ADA Price Prediction: Bulls Revise Target to $0.375 as Momentum Builds

Key Insights:

• On Friday, ADA extended its winning streak to six sessions, rallying by 4.85% to end the day at $0.346.
• Input Output HK (IOHK) updates and easing FTX contagion delivered another bullish session, supported by US economic indicators and corporate earnings.
• The technical indicators are bullish, signaling a return to $0.400.

ADA rallied by 4.85% on Friday. Following a 2.17% gain on Thursday, ADA ended the day at $0.346. Notably, ADA revisited $0.35 for the first time since November 12 and extended its winning streak to six sessions.

A mixed start to the day saw ADA fall to an early low of $0.324. Steering clear of the First Major Support Level (S1) at $0.318, ADA rallied to a late high of $0.351. ADA broke through the First Major Resistance Level (R1) at $0.338 and briefly through the Second Major Resistance Level (R2) at $0.347 before ending the day at $0.346.

IOHK Updates, FTX Contagion, and the NASDAQ Index Delivered Support

On Friday, Input Output HK (IOHK) released its first Weekly Development update of the year. According to the Report for January 13,

• 112 projects launched on the Cardano network, up by one from December 17.
• Projects building on the Cardano network totaled 1,162, up by nine from the previous report.
• Plutus scripts totaled 5,386, of which 537 were Plutus V2 scripts. As of December 17, Plutus scripts stood at 4,855.

Before the Vasil hard fork, the number of projects launched on Cardano had stood at 98, with 1,100 projects building on the Cardano network.

Other stats included 58.7 million transactions (Previous Report: 56.8m), 7.50 million native tokens (PR: 7.28 million), and 68,167 token policies (PR: 66,902).

While the upswings in Plutus scripts and transactions were positive, the rise in new projects was modest.

Investors brushed aside the latest project numbers, however. Recent network updates, including the release of the Cardano Sidechain Toolkit and the anticipated launches of two algorithmic, stablecoins have delivered support.

Increased whale activity, new ADA-linked products, and a year-to-date jump in Cardano total value locked paints a bullish outlook.

According to DeFi Llama, the Cardano Total Value Locked (TVL) stood at $73.3 million this morning, up 9.21% over 24 hours and 44.3% year-to-date.

Today, the broader crypto market will continue to provide direction, with a choppier session likely as investors consider locking in profits. However, network updates and usage support further gains, with easing FTX contagion key to the shift in crypto market sentiment.

ADA Price Action

This morning, ADA was up 2.89% to $0.356. A bullish start to the day saw ADA rise from an early low of $0.345 to a high of $0.365. ADA broke through the First Major Resistance Level (R1) at $0.357 before easing back.

Technical Indicators

ADA must avoid the $0.340 pivot to break out from the First Major Resistance Level (R1) at $0.357 and retarget the Second Major Resistance Level (R2) at $0.367. A move through the morning high of $0.365 would signal an extended breakout session. However, the broader crypto market and Cardano news need to support a bullish session.

In the event of an extended rally, the bulls would likely test resistance at $0.375. The Third Major Resistance Level sits at $0.394.

A fall through the pivot ($0.340) would bring the First Major Support Level (S1) at $0.330 into play. Barring a broad-based crypto sell-off, ADA should avoid sub-$0.320 and the Second Major Support Level (S2) at $0.313. The Third Major Support Level (S3) sits at $0.286.

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

ADA sat above the 50-day EMA, currently at $0.310. The 50-day EMA widened from the 200-day EMA, with the 100-day EMA pulling away from the 200-day EMA, delivering bullish signals.

A hold above the 50-day EMA ($0.310) would support a breakout from R1 ($0.357) to target R2 ($0.367) and $0.375. However, a fall through S1 ($0.330) would give the bears a run at S2 ($0.313) and the 50-day EMA ($0.310). A fall through the 50-day EMA would signal a shift in investor sentiment.