ADA rose 1.00% on Monday to end the session at $0.404. Updates from Input Output HK (IOHK), as well as the broader crypto market, provided a bullish start to the week. Technical indicators remained bullish, leaving $0.450 up for grabs.
ADA rose 1.00% on Monday. Partially reversing a 1.48% loss on Sunday, ADA ended the day at $0.404. Despite the bullish session, ADA failed to reach the $0.420 level for the fourth session in a row.
A bearish start to the day saw ADA slide to an early morning low of $0.390. ADA briefly fell through the first major support level (S1) at $0.394. However, finding support in the broader crypto market, ADA rallied to a late-morning high of $0.410. Facing the first major resistance level (R1) at $0.409, ADA saw a late pullback to end the session at $0.404.
IOHK and the Broader Crypto Market provide support
It was a quiet Monday session with US markets closed for George Washington’s birthday. There were no US economic indicators weighing on investor sentiment. Investors also took a breather from US regulatory scrutiny following the White House reaction to FTX’s bankruptcy.
Investor sentiment towards developer activity on the Cardano network remains bullish, supporting ADA at current price levels. An influx of new projects on the Cardano network would spark another bull run to bring $0.50 into view. However, investors are likely to need more clarity on the regulatory outlook to support the bullish momentum.
ADA Price Action – Technical Indicators
This morning, ADA was down 0.50% at $0.402. A mixed start to the day saw ADA rise to an early high of $0.406 before falling to a low of $0.400.
ADA has to avoid a drop through the $0.401 pivot to target the first major resistance level (R1) at $0.413. A return to $0.410 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 $0.421. The third main resistance level (R3) sits at $0.441.
A drop through the pivot ($0.401) would bring the first major support level (S1) into play at $0.393. Barring a broad-based cryptocurrency sell-off, ADA should avoid below $0.390 and the second major support level (S2) at $0.381. The third major support level (S3) sits at $0.361.
ADA broke above the 50-day EMA, currently at $0.396. After the bullish crossover on Wednesday, the 50-day EMA has broken further away from the 100 day EMA, and the 100-day EMA has broken out from the 200-day EMA, providing bullish signals.
A hold above the 50-day EMA ($0.396) would support a break of R1 ($0.413) to the target of R2 ($0.421). However, a drop through the 50-day ($0.396) would bring S1 ($0.0.393) and the 100-day EMA ($0.389) into play. A drop through the 50 day EMA would send a bearish signal.
By Audy Castaneda
