ADA Price Prediction: Bears Eye Sub-$0.375 on US Stats and Network News

Key Insights:

• On Thursday, cardano (ADA) returned to sub-$0.400 with a 3.72% slide to end the day at $0.388.
• Bearish sentiment from the broader crypto market stemming from US economic indicators and corporate earnings left ADA in the red.
• The technical indicators are bullish, with ADA sitting above the 100-day EMA to bring $0.45 into view.

On Thursday, ADA slid by 3.72%. Reversing a 0.75% gain from Wednesday, ADA ended the day at $0.388. While avoiding sub-$0.35 for the fourth time in nine sessions, ADA wrapped up the day at sub-$0.40 for the first time in three sessions.

A bullish start to the day saw ADA rise to an early high of $0.419. ADA broke through the First Major Resistance Level (R1) at $0.412. Coming up short of the Second Major Resistance Level (R2) at $0.420, ADA slid to a late low of $0.386. ADA fell through the First Major Support Level (S2) at $0.395. However, the Second Major Support Level (S2) at $0.386 limited the downside.

US economic indicators and corporate earnings sent ADA to sub-$0.400. However, Input Output HK (IOHK) network updates remain influential as investors look for a sharp increase in projects on the Cardano network.

Input Output HK Updates to Deliver ADA Direction Today

On Thursday, IOHK released the October edition of the Cardano 360. The markets remain focused on project numbers following the September 22 Vasil hard fork. IOHK technology manager Kevin Hammond provided the following updates,

• Clear signs of improvements to the network. Dapp, DeFi, and NFT experience cheaper and faster – Dquadrant, muesli swap, Jpg.store, and FluidTokens report sizeable declines in transaction fees and transaction sizes.
• New projects have announced launch plans for the remainder of the year and early 2023.
• Since the Vasil hard fork, CHARLi3, IAMX, NMKR, and Cardano Beam are among new projects taking advantage of the new Cardano capabilities.

Later today, IOHK will release the weekly development report, with project numbers likely to provide ADA price direction. A sharp increase in network projects would support a breakout session. However, considering Kevin Hammond’s comments, the numbers in early 2023 will likely be more significant.

ADA Price Action

This morning, ADA was down 0.52% to $0.386. A mixed start to the day saw ADA rise to an early high of $0.390 before falling to a low of $0.384.

Technical Indicators

ADA needs to move through the $0.398 pivot to target the First Major Resistance Level (R1) at $0.409 and the Thursday high of $0.419. A return to $0.400 would signal a possible bullish session. However, US economic indicators need to be crypto-friendly, and today’s IOHK update will need to impress to support a breakout session.

In case of an extended rally, the Second Major Resistance Level (R2) at $0.431 would likely come into play. The Third Major Resistance Level (R3) sits at $0.464.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.376 in play. However, barring an extended sell-off, ADA should avoid sub-$0.370 and the Second Major Support Level at $0.365. The Third Major Support Level (S3) sits at $0.332.

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

ADA sat above the 100-day, currently at $0.380. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

A bullish cross of the 50-day EMA through the 100-day EMA would signal a move through the 200-day EMA ($0.398) to target R1 ($0.409). However, a fall through the 100-day EMA ($0.380) would bring the 50-day EMA ($0.378) and S1 ($0.376) into play.