ADA Price Prediction: A Bearish Morning Brings $0.330 into View

Key Insights:

• On Tuesday, cardano (ADA) fell by 7.92% to end the day at sub-$0.40 for the first time in five sessions.
• The collapse of FTX and news of Binance’s plans to acquire FTX left ADA in the deep red.
• The technical indicators are bearish, with ADA sitting below the 100-day EMA, bringing $0.330 into view.

On Tuesday, ADA fell by 7.92%. Reversing a 0.50% gain from Monday, ADA ended the day at $0.372. Notably, ADA wrapped up the day at sub-$0.40 for the first time in five sessions while avoiding the October low of $0.330.

After a bearish morning, ADA rose to a late afternoon high of $0.417. ADA broke through the First Major Resistance Level (R1) at $0.414 before sliding to a late low of $0.345.

The FTX-fueled sell-off saw ADA slide through the day’s Major Support Levels. However, finding late support, ADA moved back through the Third Major Support Level (S3) to end the day at $0.372.

Relative to the broader crypto market, the loss was modest, with DOGE, ETH, SOL, and XRP seeing double-digit declines.

News of FTX facing a liquidity crunch and the collapse of FTT sent ADA and the broader crypto market into the red. However, reports of Binance planning to acquire FTX provided modest support.

For ADA investors, avoiding the 2022 low of $0.330 will provide comfort.

IOHK Updates Overshadowed by FTX Woes

On Tuesday, Input Output HK (IOHK) provided Twitter followers with an overview of SECP and how Cardano will support SECP.

Cardano founder Charles Hoskinson shared a hitwiththebusiness tweet highlighting sentiment toward the Cardano ecosystem. The tweet stated,

“Cardano – No liquidity issues, coin distribution almost entirely from retail (no VCs or insider manipulation), progression based on research, never went offline, no hacks. Cardano is a bulletproof example of how to properly build a crypto ecosystem.“

This week, news of Hoskinson announcing that he will not retire also remains price positive amid the current market turmoil.

However, price movement today will likely hinge on crypto market updates following the demise of FTX. Contagion fear and the threat of regulatory action left ADA in the red this morning.

ADA Price Action

This morning, ADA was down 1.61% to $0.366. A mixed morning saw ADA rise to an early high of $0.376 before falling to a low of $0.355.

Technical Indicators

ADA needs to move through the $0.378 pivot to target the First Major Resistance Level (R1) at $0.411. A return to $0.400 would signal a possible breakout. However, ADA would also need the support of the broader market for a sustained rebound.

In case of an extended rally, the bulls would likely take a run at Tuesday’s high of $0.417 but fall short of the Second Major Resistance Level (R2) at $0.450. Crypto market updates following the demise of FTT will influence. The Third Major Resistance Level (R3) sits at $0.522.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.339 and the 2022 low of $0.330 in play. However, barring another extended sell-off, ADA should avoid sub-$0.330.

This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

ADA sat below the 100-day, currently at $0.398. The 50-day EMA crossed through the 200-day EMA, with the 100-day EMA pulling back from the 200-day EMA, delivering bearish signals.

A move through the 100-day EMA ($0.398) would support a breakout from the 50-day and 200-day EMAs to bring R1 ($0.411) into view. However, a failure to move through the 100-day EMA ($0.398) would give the bears a run at S1 ($0.339) and the 2022 low ($0.330).