ADA joined the broader crypto market in the red on Friday, falling 2.28% to end the session at $0.343. The reaction of the cryptocurrency market to the news that the main cryptocurrency platform cut ties with Silvergate Bank sent ADA, as well as the cryptocurrency market in general, into a tailspin. Technical indicators remained bearish, putting less than $0.320 into play.
ADA fell 2.28% on Friday. Following a 2.50% loss on Thursday, ADA ended the day at $0.343. The bearish session saw ADA visit below $0.330 for the first time since January 19.
A bearish start to the day saw ADA fall from an opening price high of $0.351 to a morning low of $0.321. ADA fell through the first major support level (S1) at $0.343, and through the second major support level (S2) at $0.336. Breaking away from the third major support level (S3) at $0.319, however, ADA broke above S2 to end the day at $0.343. S1 capped the lead late in the session.
Silvergate Bank Updates Leave IOHK Updates Sidelined
On Friday, the news that crypto clients cut ties with Silvergate Bank shook investor confidence. Major crypto exchanges including Coinbase, Crypto.com, Paxos, and Bitstamp have cut ties with the crypto-friendly bank.
The move came in response to the bank’s delaying the filing of its annual report on Wednesday, sparking speculation that the bank may be on the verge of collapse.
The news overshadowed a bullish session for the NASDAQ Composite Index. On Friday, the NASDAQ rose 1.97% on the hope that the Fed would raise interest rates slowly and steadily. US economic data was also bullish, with the all-important ISM Non-Manufacturing PMI seeing a modest decline to 55.1 from 55.2.
IOHK Weekly Dev Update Disappoints Again
Input Output HK (IOHK) released the Weekly Development Report on Friday. Said report highlights, among other pieces of information, that 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 62.2 million transactions (Previous Report: 61.8 million), 7.87 million native tokens (PR: 7.83 million), and 70,258 token policies (PR: 70,039).
The modest increase in the number of projects failed to distract investors from the broader crypto market turmoil.
ADA Price Action – Technical Indicators
ADA has to avoid the pivot at $0.338 to target the first major resistance level (R1) at $0.356. A move through the Friday high of $0.351 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 $0.368 and resistance at $0.370. The third main resistance level (R3) sits at $0.398.
A move through R1 ($0.356) and the 50-day EMA ($0.359) would support a run into R2 ($0.368) and the 100-day ($0.369) and 200-day EMAs ($0.370). However, a failure to move through the 50-day EMA ($0.359) would leave major support levels in play. A move through the 50-day EMA would send a bullish signal.
By Audy Castaneda
