ADA bucked the broader market trend on Friday, rising 1.94% to end the day at $0.316. Another US Jobs Report and the news that SVB Financial Group closed its doors failed to spook investors with rising TVL numbers. Technical indicators remained bearish, leaving less than $0.285 up for grabs.
ADA rose 1.94% on Friday. Partially reversing a 2.52% loss on Thursday, ADA ended the day at $0.316.
A bearish start to the day saw ADA drop to a low of $0.298 by late morning. ADA briefly fell through the first major support level (S1) at $0.301 before hitting a last-hour high of $0.319. However, being range bound to the first major resistance level (R1) at $0.321, ADA pulled back to end the day at $0.316.
Investors Ignore IOHK Weekly Development Report
Input Output HK (IOHK) released the Weekly Development Report on Friday. The numbers were disappointing, with no new projects launched on the Cardano network for the second week in a row. Increased regulatory and legislative scrutiny could be affecting project launches.
Investors are expected to become more interested in the project’s numbers in the near term. Prior to the Vasil hard fork, the number of projects launched on Cardano was 98, with 1,100 projects built on the Cardano network.
According to DeFi Llama, the total value-locked figures for Cardano have sent bullish signals. This morning, the overall TVL was down 2.28% at $43.74 billion. However, Cardano saw a 4.07% rise to $108.36 million, providing ADA price support.
Input Output HK (IOHK) updates will continue to turn heads. While ADA bucked the downtrend on Friday, the lack of news from the network should leave ADA in the hands of the broader crypto market. The weekly update disappointed for the second week in a row and called into question guarantees of an influx of projects in the first quarter.
News and updates from Binance and FTX of the ongoing SEC vs. Ripple case will continue to be key drivers for the broader crypto market. However, investors should also keep an eye on talks by US lawmakers and regulatory activity following the collapse of SVB Financial Group (SIVB).
ADA Price Action – Technical Indicators
A bullish start to the day saw ADA rise from an initial low of $0.316 to a high of $0.326. ADA briefly broke above the first main resistance level (R1) at $0.324.
ADA has to avoid the $0.311 pivot to re-target the first major resistance level (R1) at $0.324, and the morning high of $0.326. A return to $0.320 would support a bullish session. However, updates to the Cardano network, as well as the broader crypto market, should provide support.
In the event of a breakout, ADA would likely test the second major resistance level (R2) at $0.332. The third main resistance level (R3) sits at $0.353.
ADA broke below the 50-day EMA, currently at $0.329. The 50-day EMA turned back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA providing bearish signals.
A move through R1 ($0.324) and the 50-day EMA ($0.329) would give the bulls a run at R2 (0.332). However, a failure to move through the 50-day EMA ($0.329) would leave major support levels in play. A move through the 50-day EMA would send a bullish signal.
By Audy Castaneda