ADA Price Prediction: Bulls in the Need of a Catalyst to Target $0.410

Key Insights:

• ADA fell by 2.55% on Monday, with the bearish start to the week seeing ADA end the day at sub-$0.390 for the first time in seven sessions.
• Market sentiment toward the Cardano network and recent updates took a backseat, with ADA joining the broader crypto market in the red.
• However, the technical indicators remain bullish, supporting a return to $0.400.

ADA fell by 2.55% on Monday. Following a 1.75% loss on Sunday, ADA ended the day at $0.382. ADA ended the day at sub-$0.390 for the first time in seven sessions.

A bullish start to the day saw ADA rally to an early high of $0.403. Coming up against the First Major Resistance Level (R1) at $0.402, ADA slid to a final-hour low of $0.380. ADA fell through the First Major Support Level (S1) at $0.382 before ending the day at $0.382.

Fed Fear and Binance Overshadow Network Sentiment

It was a quiet Monday session. There were no material updates from Input Output HK (IOHK) to provide direction. Uncertainty over the launch date of EMURGO’s USDA algorithmic stablecoin weighed. Following the year-to-date bull run, ADA needs another price catalyst to resume the upward trend and support a breakout from the current year’s high of $0.414.

The lack of updates left ADA in the hands of the broader crypto market, which saw red for a third consecutive session.

News of Binance suspending US dollar withdrawals for non-Binance US users spooked investors. Fed Fear continued to test buyer appetite following the US January Jobs Report. Expectations of a less aggressive interest rate trajectory to bring inflation to target had supported the current bull run.

Today, EMURGO and Cardano hard fork news would draw interest. However, a lack of updates from IOHK would leave ADA in the hands of the NASDAQ Index and the broader crypto market. There are no US economic indicators to consider, which would leave FOMC member chatter to influence market risk sentiment.

ADA Price Action

This morning, ADA was up 0.79% to $0.385. A bullish start to the day saw ADA rise from an early low of $0.381 to a high of $0.385.

Technical Indicators

ADA needs to move through the $0.388 pivot to target the First Major Resistance Level (R1) at $0.397 and the Monday high of $0.403. A return to $0.400 would support a bullish session. However, Cardano updates and the broader crypto market would need to provide support.

In the event of a breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.411. The Third Major Resistance Level (R3) sits at $0.434.

Failure to move through the pivot ($0.388) would leave the First Major Support Level (S1) at $0.374 in play. Barring another broad-based crypto sell-off, ADA should avoid sub-$0.370 and the Second Major Support Level (S2) at $0.365. The Third Major Support Level (S3) sits at $0.342.

This morning, the EMAs and the 4-hourly candlestick chart (below) sent mixed signals.

ADA sat above the 100-day EMA, currently at $0.381. The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA widened from the 200-day EMA, delivering mixed signals.

A move through the 50-day EMA ($0.391) would support a breakout from R1 ($0.397) to target R2 ($0.411). However, a fall through the 100-day EMA ($0.381) would give the bears a run at S1 ($0.374). A move through the 50-day EMA would send a bullish signal.