ADA joined the broader crypto market in a breakout session on Friday, rallying 7.36%, to end the day at $0.350. Input Output HK’s (IOHK) weekly development updates faded to the background, as investors turned their backs on the US banking sector in favor of the digital asset space. Technical indicators turned bullish, putting $0.40 on the line.
ADA rose 7.36% on Friday. Following a modest 0.31% gain on Thursday, ADA ended the day at $0.350. Significantly, ADA held the $0.350 level for the first time since February 2.
A bearish start to the day saw ADA drop to an early morning low of $0.322. Pulling away from the first major support level (S1) at $0.319, ADA rallied to a last-hour high of $0.351. ADA broke above major resistance levels, to end the day at $0.350.
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 increasing modestly after stagnating for two consecutive weeks. Increased regulatory and legislative scrutiny 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 63.0 million transactions (previous report: 62.6 million), 7.97 million native tokens (PR: 7.92 million), and 70,737 token policies (PR: 70,484).
While the weekly development update was disappointing, Cardano’s network updates continued to attract interest. However, the growing crisis in the US banking sector was the key to the working session. Demand for crypto continued to rise, with Bitcoin (BTC) rising 9.14%.
Investors responded to the news that SV Financial Group (SIVB) filed for bankruptcy, Fed bailouts exceeded levels seen during the global financial crisis, and 11 banks bailed out First Republic Bank.
The NASDAQ Composite Index fell 0.74%, and the Dow and S&P 500 posted losses of 1.19% and 1.10%, respectively. By contrast, the cryptocurrency market capitalization rose 7.32% ($77.35 billion) to $1.134 billion, its highest level since August 2022.
Beyond Cardano, investors should monitor Binance and FTX-related news and updates from the ongoing SEC v Ripple case. Following the rise in demand for crypto in reaction to the US banking crisis, the talk of US regulators and lawmakers will also weigh in.
ADA Price Action – Technical Indicators
This morning, ADA was up 0.29% at $0.351. A choppy start to the day saw ADA fall to an initial low of $0.345 before rising to a high of $0.358.
ADA has to avoid the pivot at $0.341 to target the first major resistance level (R1) at $0.360. A move through the morning high of $0.358 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 $0.370. The third main resistance level (R3) sits at $0.399.
ADA broke above the 200-day EMA, currently at $0.347. The 50-day EMA closed above the 100-day EMA, with the 100-day EMA lowering back to the 200-day EMA, providing bullish signals.
Avoiding the 200-day EMA ($0.347) would support a break of R1 ($0.360), to give the bulls a run at R2 (0.370). However, a drop through the 200-day EMA ($0.347) would bring the 100-day EMA ($0.338) and 50-day EMA ($0.334) into view. A slide through the 50-day EMA would send a bearish signal and give the bears a run at the major support levels.
By Audy Castaneda
