ADA joined the broader crypto market in the red on Friday, falling 4.44% to end the session at $0.366. US economic indicators and Fed talk, along with the Input Output HK (IOHK) weekly development update, weighed. Technical indicators remained bearish, putting less than $0.340 on the line.
ADA fell 4.44% on Friday. Following a 1.54% loss on Thursday, ADA ended the day at $0.366, extending the losing streak to four sessions.
Through a morning range-bound session, ADA rallied to a high of $0.385 before pulling back. Breaking below the first major resistance level (R1) at $0.392, ADA fell to a late low of $0.358. ADA fell through the first major support level (S1) at $0.376 and the second major support level (S2) at $0.370 to end the day at $0.366.
It was a busy weekend, with US economic indicators and Input Output HK (IOHK) weekly development numbers to consider. Both sets of data disappointed, sending ADA below $0.360 for the first time since February 14.
An unexpected pick-up in US inflation and upbeat personal income and spending boosted bets for a more aggressive Fed rate path to bring inflation on target. The numbers sank the NASDAQ Composite Index (-1.69%) and the broader crypto market, which fell 2.77% ($29.08 billion).
The Fed talk rounded out a bearish afternoon session, with FOMC member Loretta Mester noting that the Fed will have to do more to push inflation toward the 2% target.
IOHK Weekly Development Update Disappoints Again
On Friday, Input Output HK (IOHK) released the Weekly Development Report. 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 61.8 million transactions (Previous Report: 61.4 million), 7.83 million native tokens (PR: 7.79 million), and 70,039 token policies (PR: 69,778).
The modest increase in the number of projects was disappointing, after the lackluster numbers of the previous week.
ADA Price Action – Technical Indicators
This morning, ADA was up 0.27% at $0.367. A bullish start to the day saw ADA rise from an initial low of $0.365 to a high of $0.368.
ADA has to move through the $0.370 pivot to target the first major resistance level (R1) at $0.381 and Friday’s high of $0.385. A return to $0.380 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 $0.397 and resistance at $0.400. The third main resistance level (R3) sits at $0.424.
A bearish cross from the 50-day EMA to the 100-day EMA would support a drop through S1 ($0.354) to put less than $0.350 in sight. However, a move through the 200-day EMA ($0.377) and R1 ($0.381) would give the bulls a run at the 100-day EMA ($0.387) and 50-day EMA ($0.388). A break of the 50-day EMA would send a bullish signal.
By Audy Castaneda
