ADA joined the broader crypto market in a bearish session on Friday, falling 3.23%, to end the day at $0.360. Input Output HK (IOHK) weekly development updates faded to the background as investors responded to the Binance news and jitters from Europe’s banking sector. However, technical indicators remained bullish, leaving $0.40 up for grabs.
ADA fell 3.23% on Friday. Reversing a 3.05% gain on Thursday, ADA ended the day at $0.360. Significantly, ADA avoided a return below $0.350 for the second session in a row.
A mixed start to the day saw ADA rally to an early high of $0.373 before pulling back. Missing the first main resistance level (R1) at $0.388, ADA fell to a late low of $0.355. However, finding support at the first major support level (S1) at $0.355, ADA ended the day at $0.360.
Investors Ignore IOHK’s Weekly Development Report
Input Output HK (IOHK) released the Weekly Development Report on Friday. The numbers continued to disappoint, with new projects launched on the Cardano network stalling for the third time in four weeks. Regulatory uncertainty and scrutiny from lawmakers could be affecting project launches.
Prior to the Vasil hard fork, the number of projects launched on Cardano was 98, with 1,100 projects built on the Cardano network.
Other statistics included 63.5 million transactions (Previous Report: 63.0 million), 8.03 million native tokens (PR: 7.97 million), and 70,937 token policies (PR: 70,737).
Binance and European Banking News Weigh on Investor Sentiment
Disappointing weekly development update numbers left ADA in the hands of the broader crypto market.
The news that Binance suspended deposits and withdrawals due to a temporary glitch sent ADA and the crypto market into negative territory. News of Binance employees helping users bypass KYC protocols was also bearish.
The latest news about Binance is likely to draw increased regulatory and lawmaker scrutiny at a time when US lawmakers and regulators are already investigating dealings on the platform.
ADA Price Action – Technical Indicators
This morning, ADA was up 0.28% at $0.361. A range-bound start to the day saw ADA fall to an early low of $0.359, before rising to a high of $0.361.
ADA has to move through the pivot at $0.363 to target the first major resistance level (R1) at $0.370, and Friday’s high of $0.373. A return to $0.365 would support a bullish session. However, updates to the Cardano network and the broader crypto market should provide support.
In the event of a breakout, ADA would likely test the second major resistance level (R2) at $0.381. The third main resistance level (R3) sits at $0.399.
ADA broke above the 50-day EMA, currently at $0.355. The 50-day EMA has turned away from the 200-day EMA, with the 100-day EMA lowering back to the 200-day EMA, providing bullish signals.
Avoiding the 50-day EMA ($0.355) would support a break of R1 ($0.370) to give the bulls a run into R2 (0.381). However, a drop through the 50-day EMA ($0.355) would bring the S1 ($0.352) and the 200-day EMA ($0.350) into view. A slide through the 50-day EMA would send a bearish signal, and it would give the bears a run at the major support levels.
By Audy Castaneda
