ADA Price Prediction: Bulls Eye a Return to $0.400 to End Losing Streak

Key Insights:

• On Thursday, cardano (ADA) fell by 1.05%. Bucking the broader market trend, ADA ended the day at $0.377.
• Market angst towards Fed monetary policy and investor sentiment towards Input Output HK network updates left ADA on the back foot.
• The technical indicators remain bearish, with ADA below the 50-day EMA to leave sub-$0.30 in play.

On Thursday, ADA fell by 1.05%. Following a 2.56% loss on Wednesday, ADA ended the day at $0.377. Notably, ADA ended the session at sub-$0.40 for a third consecutive session and for the third time since January 2021. ADA also extended its losing streak to four sessions.

A mixed start to the day saw ADA rise to an early high of $0.393. However, falling short of the First Major Resistance Level (R1) at $0.392, ADA tumbled to a late morning low of $0.350. ADA fell through the First Major Support Level (S1) at $0.373 and the Second Major Support Level (S2) at $0.365 before wrapping up the day at $0.377.

Fed Fear and Input Output HK Network Updates Left ADA in the Red

The broader crypto market came under intense selling pressure through the morning session. Market jitters sent ADA into the deep red and to the lowest level since February 2021 as investors awaited the US CPI report for September.

Inflationary pressures softened, with the US inflation rate easing from 8.3% to 8.2%. While the numbers reflected persistent consumer price pressures, there was no spike to spook investors. The NASDAQ 100 and the broader crypto market rallied to end the day in positive territory.

By contrast, ADA continued to struggle, with Input Output HK (IOHK) updates yet to reflect an influx of new projects onto the Cardano network.

In September, Cardano founder Hoskinson talked about hundreds of projects considering the Cardano network after the mainnet hard fork. However, since the mainnet hard fork, project migration numbers have been disappointing.

As of October 7, 102 projects launched on Cardano, with 1,117 projects building on the Cardano network. Before the hard fork, the number of projects launched on Cardano had stood at 98, with 1,100 projects building on the Cardano network.

This week’s update will likely draw more interest following some lackluster numbers.

ADA Price Action

This morning, ADA was up 2.92% to $0.388. A bullish start to the day saw ADA rally from an early morning low of $0.376 to a high of $0.389.

Technical Indicators

ADA needs to avoid the $0.370 pivot to target the First Major Resistance Level (R1) at $0.390. A bullish crypto session would support a breakout from R1, though IOHK updates and US economic indicators would have to be price-friendly.

In the case of a breakout session, ADA would likely test the Second Major Resistance Level (R2) at $0.403. The Third Major Resistance Level (R3) sits at $0.436.

A fall through the pivot would bring the First Major Support Level (S1) at $0.370 into play. In the event of another extended sell-off, the Second Major Support Level at $0.337 should limit the downside. The Third Major Support Level (S3) sits at $0.304.

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

ADA sat below the 50-day, currently at $0.403. 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 ($0.390) would give the bulls a run at the 50-day EMA ($0.403) and R2 ($0.403). The 200-day EMA sits at $0.436. However, failure to move through the 50-day EMA ($0.403) would likely bring sub-$0.350 into play.