ADA Price Prediction: Bulls Eye $0.265 to Target $0.270

Key Insights:

• ADA rose by 1.17% on Friday, ending the session at $0.259.
• US economic indicators, the NASDAQ Index, and Cardano network news delivered support.
• However, the technical indicators remain bearish, signaling a possible fall to sub-$0.245.

On Friday, ADA rose by 1.17%. Following a 1.19% gain from Thursday, ADA ended the day at $0.259. Notably, ADA ended the day at sub-$0.260 for the fifth consecutive day.

A mixed start to the day saw ADA fall to an early low of $0.255. Steering clear of the First Major Support Level (S1) at $0.250, ADA rallied to an early morning high of $0.264. ADA broke through the First Major Resistance Level (R1) at $0.260 and the Second Major Resistance Level (R2) at $0.263.

However, a morning pullback led ADA to an afternoon low of $0.256 before finding support to end the day at $0.259.

ADA Tracks the NASDAQ Index on a Choppy Thursday

There were no network updates from Input Output HK (IOHK) to provide direction on Friday. Because of the holidays, IOHK will release the next weekly development report on January 13.

The lack of updates proved favorable, with investors and analysts reviewing the stats for the year.

Having hit a record high in October, Cardano-NFT volumes resumed an uptrend from late November, providing price support.

According to OpenCNFT, NFT volume rose to 1,614,033,081 ADA on December 23 versus 793,562,555 ADA on November 24.

Smart contract updates have also been positive, with the number of Plutus Scripts continuing to surge. On December 16, the number of Plutus scripts stood at 4,855 versus 3,771 on November 24.

With the NFT and smart contract stats cushioning the downside, the imminent launches of two algorithmic stablecoins on the Cardano network should support a bullish start to 2023. There is also the Voltaire upgrade for investors to consider in addition to Hydra and Mithril.

Having fallen to a 2022 low on Thursday, the other piece of the jigsaw will be an influx of new projects onto the network following the Vasil hard fork. ADA may struggle to break out from its current ranges until there is an influx of projects.

For the day ahead, a lack of updates from IOHK and Charles Hoskinson will likely leave ADA in the hands of the broader crypto market.

ADA Price Action

This morning, ADA was up 0.39% to $0.260. A bullish start to the day saw ADA rise from an early low of $0.259 to a high of $0.260.

Technical Indicators

ADA needs to avoid the $0.259 pivot to target the First Major Resistance Level (R1) at $0.264. Holding onto the $0.260 handle would signal a bullish session. However, ADA would need the broader market to support a breakout afternoon session.

In the event of an extended rally, the bulls will likely take a run at the Second Major Resistance Level (R2) at $0.268 and $0.270. The Third Major Resistance Level (R3) sits at $0.277.

A fall through the pivot would bring the First Major Support Level (S1) at $0.255 into play. Barring an event-driven sell-off, ADA should avoid sub-$0.250. The Second Major Support Level (S2) at $0.250 should limit the downside. The Third Major Support Level (S3) sits at $0.241.

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

ADA sat below the 50-day EMA, currently at $0.266. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA, delivering bearish signals.

A move through R1 ($0.264) would support a run at the 50-day EMA ($0.266) and R2 ($0.268). However, failure to move through the 50-day EMA ($0.266) would leave ADA under pressure.