non-Manufacturing PMI numbers will draw interest. Weak NFP numbers, softer wage growth, and a more marked contraction across the services sector could reignite recession fears.
Following the gloomy Amazon.com (AMZN) outlook on Thursday, Apple (AAPL) and Alphabet Inc. (GOOGL) will release results today. Expect gloomy forecasts to test buyer appetite for riskier assets.
ADA Price Action
This morning, ADA was up 0.50% to $0.400. A mixed start to the day saw ADA fall to an early low of $0.396 before rising to a high of $0.404.
Technical Indicators
ADA needs to move through the $0.401 pivot to target the First Major Resistance Level (R1) at $0.411 and the Thursday high of $0.414. A return to $0.410 would support a bullish session. However, Cardano updates and the broader crypto market would need to provide support.
In the event of a breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.423. The Third Major Resistance Level (R3) sits at $0.445.
Failure to move through the pivot ($0.401) would bring the First Major Support Level (S1) at $0.389 into play. Barring a broad-based crypto sell-off, ADA should avoid sub-$0.380 and the Second Major Support Level (S2) at $0.379. The Third Major Support Level (S3) sits at $0.357.
This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.
ADA sat above the 50-day EMA, currently at $0.386. 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 ($0.389) and the 50-day EMA ($0.386) would support a breakout from R1 ($0.411) to target R2 ($0.423). However, a fall through S1 ($0.389) and the 50-day EMA ($0.386) would give the bears a run at S2 ($0.379) and the 100-day EMA ($0.372). A fall through the 50-day EMA would send a bearish signal.
