ADA Price Prediction: Bulls to Eye $0.420 on Bullish Network Sentiment

Key Insights:

• On Friday, cardano (ADA) rallied by 4.38% to end the session at $0.405.
• Improved sentiment toward the Cardano network and rising hopes of a December Fed pivot delivered the bullish session.
• The technical indicators are bullish, with ADA sitting above the 200-day EMA to bring $0.45 into view.

On Friday, ADA rallied by 4.38%. Reversing a 3.72% slide from Thursday, ADA ended the day at $0.405. Notably, ADA wrapped up the day at $0.400 for the third time in four sessions while avoiding sub-$0.35 for the fifth consecutive day.

Tracking the broader market, ADA fell to a mid-day low of $0.378. Steering clear of the First Major Support Level (S1) at $0.376, ADA rallied to a late high of $0.411. ADA broke through the First Major Resistance Level (R1) at $0.409 before a late pullback to end the day at $0.405.

US economic indicators and corporate earnings delivered much-needed support after Thursday’s sharp pullback. However, investor sentiment towards the Cardano network, post-Vasil hard fork, also provided price support.

Input Output HK Delivers Weekly Development Update

On Friday, Input Output HK (IOHK) released the weekly development update following Thursday’s October edition of the Cardano 360.

Key highlights included,

• Ongoing work on core technology improvements.
• New Daedalus pre-production version released.
• Marlowe Runtime used to execute Actus contracts.
• New HydraV1 specification updated.
• Find9 ecosystem rewards distributed.

Looking at the statistics,

• 103 projects launched on Cardano, unchanged from the previous week.
• Projects building on Cardano totaled 1,127, up by five from the previous week.

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.

While the project numbers remained lackluster, investors expect increased activity on the Cardano network. Last weekend, news of telemedicine platform Citaldoc completing its first ADA transaction on its platform showed what the future could hold for Cardano and ADA.

ADA Price Action

This morning, ADA was up 0.25% to $0.406. A mixed start to the day saw ADA fall to an early low of $0.402 before rising to a high of $0.406.

Technical Indicators

ADA needs to avoid the $0.398 pivot to target the First Major Resistance Level (R1) at $0.418. A move through the Friday high of $0.411 would signal a possible breakout session. However, ADA would need the support of the broader market for a bullish session.

In case of an extended rally, the Second Major Resistance Level (R2) at $0.431 would likely come into play. The Third Major Resistance Level (R3) sits at $0.464.

A fall through the pivot would bring the First Major Support Level (S1) at $0.385 into play. However, barring an extended sell-off, ADA should avoid sub-$0.380 and the Second Major Support Level at $0.365. The Third Major Support Level (S3) sits at $0.332.

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

ADA sat above the 200-day, currently at $0.398. The 50-day EMA converged on the 100-day EMA, with the 50-day and the 100-day EMAs narrowing to the 200-day EMA, delivering bullish signals.

A bullish cross of the 50-day EMA through the 100-day EMA would signal a move through R1 ($0.418) to target R2 ($0.431). However, a fall through the 200-day EMA ($0.398) would bring S1 ($0.385) and the 50-day ($0.382) and 100-day EMAs ($0.382) into play.