ADA joined the broader crypto market in the red for the third day in a row on Saturday, falling 1.75% to end the session at $0.337. Intensifying scrutiny from lawmakers and regulators left the ADA on the defensive, with project entries on the Cardano network yet to impress. Technical indicators remained bearish, putting less than $0.320 into play.
ADA fell 1.75% on Saturday. Following a 2.28% loss on Friday, ADA ended the day at $0.337. ADA avoided a return to below $0.330 despite the bearish session.
A bullish start to the day saw ADA rally to an early high of $0.347 before pulling back. Breaking below the first major resistance level (R1) at $0.356, ADA fell to a late low of $0.331. However, pulling away from the first major support level (S1) at $0.326, ADA found late support to end the day at $0.337.
Input Output HK (IOHK) released the Weekly Development Report on Friday. The numbers were disappointing for investors focused on project entry, as no new projects were launched on the Cardano network in the past week. Increased regulatory and legislator scrutiny may be forcing developers to pause project releases. Project numbers in the coming weeks will provide a better picture.
Other statistics included 62.2 million transactions (Previous Report: 61.8 million), 7.87 million native tokens (PR: 7.83 million), and 70,258 token policies (PR: 70,039).
Silvergate Bank and Lawmakers Lobby the ADA and the Market in General
The news that Silvergate Bank has terminated its crypto payment network in response to several leading exchanges cutting ties with the crypto bank was negative. Coinbase, Crypto.com and Paxos were among the crypto exchanges that responded to the bank delaying the filing of its annual report on Wednesday.
The spread of crypto winter to Main Street could lead to increased scrutiny of the crypto market and challenge the theory that the crypto market is too small to affect financial stability.
UK crypto news added to the bearish sentiment, with UK banks announcing restrictions on credit card crypto purchases.
ADA Price Action – Technical Indicators
ADA has to avoid the pivot at $0.338 to target the first major resistance level (R1) at $0.346 and Saturday’s high of $0.347. A return to $0.345 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 $0.354 and resistance at $0.360. The third main resistance level (R3) sits at $0.370.
ADA broke below the 50-day EMA, currently at $0.355. 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 ($0.346) would give the bulls a run into R2 (0.354) and the 50-day EMA ($0.355). However, a failure to move through the 50-day EMA ($0.355) would leave major support levels in play. A break of the 50-day EMA would send a bullish signal.
By Audy Castaneda
