ADA Price Prediction: Bears Target Sub-$0.35 to Deliver a New 2022 Low

Key Insights:

• On Tuesday, cardano (ADA) reversed a 0.81% gain, sliding by 2.95% to end the day at $0.362.
• ADA succumbed to bearish sentiment from the broader crypto market, weighed by investor jitters over Fed policy and the economic outlook.
• The technical indicators remain bearish, with below the 50-day EMA leaving sub-$0.30 in play.

On Tuesday, ADA slid by 2.95%. Reversing a 0.81% gain from Monday, ADA ended the day at $0.362. Notably, ADA ended the session at sub-$0.40 for the eighth consecutive session.

A bullish start to the day saw ADA rise to an early high of $0.374. Coming up short of the First Major Resistance Level (R1) at $0.377, ADA slid to a late low of $0.357.

ADA fell through the First Major Support Level (S1) at $0.367 and the Second Major Support Level (S2) at $0.362. However, finding late support, S2 capped any recovery.

Input Output HK Awareness Drive Fails to Impress

On Tuesday, Input Output HK (IOHK) gave the crypto market an overview of Cardano’s three key network attributes,

• Consensus Protocol: Ouroboros, Cardano’s consensus protocol, establishes rigorous security guarantees.
• Staking Experience: Offers liquid staking with no lock-ups or slashing.
• Environmental Impact: Low power consumption.

However, the latest IOHK post failed to deliver ADA price support. Network updates remained price negative, reflected in the price action during bearish sessions.

While projects on the Cardano network are rising, the rate of increase has not been enough to suggest a marked impact on adoption to support a near-term bearish trend reversal. ADA has continued in a downward spiral since before the September 22 Vasil hard fork.

From an August high of $0.595, ADA has tumbled by 39% to the end of Tuesday price of $0.362. By contrast, the crypto market has fallen by 24.7%.

ADA Price Action

This morning, ADA was down 0.55% to $0.360. A bearish start to the day saw ADA fall from an early high of $0.362 to a low of $0.358.

Technical Indicators

ADA needs to move through the $0.364 pivot to target the First Major Resistance Level (R1) at $0.372 and the Tuesday high of $0.374. However, bearish sentiment towards the IOHK network updates will leave ADA in the hands of the broader crypto market.

In the case of a breakout session, ADA would likely test the Second Major Resistance Level (R2) at $0.381. The Third Major Resistance Level (R3) sits at $0.398.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.355 in play. However, barring an extended sell-off, ADA should avoid sub-$0.345. The Second Major Support Level at $0.347 should limit the downside. The Third Major Support Level (S3) sits at $0.330.

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

ADA sat below the 50-day, currently at $0.379. The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMAs, delivering bearish signals.

A move through R1 ($0.372) would give the bulls a run at the 50-day EMA ($0.379) and R2 ($0.381). The 200-day EMA sits at $0.419. However, failure to move through the 50-day EMA ($0.379) would leave ADA under pressure.