ADA Price Prediction: Bears Target Sub-$0.410 on Low Project Numbers

Key Insights:

• On Sunday, cardano (ADA) saw red for a third consecutive day to end the day at $0.419.
• A lack of updates from Input Output HK left the latest project numbers and the bearish sentiment from the broader crypto market to weigh.
• The technical indicators are bearish, with sub-$0.400 remaining in play.

On Sunday, ADA slid by 2.56%. Following a 1.15% decline on Saturday, ADA ended the week down 6.26% to $0.419, the lowest day’s end price since July 12.

A mixed start to the day saw ADA rise to an early high of $0.433. Coming up short of the First Major Resistance Level (R1) at $0.435, ADA slid to a late low of $0.418.

ADA fell through the First Major Support Level (S1) at $0.427 and the Second Major Support Level (S2) at $0.423. Notably, ADA fell through the August low of $0.424 to sub-$0.420.

Crypto Market Forces Send ADA to Sub-$0.420

Market sentiment towards the Fed and the economic outlook weighed on ADA and the broader crypto market. ADA joined the crypto market with a third consecutive daily loss on Sunday.

However, while bearish sentiment from across the broader market weighed, a lack of network news updates contributed to the return to sub-$0.420. Investors are looking for a marked increase in projects on the Cardano network to support an ADA price breakout.

According to Input Output HK, the number of projects launched on the Cardano increased by just one to 100 in the week ending September 30. Additionally, 1,113 projects are building on Cardano, up by a modest six from the previous week.

Cardano founder Charles Hoskinson talked about hundreds of projects considering the Cardano network after the mainnet hard fork. The surge in projects will need to materialize to reverse the current bearish trend.

ADA Price Action

This morning, ADA was up 0.95% to $0.423. A mixed start to the day saw ADA fall to a new September low of $0.416 before rising to a high of $0.424.

Technical Indicators

ADA has to avoid a fall through the $0.423 pivot to target the First Major Resistance Level (R1) at $0.429 and the Sunday high of $0.433. A marked shift in investor sentiment would be needed to support a return to $0.430.

In the case of a breakout session, the Second Major Resistance Level (R2) at $0.438 and $0.440 would likely come into view. The Third Major Resistance Level (R3) sits at $0.453.

A fall through the pivot would bring the First Major Support Level (S1) at $0.414 into play. However, barring an extended sell-off, ADA should avoid sub-$0.400. The Second Major Support Level at $0.408 should limit the downside. The Third Major Support Level (S3) sits at $0.393.

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

ADA sat below the 50-day, currently at $0.438. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA sliding back from the 200-day EMA, delivering bearish signals.

A move through R1 ($0.429) would give the bulls a run at R2 ($0.438) and the 50-day EMA ($0.438). The 200-day EMA sits at $0.460. However, failure to move through the 50-day EMA would leave ADA under pressure.