ADA Price Prediction: Bulls Target $0.400 on Justin Sun News

Key Insights:

• On Wednesday, cardano (ADA) tumbled by 14.78% to end the session at sub-$0.320 for the first time since February 2021.
• News of Binance walking away from the FTX acquisition sent ADA and the broader crypto market into the deep red.
• The technical indicators are bearish, with ADA sitting below the 50-day EMA, bringing $0.300 into view.

On Wednesday, ADA slid by 14.78%. Following a 7.92% decline on Tuesday, ADA ended the day at $0.317. Notably, ADA wrapped up the day at sub-$0.320 for the first time since February 2021.

A mixed morning saw ADA rise to a mid-morning high of $0.376. However, coming up short of the First Major Resistance Level (R1) at $0.411, ADA tumbled to a late low of $0.310. ADA fell through the First Major Support Level (S1) at $0.339 on the way to a new 2022 low. However, finding late support, ADA wrapped up the day at $0.317.

Hopes of Binance buying out FTX vanished in the afternoon session, with Binance announcing it was pulling the plug on the FTX acquisition.

Overnight, Bloomberg reported that FTX needs $8 billion to fill the hole or face bankruptcy.

However, market conditions improved this morning. News of Justin Sun working on a solution with FTX provided some market comfort, though there are no details relating to the ongoing discussions.

For ADA investors, avoiding sub-$0.300 will be the near-term goal. However, price action lies in the hands of the crypto news wires. Progress towards saving FTX would support an extended ADA and broad-based crypto rally.

While the ADA and the broader market are on the move this morning, there is the risk of a dead cat bounce. News of Justin Sun walking away could lead to another meltdown.

Input Output Network Updates Hit Pause

Input Output HK (IOHK) was silent on network updates mid-week, leaving investors to consider the current market environment.

However, founder Charles Hoskinson was vocal about the events that unfolded this week. Hoskinson noted Cardano had no exposure to FTX, so did not lose any money.

Hoskinson added,

“There is the case that FTX has been lobbying very heavily in Washington DC. Their failure could change the political landscape in unpredictable ways.”

The risk of a marked shift in the regulatory landscape could become a crypto headwinds.

ADA Price Action

This morning, ADA was up 9.78% to $0.348. A mixed morning saw ADA fall to an early low of $0.312 before rising to a high of $0.358.

Technical Indicators

ADA needs to avoid the $0.334 pivot to retarget the First Major Resistance Level (R1) at $0.359 and the Wednesday high of $0.376. A move through the morning high of $0.353 would signal a possible breakout. However, ADA would also need the support of the broader market for a sustained rebound.

In case of an extended rally, the bulls would likely take a run at the Second Major Resistance Level (R2) at $0.400. Crypto market updates on FTX will influence. The Third Major Resistance Level (R3) sits at $0.466.

A fall through the pivot would bring the First Major Support Level (S1) at $0.293 into play. However, barring another extended sell-off, ADA should avoid sub-$0.290.

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

ADA sat below the 50-day, currently at $0.388. 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 ($0.359) would give the bulls a run at the 50-day EMA ($0.388). However, a failure to move through the 50-day EMA ($0.388) would leave ADA under pressure and sub-$0.300 in play.