ADA ended a three-day losing streak on Saturday, rising 2.79% to end the day at $0.368. Dip buyers provided much-needed support while Fed fears and regulatory risk prevented a return to $0.400.
ADA rose 2.79% on Saturday. Reversing a 1.10% loss on Friday, ADA ended the day at $0.368. Despite the bullish session, ADA failed to reach $0.400 for the third session in a row.
A mixed start to the day saw ADA drop to an early morning low of $0.357. Pulling away from the first major support level (S1) at $0.353, ADA rallied to a last hour high of $0.370. ADA broke above the first major resistance level (R1) at $0.365 to close the day at $0.368.
Fed Fear and Regulatory Risk Overshadowed IOHK Updates
On Saturday, Input Output HK (IOHK) shared the latest network improvement plans related to Ouroboros Genesis, a Proof-of-Stake (PoS) protocol that aims at improving the life of the network and ensuring that participants can securely join the network without the need for trusted advice.
Following Friday’s Weekly Development Report and the early launch of EMURGO’s USDA stablecoin, the price outlook remains bullish. However, fear of the Fed and regulatory risk remain headwinds for the crypto market.
A shift in focus towards Tuesday’s US CPI Report will also put pressure on the broader crypto market. After the heated US Jobs Report and hawkish Fed talk, an increase in inflationary pressure would support a more aggressive Fed interest rate path to bring inflation on target.
ADA Price Action: Technical Indicators
This morning, ADA was down 0.27% at $0.367. A mixed start to the day saw ADA rise to an early high of $0.370 before falling to a low of $0.367.
ADA needs to avoid a drop through the $0.365 pivot to target the first major resistance level (R1) at $0.373. A return to $0.370 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 $0.378 and resistance at $0.380. The third main resistance level (R3) sits at $0.391.
A drop through the pivot ($0.365) would bring the first major support level (S1) into play at $0.360. Unless there is a broad-based cryptocurrency sell-off, ADA should avoid less than $0.350. The second major support level (S2) at $0.352 should cap the downside. The third major support level (S3) sits at $0.339.
ADA broke above the 200 day EMA, currently at $0.363. The 50 day EMA has converged to the 100 day EMA, with the 100 day EMA lowering back to the 200 day EMA, providing bearish signals.
A move through R1 ($0.373) would support a run into R2 ($0.378) and the 100-day ($0.378) and 50-day ($0.378) EMAs. However, a bearish cross from the 50 day EMA through the 100 day EMA would give the bears a run at S1 ($0.360). A move through the 50-day EMA ($0.382) would send a bullish signal.
By Audy Castaneda
